The Tempe City Council will hold a final hearing June 16 to adopt a 39-cent per $100 assessed value on property taxes for 2011-12. If approved, the Tempe property tax rate would increase from $1.40 to $1.79 per $100 of assessed value, in order to restore approximately $22.1 million for city improvements.
Early this month, Tempe residents addressed concerns during a city council meeting over the proposed increase, some stating it would increase taxes for many residents.
However, Tempe Mayor Hugh Hallman said the increase would actually create a tax cut for home-owners. Property values have slumped to such a low in the midst of the real estate crisis, he said some residents’ tax bill would actually decrease.
Some residents attending recent council meetings expressed concerns the tax would severely hit residents with fixed incomes.
The property tax rate increase was proposed in order to provide funds for the capital improvements program, said Ken Jones, director of finance and technology for Tempe.
During a past meeting in south Tempe, Jones said it is essential to implement the property tax increase, allowing property taxes to “float over time,” in accordance with Tempe property values.
Allowing the tax rate to float over time would essentially protect taxpayers from paying higher tax bills if their property values increase over coming years. For several years, Tempe’s property tax rate remained fixed at $1.40.
