Alliance Management Group. Tax Year 2012 Update

Transcription

1 Alliance Management Group Tax Year 2012 Update

2 Part I: Overview

3 How is Your Real Property Valued? The Assessor is mandated by Arizona State Statute to value property at its Full Cash (Market) Value. Full Cash Value is the basis for assessing, fixing, determining and levying secondary property taxes.

4 Sales Comparison It is also known as Market. This method compares your property to other similar properties that have recently been sold. This method is used mostly for homes and land.

5 Income The Income Method is based on the income potential of the property. Using operating Income and Expense Data supplied by the owner, the value is determined by capitalizing the potential net income. This valuation method is primarily used on commercial properties.

6 How is Your Real Property Taxed? Tax Rates are set by all budget authorities and are separated into two types. Primary Rates are set by governmental entities such as counties and cities and towns. They are applied to the limited value to determine taxes due. These taxes are used for the basic expenses of government and schools Secondary Rates are set by special districts, fire districts, and bond issues. Usually taxpayers vote for these districts and bonds, so the rates are applied to the Full Cash Value to determine taxes due.

7 Estimate a Tax Bill Limited Value (statutory calculation) used for primary tax rates $100,000 x 10% = $10,000 assessed value $10,000 value x $ tax rate = $ (primary tax) Full Cash Value (market value) used for secondary tax rates $100,000 x 10% = $10,000 assessed value $10,000 value x $ tax rate = $ (secondary tax) Total taxes due = $1,005.36

8 Notice of Value Information

9 When Do I File an Appeal? If you believe the Full Cash Value on your Notice of Valuation is higher than actual Market Value or the Legal Class is incorrect according to current use, you will want to file a Petition for Review, DOR The Notice of Valuation is mailed prior to March 1 st. This valuation is used for the next calendar year s tax computations.

10 Statutory Appeal Process Level 1 Appeal to Assessor Property Owner may make a request to meet with the Assessor informally Level 2 Appeal to the BOE Level 3 Appeal to Tax Court

11 Overview: Flagstaff Area Valuation Trend Data $1,500,000,000 $1,400,000,000 $1,300,000,000 $1,200,000,000 $1,100,000,000 $1,000,000,000 $900,000,000 $800,000,000 $700,000, Year Valuation History Limited Property Value (Primary) Full Cash Value (Secondary) FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 *FY14 Limited Property Value (Primary) 7% 8% 9% 11% 12% 10% 5% -6% -3% -19% Full Cash Value (Secondary) 9% 8% 12% 19% 20% 4% -5% -11% -4% -19% *Projected

12 Overview: Flagstaff Area Valuation Trend Data Limited Property Values Increased by 82% between FY04 and FY11 Value Increases & New Construction Projected Total 12% decline FY11-FY14 Full Cash Values Increased by 97% between FY04 and FY10 Value Increases & New Construction Projected Total 21% decline FY10-FY14 Limited Property and Full Cash Values are within 1% of each other for FY13 & FY14

13 Overview: Sample Tax Bill

14 Part 2: Agency Information CCC FUSD City of Flagstaff Coconino County Summit Fire District Highlands Fire District

15 Coconino Community College 15

16 Coconino Community College: Primary Property Taxes General Fund Levy for College Programs (Instruction, Academic Support, Student Services, Institutional Support, and Facilities) Levy is capped at 2% growth + new construction Evaluation FY 2012 FY 2013 Change Assessed Value $ 1,808,850,474 $ 1,747,818, % Primary Tax Rate % Primary Tax Levy $ 6,600,495 $ 6,772, % Coconino Community College has the lowest primary property tax rate of all Community Colleges in the State of Arizona 16

17 Coconino Community College: Secondary Property Taxes $25 Million Debt Service for 20-year bonds used for the construction of Lone Tree and Williams buildings and expansion of Page Campus Debt Services complete in FY 19 Evaluation FY12 FY13 Change Assessed Value $ 1,840,142,610 $ 1,759,609, % Secondary Tax Rate % Secondary Tax Levy $ 1,996,555 $ 1,851, % 17

18 Coconino Community College: Property Tax Summary For all properties in the City of Flagstaff, the average change for Community College property taxes is a levy increase of $.9465 or 8% Average Value FY12 FY13 Change Average Primary Value $ 238, $ 232, % Average Secondary Value $ 243, $ 232, % CCC Tax Rates FY12 FY13 Change Average Taxpayer Impact Primary - General Fun $ Secondary - Debt Service $ (1.9510) Total $ *Average Taxpayer Impact on owner occupied residential (class 3) properties only 18

