Kevin McCarthy, President of the Arizona Tax Research
Association, said his rough estimate is that the initiative proposed
by Prop 13 Arizona will cut real property taxes by half.
"Obviously, it would have huge impact on our state and local public
finance system," he said. McCarthy said he is sympathetic to the
initiative's organizers. "I think it would be wise for the state
legislature and the governor to also take notice that there is
considerable unrest out there with property taxpayers," he said.
But he
said the initiative goes further than the problem warrants. He said
one problem is that the initiative does not appear to address
outstanding obligations that local governments are mandated to pay.
Another
big question is what to do with the existing property tax system,
which allows local governments to establish tax rates within
limitations, he said.
