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Why Coconino County will publish 'tax increase' notices even as the primary rate falls
Summary
Finance staff told the board that rising assessed values mean the county must post statutory notice of a tax increase even though the county’s primary tax rate will drop because levy ceilings are calculated differently than individual tax bills.
Coconino County finance staff told the Board of Supervisors on April 20 that state law requires publishing a notice when a county will collect more property tax dollars from the same set of parcels than it did in the prior year — even when the county’s tax rate declines.
Finance presenter Siri explained the arithmetic during the budget meeting: if assessed values on properties rise more than the 2% inflation allowance built into Arizona’s truth‑in‑taxation rules, the allowable levy can increase while the statutory tax rate falls. She summarized it this way: "we are collecting more taxes on the same properties that were taxed last year. Therefore, we have to post a tax increase." The county plans to post notices for the general fund and for several secondary districts, including the public health services and flood control districts.
Siri walked supervisors through a sample property used in county materials. Under the county manager’s FY27 recommendation, the sample house’s general‑fund tax would increase by about $36 a year after higher taxable values were applied even though the printed primary rate would be lower. The finance team said notices will explain the mechanics and clarify that the change reflects increases in assessed values rather than a higher tax rate.
What happens next: the county will publish the statutorily required notices, hold Truth‑in‑Taxation hearings on June 23 and adopt final rates in August if the board proceeds as staff recommended.
Context: Arizona’s truth‑in‑taxation framework limits growth in the property‑tax levy tied to existing properties to a 2% inflation adjustment plus measured new construction. Local assessed‑value changes, timing differences between full cash value and limited taxable value, and rounding produce combinations where the levy increases even as the published tax rate drops. Finance staff urged supervisors to use the standard notices to show taxpayers how the levy affects typical bills.
