Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Property Tax Truth In Taxation topic
No spam. Unsubscribe anytime.
Coconino County sets tentative tax-levy notices; truth-in-taxation hearing scheduled as assessed values rise
Summary
Staff recommended the county use its full allowable levy increase in the general fund and scheduled the statutorily required truth-in-taxation notices and hearing; due to changes in assessed values the recommended tax rate will fall even as the levy rises, which staff said can confuse taxpayers.
Coconino County finance staff told the board they will advance the legal notices for the truth-in-taxation process after the board reviews the recommended tentative budget.
Chief Fiscal Officer Siri Mullaney explained the statutory mechanism: when a county increases the property tax levy over the prior year (even by the allowable 2% growth on property that was already on the roll), state statute requires a notice that the county “is increasing taxes.” Because limited taxable values and new construction are part of the formula, the resulting tax rate can fall even though the levy (the total dollars collected) increases.
Illustrating the math with a median residential example drawn from the assessor’s data, staff showed that while the general fund levy would rise in dollars, the county’s primary tax rate would be lower under the recommended levy because assessed values on the roll increased more than the levy percentage. Staff said the median residential impact across the three county property-tax levies (general fund, public health services district and flood control district) was about $10 total for the year on the typical county property.
Staff warned that the rate-versus-levy effect is counterintuitive for taxpayers and recommended a supplemental explanatory notice be issued with the statutorily required legal notice so residents understand why a “truth-in-taxation” notice can reflect a tax increase even though the tax rate shown may be lower.
Why it matters: Truth-in-taxation hearings are required to adopt the tentative tax levy. Staff emphasized that annual levy increases accumulate over time and skipping a year of levy growth can create larger, less gradual impacts later. The board agreed to proceed with the notice schedule and the truth-in-taxation hearing already planned for June 24.
Next steps: Finance will publish the required legal notices, add supplemental explanatory language intended to reduce public confusion, and present the formal levy resolutions and a roll-call truth-in-taxation vote during the public hearing period.
