County discusses tax increase amid property value growth and rate decrease

The Coconino County Board of Supervisors met on June 12, 2025, to discuss the Fiscal Year 2026 Truth in Taxation Proposal, focusing on the complexities of tax rates and property values. The meeting highlighted a seemingly contradictory situation where the county is set to increase taxes while simultaneously decreasing the tax rate.

Supervisor Vasquez raised concerns about the implications of the proposed tax increase, questioning how it could lead to a decrease in the overall tax rate. County officials explained that the Truth in Taxation statute mandates that if the county collects even one dollar more than the previous year, it must announce a tax increase. However, due to rising property values—reported to have increased by approximately 4.3%—the tax rate is adjusted downward to maintain the same revenue level.

The discussion clarified that while the county's tax levy may increase, the rate decrease is a result of the formula used to calculate taxes, which takes into account both property values and the tax rate. This situation can be confusing for residents, as it presents a tax increase alongside a lower rate.

Officials emphasized the importance of transparency in communicating these changes to the public, suggesting that a supplemental notice could be issued to clarify that the tax rate is decreasing despite the overall increase in tax revenue.

The meeting also touched on the county's balanced budget outlook, indicating that further discussions would continue regarding the Public Health Services District and other budgetary considerations. The complexities of the tax proposal and its implications for residents remain a priority for the county as it navigates fiscal responsibilities.