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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (49576)	3/6/2006 12:17:13 PM
From: MulhollandDrive	Read Replies (2) \| Respond to of 306849

i was just having a discussion with someone about this issue the other day, i have been hearing increasing rumblings about property tax assessments, obviously as the year end came to a close and individuals had to cut checks....my conversations were centered more around commercial property owners, but as this article reflects, the 'dark side' of inflated RE prices is beginning to bite if the arizona push for RE tax reform gets traction, other states could follow azstarnet.com Group pushing California-style property tax limits The Associated Press Tucson, Arizona \| Published: 03.03.2006 advertisementPHOENIX- A taxpayer's group fed up with the prospect of higher property taxes brought on by skyrocketing home values is collecting signatures for a ballot measure to bring California-style tax limits to Arizona. If the measure gets on the November ballot it would use property valuations from 2003 as the base for future tax bills. That would eliminate any tax increase from the higher home prices this year. The proposed law would limit taxes to 1 percent of the assessed valuation. "We're revolting against a tax system that is unfair, and we're going to fix that," said Marc Goldstone, a Bullhead City resident who is chairman of the Arizona Tax Revolt. The initiative drive is kicking off just as the property owners across the state receive new property valuations in the mail. More than 1.3 million valuation notices were sent out this week in Maricopa County, the first in two years. Western Arizona activists worked the Howard Jarvis Taxpayers Association in California to craft the initiative, borrowing much of the language of Proposition 13, approved by California voters in 1978. Goldstone is a former California resident who says he doesn't trust local governments to hold back their spending if more tax money is available. The new valuations will be used for new tax bills due in 18 months. Goldstone says he expects property taxes to rise as much as property values have. The ballot initiative would cap the combined tax rate for any property at 1 percent of its 2003 value. That puts taxes on a home valued at $150,000 three years ago at $1,500, regardless of the school district or city in which it was located. Tax rates now vary depending on the special district such as schools that have taxing authority. The initiative is similar to a proposed ballot item that state Sen. Ron Gould, R-Lake Havasu City, is promoting in the Legislature. Business groups pushing a property-tax cut in the Legislature are nervous about California-style limits coming to the state. "This would devastate local government," said Tim Lawless, president of the Arizona chapter of the National Association of Industrial and Office Properties. "It's not good public policy. You could have draconian impact fees for everything under the sun. Local governments will find a way to replace that money and perhaps in a more regressive way." The Arizona Chamber of Commerce and chapter of the National Federation of Independent Business also are skeptical.