Property tax rate to increase as property values drop

Property taxes are due on May 1, and Yuma County wants taxpayers to understand the process. In order to keep next year's levies at the same level as this year's, the rate will have to increase to keep up with another drop in property values. In other words, according to information from Yuma County: • To collect the same $22.3 million amount in primary property taxes, Yuma County would need to adjust the primary tax rate from $1.87 to $2.06. • The qualifying tax rate for high school districts, which is based annually on statewide assessed values, will climb from $1.98 to $2.12. • The state equalization rate, which ensures equal resources for all schools, will climb from 42 cents to 51 cents. The county says the median sale prices for local homes is on the rise and that the housing market started to rebound last year. However, there is a two-year lag between market conditions and the application of those conditions on the next assessed value of property. This means that net assessed values for property taxes should see a leveling off or increase in tax year 2014. The tax process starts with the county assessor, who determines the value of property generally based on real estate market activity. Then municipalities estimate a budget for the coming fiscal year. For school districts, local taxpayer contribution varies with the amount of funding provided by the state general fund – when the state funds less, local taxpayers take up the slack. The county superintendent of schools reviews the school districts' proposed budgets. Taxing authorities hold public hearings over the summer to take taxpayer input. Tax rates are adopted by the board of supervisors for county taxing authorities and school districts. The amount of any given bill depends on the assessed value of the property and the combined tax rate, which can vary by geographic location (for example, what school district the property is located within). When taxes come due, the county treasurer collects. Nov. 1 and May 1 are the semi-annual due dates. A tri-fold brochure explaining the process is available on the county website at www.yumacountyaz.gov/taxpage.