Using California’s famous Proposition as a model, The Prop 13 initiative will attempt to cap the total tax rate at 0.5% for all residential property and 1.0% for all other real property. Valuations will be based on purchase price for properties purchased on or after January 1, 2004. This new initiative would eliminate tax evaluators from the process. Older properties purchased before that date will use the County Assessor’s 2003 Full Cash Value for tax calculation purposes until the property is sold and a new purchase price established. Valuation increases are limited to no more than 2% per year. There are no exceptions to the tax caps.
The same group failed to get the initiative onto the ballet in 2010, but feels confident they will have no problem finding the 230,046 signatures needed.
Prop 13 Arizona also added a new provision modeled after California’s Proposition 8 from 1978. When the market value of a property falls below its purchase price, the owner can file a Decline-In-Value appeal with their County Assessor. After a reduction is granted, the property value rises with the market but cannot exceed purchase price plus the 2% maximum annual inflation adjustment.
The election will be held November 6th 2012.