Arizona voters have passed a referendum to impose a cap on property tax increases.
Proposition 117 stipulates increases could not exceed 5 percent over the value for the previous year, beginning with the 2015 tax year. [Read the full proposition]
"Eliminating the tax on market value will prevent a repeat of the dramatic increases in property taxes that occurred between 2004 and 2009 when real estate values skyrocketed," said David Minard, treasurer of the Arizona Tax Research Association in Peoria.
Supporters said Arizona has one of the most complicated property tax systems in the country and passage of the measure will provide greater predictability for both government and taxpayers.
Opponents said Proposition 117 does nothing to limit Arizonans' property tax bill or annual tax increases.
"Prop 117 just pretends to offer property tax relief or reform," said Lynne Weaver, chairman, Prop 13 Arizona. "It lacks any restraint on tax rate increases so does nothing to curb how much money taxing districts can collect from you. It still allows the addition of new taxing districts, more debt, and higher tax 'overrides' to your bill."
Passage will amend Article IX, Section 18, of the Arizona Constitution.
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