MANY PEOPLE ASK:
Where Does the Money from my Property Taxes Go?
Properties are classified by use: commercial and residential. Commercial properties consist of all income producing properties from electric generating plants to a small mom and pop restaurant. Residential properties are rentals and owner occupied primary and non-primary homes and are valued by the county assessor. The Department of Revenue and County Assessor place two values on each property referred to as full cash and limited values. Both primary and secondary taxes will be levied against the limited value. •
Primary taxes are used to fund the operating budgets of the counties, cities, schools and community colleges.
Secondary taxes fund special district budgets (hospital, fire, library, water, street lights, and others), voter approved bonds and budget overrides. About 10-15 separate districts tax each property.
The limited value is factored by an assessment ratio set by the legislature to determine the assessed value which is the taxable value. The assessment ratio for residential properties has been 10 percent since 1973. The amount of tax is determined by the tax rates set by each tax district. The tax rate is calculated by dividing the tax district’s budget by the total limited assessed value in the district. That rate is applied to the assessed (taxable) value of each property to determine what share of each district’s budget it will pay.
On average, a home with a limited cash value of $250,000 would have a total property tax for 2016 of approximately $1,917.22. Of that tax amount, $1,056.92, or 55% of this estimated tax bill goes towards education. Properties used as a primary residence may be eligible for a modest State Aid credit for a portion of this amount. Continuing with this $250,000 home example, the General County Fund, used for the delivery of services to Maricopa County citizens, receives $350.23, and the Sanitary District receives $225.43. The remaining Special Districts amount of $172.84, or 9%, is made up of other items, such as water conservation, health, fire, flood control, and the library district. Voter-approved bonds for the Town of Fountain Hills are funded with $111.80 of this estimated bill, or about 6% of the total. Unlike many other communities, at this time, Fountain Hills has no primary property tax. Thus this bond amount is the only part of this property tax bill that goes directly to the Town of Fountain Hills.
Taxes for a $250,000 Home Town of Fountain Hills 6%
Town of Fountain Hills
Education/Schools Maricopa County
Sanitary District 12%
TAXES FOR A $250,000 HOME Education Schools
Sanitary District Town of Fountain Hills Other
Maricopa County 18%
Note: Education/Schools includes the Maricopa County Community College, East Valley Institute of Technology, Fountain Hills Unified Schools #98, and the State Equalization Tax.
Education/Schools Maricopa County Sanitary District
Town of Fountain Hills Maricopa Special Health District Maricopa County Flood Control District Central Arizona Water Conservation Maricopa County Library District Fire District Assistance
Composition of Property Tax
Fountain Hills Community Services
January – April