As part of its FY 2014 Budget process, the City is considering an increase in the primary property tax.
The City of Prescott assesses two types of property tax: (1) primary property tax, which is used for general governmental operations including public safety and; (2) secondary property tax, to pay debt service on voter-approved projects (each issue has a specified end date). The City's current secondary property tax pertains to debt issued in 1998 for the purchase and development of Watson and Willow Lakes. The majority of this debt will be retired July 1, 2013. As such, although the primary property tax is proposed to be increased per the notice below, the total estimated primary and secondary tax payable for a home with an assessed value of $100,000 will decrease from $48.32 to $31.08. The Truth in Taxation Notice of Public Hearing is provided below in its entirety:
In compliance with Section 42-17107, Arizona Revised Statutes, the City of Prescott is notifying its property taxpayers of the City of Prescott's intention to raise its primary property taxes over last year's level. The City of Prescott is proposing an increase in primary property taxes of $410,148 or 37.0%.
The proposed tax increase will cause the City of Prescott's primary property taxes on a $100,000 home to increase from $21.78 to $29.84.
This proposed increase is exclusive of increased primary property taxes received from new construction. The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides.
All interested citizens are invited to attend the public hearing on the tax increase that is scheduled to be held on Tuesday, June 25, 2013, at 3:00 p.m. in the City Hall Council Chambers at 201 South Cortez, Prescott, Arizona.