Howard Jarvis - Now More Than Ever!

There is a firestorm about to engulf the PHX area... a firestorm of tax increases that will make other problems trifle in comparison. The basic formula used by tax assessors across our great land is simple: X times Y = Z. Let's call X the tax rate. We'll call Y the Assessed Valuation. The product of this formula (Z) is the tax you pay. This is all nicely explained (in many more words, and graphics) on the back of your tax notice.

Our local elected officials & tax assessor folks will gladly proclaim that they did not raise your tax rate this year. Or last year, or the year before. They did not change the X portion of the tax formula. Okay Pat, where's the rub? What is the problem? Well, the formula has two factors - rate, and value. The value assigned by the tax man is going up! UP A LOT! For home values to rise is normal, and most of us like it. What we paid for last year, is worth more this year. And so on... The trouble this time around is that values have jumped quite a bit, and the taxing authorities have jumped the values even more. While most of us have come to accept that the "hot" market of 2005 is gone, and there is a "morning after" to deal with, the tax formula is about to slap each of us silly with a 55% - 60% bump in the tax owed. In my 22 years as a Realtor & property taxpayer, I've seen normal increases (and the occasional decrease) in taxes owed of 3%, 5%, even 7%. Nothing too flagrant or painful. Not this time! While the 2007 tax bills are not out yet, the projections I've seen are in the 58% range, with some even higher - 60+%... This is going to come to a head in Sept. '07 when the tax bills are mailed. Most bills go to a mortgage company, with a copy going to the homeowner. The mortgage folks just pass on the tax, in the form of higher mortgage payments.

What can you do? Well, never one to point to a problem without offering a solution, here is mine. Go to http://www.maricopa.gov/ and look up your property profile. Use Advanced Search to plug in your address. Print out a copy and review for accuracy. Get last years' tax notice, and get acquainted with the formula. Remember that assessed value will be different than market value. (The tax folks like it this way, so you must overcome the initial response from them, "Is your home worth more or less than this number?"). Look for the information on appealing your tax bill. This is where you'll crawl into the rabbit hole of government... While you are online, visit http://www.hjta.org/ which is a website devoted to taxpayer assistance, named after Howard Jarvis, the tax crusader from California. Additionally, I would be happy to print out a more detailed report available to Realtors through our tax service subscription, and gather a few comparable sales for you. These will be your leverage in appealing your taxes, should you decide to do so. The time window is narrow, and you must move quickly. Again, this is by design. While I can not guarantee you success, if enough people fight this, the message will be heard...