📢 Overview
The City of Phoenix has announced a proposed 1.22% increase in primary property tax revenue for the fiscal year 2025–2026. This adjustment is attributed to rising property valuations rather than a change in the tax rate itself. The primary property tax rate will remain at $1.2658 per $100 of assessed valuation, unchanged from the previous fiscal year.
For a homeowner with a property assessed at $100,000, this means an increase of approximately $1.53 annually, raising the total primary property tax from $125.05 to $126.58.
📅 Public Hearing Scheduled
A Truth in Taxation public hearing is scheduled to discuss the proposed tax increase:
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Date: June 18, 2025
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Time: 2:30 p.m.
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Location: Phoenix City Council Chambers, 200 W. Jefferson St.
Residents are encouraged to attend and provide input on the proposed changes.
💰 Breakdown of Tax Rates
Primary Property Tax
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Rate: $1.2658 per $100 of assessed valuation
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Purpose: Funds essential city services, including police, fire protection, parks, libraries, and community centers.
Secondary Property Tax
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Rate: $0.8141 per $100 of assessed valuation (unchanged)
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Purpose: Covers bonded debt service for infrastructure projects like libraries, police and fire stations, storm drains, and parks.
📈 Factors Influencing the Increase
The proposed increase in primary property tax revenue is primarily due to:
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Rising Property Valuations: As property values increase, the amount of tax collected at the same rate also rises.
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New Construction: Additional properties added to the tax roll contribute to higher overall tax revenue.
It's important to note that the tax rate itself is not increasing; the higher revenue is a result of increased property assessments.
📊 Impact on Homeowners
While the percentage increase is modest, homeowners may notice a slight uptick in their annual property tax bills. For example, a home assessed at $100,000 will see an increase of approximately $1.53 annually in primary property taxes.
Individual experiences may vary based on specific property assessments and any changes in valuation.
📝 Conclusion
The City of Phoenix's proposed property tax revenue increase aims to support essential services without altering the existing tax rates. Residents are encouraged to participate in the upcoming public hearing to voice their opinions and gain a deeper understanding of how these changes may affect them.
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