ATRA in the News: Property Tax
And the trend in Maricopa County is a sign of trouble, said Kevin McCarthy, president of the Arizona Tax Research Association. “Those are not good numbers,” he said. “The system is not supposed to work this way.”
Kevin McCarthy, president of the Arizona Tax Research Association, said many taxpayers saw a dramatic increase in the assessed value of their homes during the recent real estate boom. But some taxing jurisdictions left their rates the same. In short, while the tax rate did not necessarily increase, taxpayers’ bills did as a result of soaring home valuations.
"In no small way, our property-tax system is a job-killer," said Kevin McCarthy, president of the Arizona Tax Research Association. "It's the equivalent of putting a stop sign at the state border saying, 'You don't want to come here.' "
Kevin McCarthy, president of the Arizona Tax Research Association, says he was surprised to find the idea in the $8.2 billion state budget passed last week by the GOP-led Legislature, but supports it nonetheless. McCarthy says the plan doesn't constitute an immediate tax increase because it only affects bonds passed by voters in future elections.
The economic crisis facing Arizona is extraordinary. Arizona's unemployment is up to 7 percent, and 155,000 Arizonans lost their jobs in the past year. This economic collapse has led to a record state budget deficit.
Groups signing onto Wednesday's letter include the Arizona Tax Research Association, Greater Phoenix Chamber of Commerce, Arizona Free Enterprise Club, Arizona Manufacturers Council, National Federation of Independent Business and the East Valley and West Valley chambers of commerce.
There could be some good news in all of this if the lower assessments automatically meant lower tax bills. But that is not the case, said Kevin McCarthy of the Arizona Tax Research Association, a private organization that monitors state and local tax policies.
Joining the chamber in supporting House Bill 2073 were Pinnacle West Capital Corp., the National Federation of Independent Business, the National Association of Industrial and Office Properties and the Arizona Manufacturers Council. The Arizona Tax Research Association and Americans for Tax Reform also supported the bill.
The Arizona Tax Research Association, under the leadership of Kevin McCarthy, opposed both of last year’s property tax initiatives. But he has lobbied the legislature to curb the taxing power of fire districts.