Property Tax Question

Should the Town of Gilbert lower the property tax rate? They are talking about that issue at the moment, and the AZ Republic has a pretty good summary of the questions today:

Gilbert's elected leaders are weighing whether to reduce the town's property tax rate or leave it where it stands in the face of rising property values.

A public hearing and council vote on the matter is scheduled for Tuesday.

The issue arose from sharp increases in assessed home values, which has equated to Gilbert residents paying more in property taxes despite no property tax increase from the town.

For residents living within the Gilbert Public Schools boundaries, the town accounts for about 10 percent of a total property tax bill. The taxes, which are $1.15 per $100 of secondary assessed value, go toward paying off bonds for road construction and other projects.

For example, the 2007 property taxes on a $395,000 home are $454.25, according to a staff report.

Mayor Steve Berman and Vice Mayor Dave Crozier both stated publicly that they back a property tax cut because of the tax windfall Gilbert is enjoying. Councilman Don Skousen also has expressed a desire to bring the rate "down some."

However, council members Steve Urie, Les Presmyk and Joan Krueger have stated they're against a cut, particularly because of uncertainty surrounding home values that could affect the town.

Incoming council member Linda Abbott appears to be a key swing vote. Councilman Larry Morrison, whose council term ended last week, was a fourth member who opposed cutting the rate.

Abbott said she wants to learn more about the financial aspects before making a decision.

The council has reduced the property tax rate twice in the past decade.

I asked The Mister his views on the subject. He doesn't have strong feelings one way or the other, mainly because the tax is already one of the lowest around. He is a student of human nature, and pointed out that the rising property valuations of recent years have been fun, but now values are stabilizing again. It would be fine to reduce the tax by five cents now, but in 5 years or so when it might need to be raised again, folks won't be so amenable. That makes sense.

I guess we'll know which way it will go on Tuesday.