8% property tax cut approved for Maricopa County homeowners
PHOENIX (3TV/CBS 5) — Good news for Valley homeowners who have seen the value of their homes skyrocket in the last couple of years. The Maricopa County Board of Supervisors approved a cut to property taxes. The approved primary tax cut will be the county’s largest decrease in 40 years. “I think it’s helpful,” Valley broker Eugene Quackenbush with Get Your Nest said.
With inflation at a 40-year high, the board decided to cut taxes to help the 4.5 million residents stay afloat. Though it isn’t a significant change, Quackenbush says it’s a step in the right direction. “If you have a home that hasn’t been reassessed in a year and the value went up to $100,000 then you are seeing a good size increase on your property tax,” Quackenbush said.
Right now, the county’s primary tax rate is at 1.35%. The tax cut approval will drop that to 1.25. That’s $125 per $100,000 dollars of home value. “So you will save about $10 per hundred thousand dollars,” Quackenbush said.
On a $400,000 home, for example, the new tax would be $500, saving the homeowner around $40 compared to the old tax rate. “It is something. All of those hundreds of dollars add up,” Quackenbush said.
However, the cut applies only to the county’s portion of the property tax rate. It does not apply to additional taxes, bonds, or levies approved and assessed by cities, schools, or other special taxing districts.
“People’s home evaluations have gone up so one of the things we can do as supervisors is make sure we can help alleviate those concerns and one of the ways of doing that is by cutting the rate,” Maricopa County Supervisor for District 2 Thomas Galvin said.
Galvin says this cut will not impact local school funding. “Still the largest part of your property tax, your total property tax goes to the school district and that’s how we pay for schools and for education is through these property taxes. So what we are only cutting now is the rate that applies to your home but still the large part, the other part of your property tax for schools is not being changed,” Galvin said.
This budget was approved for the 2023 fiscal year, meaning homeowners will start noticing the change next month through June of 2023.
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