Scottsdale Real Estate, Property Tax Notice Published

Truth in Taxation notice published; city property taxes to remain a fraction of owners total tax bill

Scottsdale this week is publishing a Truth in Taxation notice, as required by Arizona state law, which deals solely with the citys primary property tax levy. The citys combined (primary and secondary) property tax rate is expected to remain unchanged next year.

Under Arizonas two-tiered property tax system, primary, or limited, property taxes pay for government operations. The secondary, or unlimited, property taxes pay for voter-approved bonds which fund construction of public facilities and infrastructure. About 11 cents of every dollar in property taxes paid by Scottsdale property owners goes to the city for these two uses, and the remainder goes to public schools, the county, community colleges and various special taxing districts (see graph).

The citys combined rate will stay flat at 79 cents for fiscal year 2009-10. Regarding Scottsdale real estate, the owner of a home valued at $100,000, for example, would pay about $79 in city property taxes. The amount of the property tax bill on each individual property depends on the tax rate and the propertys assessed value. The Maricopa County Assessors Office determines property values used to calculate tax bills — not the city of Scottsdale.

The City Council is set for tentative adoption of the 2009-10 budget at 5 p.m. Tuesday, May 19, and final adoption of the budget at 5 p.m. Tuesday, June 2, in the City Hall Kiva, 3939 N. Drinkwater Blvd. A legally required public hearing on the proposed property tax levy will be held immediately prior to the final budget adoption on June 2.

Citizens with questions regarding the city property tax rate or other budget issues may contact the Financial Services Department at (480) 312-7084.

The following is a complete text of the legally required Truth in Taxation Hearing Notice pertaining to the primary tax rate:

Truth in Taxation Hearing

Notice of Tax Increase

In compliance with section 42-17107, Arizona Revised Statutes, the City of Scottsdale is notifying its property taxpayers of Scottsdales intention to raise its primary property taxes over last years level. Scottsdale is proposing an increase in primary property taxes of $447,329 or 2.0%.

The proposed tax increase will cause Scottsdales primary property taxes on a $100,000 home to increase from $33.08 (total taxes that would be owed without the proposed tax increase) to $36.50 (total proposed taxes including the tax increase).

This proposed increase is exclusive of increased primary property taxes received from new construction. The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides.

All interested citizens are invited to attend the public hearing on the tax increase that is scheduled to be held on Tuesday, June 2, 2009, at 5:00 p.m. at Scottsdale City Hall, 3939 N. Drinkwater Boulevard, Scottsdale, Arizona.