Arizona Legislation Limiting Property Valuation Increases Approved by Voters

Desert Property Investor yesterday afternoon took an interest in a referendum limiting Arizona property valuation increases annually.

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Mesa, Arizona (PRWEB) November 22, 2012

Citing a report in Tucson Sentinel online, Desert Property Investors concluded that the will of Arizona voters was made clear, in terms of a preference for simplification of a complicated real estate tax code over any potential revenues lost to municipalities.

Editors of the Desert Property Insider concurred with statements made by Kevin McCarthy, president of the Arizona Tax Research Association, insisting a simpler property tax system is crucial for restructuring Arizona and mesa property management, especially with respect to property investment opportunities and avoiding roller coaster fiscal spikes and crashes which characterized the real estate bubble heading into the sub prime mortgage crisis of 2008. Desert Property Investors noted that previously in Arizona, property tax assessments were conducted using a "two tiered approach" -- i.e., "Market Value" vs. "Limited Property Value," which operate at a kind of cross purposes, causing in bull markets wild fluctuations in the difference between the two values, which can be exploited by speculators.

Arizona voters recently issued a mandate through Proposition 117, demanding that property tax valuation increases be capped at 5 per cent per annum. This change to the code, its supporters insist, will stabilize the system of revenue collection, as well as simplifying an Arizona property tax system which was previously one of the most complicated in the country.

Speculators, in economics, is a term for individuals and "market makers" who seek profits by exploiting margins (often steep) between "perceived vs. actual value.

Desert Property Investors tentatively supports the mandate currently arrived at by Arizona voters, who, through Proposition 117, demanded that the state tax system place an annual 5 per cent "cap" on property valuation increases.

About Desert Property Investor:
Desert Property Investor evaluates opportunities, pitfalls, services, and legislation related to the investment in property in the California, Arizona and Nevada deserts.


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