A debate among taxpayers regarding the most hated tax rarely changes minds. The current legislative session features a debate about whether to direct tax relief to property taxpayers or income taxes or possibly both.


Valid arguments can be advanced about the deleterious impact of most major taxes. However, the property tax historically has endured the wrath of taxpayers. Why? Because unlike other major taxes, the property tax is the object of a complicated annual shell game played by elected officials that ultimately wears thin with those paying the tax.

Despite some concerns about the tax breaks it offers, Arizona's Enterprise Zone program appears headed for a five-year extension.


That means manufacturing businesses looking to locate within designated areas of the state will qualify for income-tax breaks that amount to $3,000 per employee, up to 200 workers, for three years.

Businesses also get a lower property-tax assessment for five years.

A state economic program that attracts jobs and business investment to rural and urban areas with high unemployment and poverty rates is facing extinction because of some strong opposition in the state Legislature.


Some conservative Republicans and Democrats in the state Senate oppose extending the state's enterprise zone program because it offers special incentives and tax breaks to specific businesses.

To understand Proposition 101, it's necessary to go back to 1980. The Legislature met in special session that year and referred to voters a package of 10 propositions that placed ceilings on property taxes and on local spending.


This sweeping tax-reform package, approved by four of every five voters, had as its cornerstone measures that sharply limited tax collections by counties, cities and community colleges to 2 percent per year. In other words, these jurisdictions could exceed their previous year's tax levy by only 2 per cent, plus the value of new construction.

It may not be a sexy issue, but a state senator says that if a ballot proposition concerning local property tax rates doesn’t receive voter approval, homeowners in some tax jurisdictions could face steep property tax increases and have no recourse.


“If [Proposition] 101 fails, then we’re at the mercy of the local government to be nice and, on their own, not increase property taxes,” Sen. Dean Martin, R-6, said. “101 is the way to make sure your property tax doesn’t go up next year.”

A voter-approved cap on property tax levies will become official Monday. And a private foundation is looking to put the same limits on taxes for flood control districts and libraries.


Proposition 101 - the Taxpayer Protection Act - was passed by voters earlier this month by a slim seven-tenths of 1 percent margin. Prop. 101 limits the primary property tax levied by counties to the previous year's amount plus up to two percent for growth. A greater increase can be implemented but the county must first get approval from the voters.

Property-valuation notices recently went out in the mail, so it's time for businesses to pull out their calculators.


Owners of commercial properties likely will find the valuation exercise more critical this year than will homeowners.

For one thing, businesses have more ways to challenge an assessment. For another, commercial valuations rose at a higher clip than residential properties over the past year.

If you've seen homes selling for less in your neighborhood lately, you might be thinking there's a silver lining. Your home could be worth less, so your taxes might be less, too. Right?


The answer is an unqualified maybe.

Homeowners in Maricopa County got an envelope in the mail last week showing their homes' new assessed value. And on average, that value is up. Not the 52 percent rise of the boom days, but still up, 13.4 percent overall.

Figuring out what that means for your taxes is a trickier proposition.

Over the past few days, Debbie Cox, a Realtor in Surprise, has received more than a dozen faxes and phone calls from worried clients.


It's that time of year when the Maricopa County Assessor's Office mails out property valuation notices, and some homeowners were surprised at what they saw for 2008.

West Valley cities saw some of the metropolitan area's highest increases in single-family home valuations, which could mean higher property taxes next year.

On Tuesday, Maricopa County residents will start getting the news: Your homes are worth a lot more, and you're likely to be paying more in property taxes.


More than 1.3 million notices of property values will begin hitting Maricopa County mailboxes, bringing news that's sure to cause delight and consternation.

It will be unknown how these latest valuations will translate into taxes until local governments set their budgets and lock in tax rates in August 2007. Property owners will receive tax bills for the new assessments a month or so later.