(Source: KTAR): Peter Samore – The Phoenix City Council is planning to reduce the property tax rate, but that doesn’t mean residents should expect smaller bills.
According to a Truth in Taxation notice published Monday as required by state law, property owners in the city will see an average tax increase of 3% if the proposed change is adopted.
“Because of assessed valuation growth, as well as new construction, the actual levy — what we collect — will actually increase,” Phoenix Budget Director Jeff Barton said.
That comes out to an extra $5.3 million yearly for expenses covered by the city’s general fund, including hires and raises for police, firefighters and other city workers.
“I think the residents who came out to the hearing were really excited about the services that they’re going to be getting back with the surplus,” Barton said.
The current primary property tax rate is $1.3163 per $100 of assessed valuation. The proposed rate for the coming year is $1.3055 per $100.
The City Council’s tentative budget adoption vote is set for Wednesday, with a final vote later in the month.
A public hearing on the tax increase is scheduled for 2:30 p.m. June 19 at the council chambers.