Tempe residents, brace yourselves for a property tax bump. The City of Tempe has laid out plans to modestly increase its property tax rate for the fiscal year 2024/25, going from $2.4065 to $2.4291 per $100 of assessed value, as published on the city's official website. This move is set to ultimately raise the overall levy on existing properties by 3.3%. It's not just the city looking to get a bigger slice of your paycheck; schools and the county already take the lion's share of your property taxes, with the city's cut about 22% of your total bill.
The hike is part of a "Truth in Taxation" notice, required by Arizona law, which focuses solely on the primary property tax levy used for general city services. In a lighter vein, the secondary property tax, earmarked for capital improvements, promises to remain steady, collecting only enough to meet annual payments on voter-sanctioned bonds. Tempe's taxpayers were first to see this notification when it appeared in the Arizona Republic, and they will be able to put their two cents in during a public hearing slated for June 6, 2024, at 6 p.m. at the City Council Chambers.
In the brunt of this increase, owners of a $100,000 property in Tempe will need to shell out $87.47 for the city's primary property taxes, up from an even leaner $85.75—a $1.72 jolt to the wallet. It's a pointed reminder that the proposed 2.0% rise, which translates to an extra $437,311 in city coffers, doesn't include tax revenue from new construction or changes due to voter-approved bonds or tax overrides. With a laser focus on transparency, the city is making efforts to ensure citizens are fully aware of where their money is going and why.
Concerned parties or those with questions can reach out to the City of Tempe Municipal Budget Office, or buckle down and attend the upcoming hearing, where issues can be aired out in public discourse. Full details of the event and the tax hike are available on the city's website, for those looking to get the whole picture before speaking—or spending—their piece.
