This week, the Town of Queen Creek published a Truth in Taxation notice as required by Arizona state law, explaining potential changes in the amount of property taxes collected.
The notice deals only with the primary property taxes, which are designated for public safety, including fire, law-enforcement and emergency medical services, according to a release.
Increased home values, in addition to growth the town has experienced in the residential and commercial sector, may lead to an increase in the overall property tax revenues received by the town.
Arizona has a two-tiered property tax system. Primary --- or “limited” --- property taxes pay for government operations; and secondary --- or “unlimited” --- property taxes pay for voter-approved bonds that fund construction of public facilities and infrastructure.
Excluding special taxing districts, property owners in the Town of Queen Creek pay approximately 15 cents for every dollar in property taxes to the town. The remaining 85 cents goes to public schools, community colleges and Maricopa or Pinal County, the release states.
In 2007, the residents of Queen Creek voted to approve a “limited” property tax not to exceed $1.95 per $100 of assessed property value to pay for public safety. Funds raised by the property tax help pay for the Queen Creek’s four fire stations and the Maricopa County Sheriff’s Office contract for law enforcement in the community. The current property tax rate covers approximately 41% of public-safety-related expenses.
If the Town Council elects to keep the property tax rate the same at $1.95 per $100 of assessed home value, the town is expected to raise an additional $2,102,564 in primary property taxes in the next fiscal year.
The increase in county-appraised home values accounts for $568,253 of the potential increase; new construction accounts for the remaining $1,534,311.
If the primary property tax rate remains at $1.95 per $100 of assessed value --- unchanged from past years, as homes are assessed at a higher value, residents can expect to pay additional property taxes.
During the Great Recession, the town experienced a one-third decline in property-tax revenue. Unlike many communities and tax districts who had a "floating" tax rate, the town’s property tax revenue declined considerably because Queen Creek has a fixed primary property tax rate of $1.95 per $100 of value, the release states.
The scheduled adoption of the town’s 2020/21 budget and the legally required public hearing on the budget and proposed property tax levy are scheduled for 6:30 p.m. Wednesday, June 17 at the Queen Creek Community Chambers, 20727 E. Civic Parkway, Queen Creek. For more information on the council meeting, go to QueenCreek.org/WatchMeetings. For questions, contact the Town of Queen Creek Budget Division at 480-358-3177.
For more information about the town’s budget, go to QueenCreek.org/Budget. To keep up-to-date on town activities, follow Facebook @QueenCreek and Twitter @TownofQC.