Municipal and County Government

The La Paz County Supervisors met July 26 with representatives from the Arizona Tax Research Association to discuss the county’s financial state and the fiscal year 2011-12 budget. ATRA Vice President Jennifer Stielow and tax analyst Ben Nowicki had questions regarding some aspects of the budget.

For the first time since metro Phoenix home values crashed, most of the region's homeowners can expect a noticeable drop in their property taxes. Maricopa County property-tax bills are being mailed this week, and the average homeowner bill is expected to decline more than $60 from last year's bill. Search home values | Current housing market confusing

Arizona has been able to attract Internet businesses in part because it does not tax online sales. But the "tax or not to tax" debate still rages in some quarters. Internet retailers generally cannot be forced to collect state sales tax, although Arizonans are supposed to pay "use taxes" for any online purchases they make for which they pay no Arizona sales tax.

The delicate balancing act involved in changing Arizona’s property tax structure will leave some homeowners paying higher property taxes. Because of the way property taxes are structured in Arizona, any decrease in the commercial property assessment ratio will shift a higher tax burden onto homeowners. School districts and other entities that levy property taxes set their rates to reach a certain dollar amount, and when one rate is lowered, others rise accordingly.