Coconino County reviews property tax rates and budget amid rising values

The Coconino County Board of Supervisors held a budget hearing on May 5, 2025, focusing on the fiscal year 2026 budget and property tax rates. Key discussions revolved around the county's property tax structure, compensation for county employees, and the implications of maintaining current service levels.

During the meeting, officials highlighted that Coconino County has the lowest primary property tax rate in Arizona, which has significant implications for funding county services. The general fund property tax rate is projected to decrease from 49 cents to 48 cents per $100 of assessed value, despite an overall increase in property values. This decrease is attributed to the county's ability to increase its tax levy by 2% while property values have risen by approximately 4.4%. As a result, the median taxpayer will see a modest increase of about $2.10 in their property taxes.

The discussion also touched on the challenges of attracting and retaining employees in a competitive job market, particularly in light of rising housing costs in areas like Flagstaff and Page. The county is facing significant vacancies and is evaluating its compensation packages to remain competitive with partner agencies.

Additionally, the board addressed secondary property taxes, including those for public health services and flood control. The public health services district will maintain its maximum allowable rate of 25 cents, while the flood control district will also remain at its maximum rate of 50 cents. The overall tax levy for these districts is expected to increase, with the public health services district seeing a 5.7% increase due to rising property values.

The meeting concluded with a reminder of the upcoming truth in taxation hearing scheduled for June 24, which is necessary for the board to proceed with the proposed budget recommendations. The discussions underscored the county's commitment to fiscal responsibility while navigating the complexities of property taxation and service provision in a growing community.