19 Flagstaff Unified School District

20 Flagstaff Unified School District #1 Comparisons of Overall Budgets FY 2011, 2012, & FY 2013 Budget Area FY 2011 Amt. FY 2012 Amt. FY 2013 (Est.) I. Total M&O Budget $67,800,000 $63,600,000 $60,300,000 II. Vocational JTED Fund (596-Tchr cost only) 400, , ,000 III. Prop 301 Funds 1,200,000 1,400,000 1,650,000 IV. Instructional Improvement Fund 400, , ,000 V. Major Federal Grants 7,000,000 4,750,000 4,000,000 VI. Capital Outlay Budgets A. Unrestricted Capital Outlay (610) 3,800,000 3,500,000 2,700,000 B. Capital Outlay Override (611) 2,700,000 2,200,000 1,500,000 C. Soft Capital (625) 800, , ,000 VII. Adjacent Ways 900, , ,000 Sub Total for General & Capital Outlay $85,000,000 $77,340,000 $72,100,000 VIII. Debt Service 4,300,000 5,300,000 5,050,000 Grand Totals $89,300,000 $82,640,000 $77,150,000

21 Flagstaff Unified School District #1 History of State Equalization Aid to FUSD $23,412,679 $23,375, % 46.1% $25,400, % $27,790, % $25,014, % $22,637, % $14,078, % $9,800, % $7,000, %

22 Flagstaff Unified School District #1 State Qualifying Tax Rate History FY $4.5 $4.0 $3.5 $ $2.5 $2.0 $1.5 $1.0 $0.5 $ Qualifying Tax Rate (QTR)*

23 Flagstaff Unified School District #1 Tax Rate Projections - Primary & Secondary - for August 2012 Levy (FY 2013) Tax Rate Categories FY 2012 Tax Rates FY 2013-Projected Tax Rates Projected Differences Primary Tax Rates: Maintenance & Operation $ $ ($0.0910) Unrestricted C.O. $ $ $ Soft Capital $ $ $ Adjacent Ways $ $ $ Total Primary Tax Rate $ $3.6641* -($0.0677) Secondary Tax Rates: Overrides $ $ ($0.0002) Debt Service $ $ ($0.0067) Total Secondary Tax Rate $ $ ($0.0069) Totals for FUSD Primary & Secondary Tax Rates $ $ ($0.0746) *Homeowners who have a primary residence elsewhere in Arizona will lose the homeowner's rebate for taxes in FY 2013.The affidavit sent out to second homeowners requires that they select a primary residence, so many of these owners could see an increase in their property taxes of up to $600.

24 Comparison of FUSD TAXES for FY2011, FY 2012 and FY 2013 Taxes $100,000 House-2011 $$100,000 -House 2012 $100,0000-House 2013 Tax Tax Tax FUSD Tax Type Rate Taxes Rate Taxes Rate Taxes FUSD Primary Tax $3.63 $ $3.73 $ $3.66 $ FUSD Secondary Tax $1.05 $ $1.21 $ $1.21 $ Total Rates and Taxes $4.68 $ $4.94 $ $4.87 $ If House Decreases in Value: If House Decreases in Value by 1% in FY 2013, the property value would be $99,000 and the total taxes for FUSD would be $482 or a decrease of $5.00. *School Districts are limited by State government to a regulated budget capacity/spending authority. Budget capacity is supported by cash from State aid and property taxes. Cash balances are important in setting each year's levy. 24

25 City of Flagstaff 25

26 City of Flagstaff: Primary Property Taxes General Fund Levy for City Services (including: Police, Fire, Parks, Recreation, City Court, Administration, Management Services ) Levy is capped at 2% growth + new construction Council decision to keep Levy flat. FY 2012 FY 2013 Change Value $ 780,015,901 $ 756,630,966-3% Rate % Levy $ 5,395,370 $ 5,395,535 0% Average Impact = $0.00 increase per $100,000 of FY12 Value (Excludes New Construction) 26

27 City of Flagstaff: Secondary Property Taxes Debt Service Obligations Water, Sewer, Lighting, Open Spaces, Recreation, and Fire Facilities (20%) Other General Obligation Debt (6%) FY 2012 FY 2013 Change Value $ 791,371,939 $ 760,991,213-4% Rate % Levy $ 6,620,618 $ 6,366,452-4% Average Impact = $9.36 decrease per $100,000 of FY12 Value (Excludes New Construction) 27`

28 City of Flagstaff: Property Tax Summary For owner occupied residential properties in the City of Flagstaff, the average change for City property taxes is a levy decrease of $9.26, or -2.1% based on average property values. FY 2012 FY 2013 Change Average Primary Value $ 286,500 $ 277, % Average Secondary Value $ 291,288 $ 280, % Tax Rate City Taxing Authority FY 2012 FY 2013 Change * Average Taxpayer Impact Primary Property Tax $ - Secondary Property Tax $ (9.26) Total: City Taxing Authority $ (9.26) *Average Taxpayer Impact on owner occupied residential (class 3) properties only 28

29 City of Flagstaff: Property Tax Summary For demonstration purposes only. Impact on a $100,000 home valued in 2012 with comparisons to change in proposed rates and home value changes. $100,000 Property in 2012 $100,000 Property in 2013 City Taxing Authority Rate Taxes Rate Taxes Primary Property Tax $ $ Secondary Property Tax $ $ Total: City Taxing Authority $ $ Increase $ 2.14 If Property Decreases in Value by 1% ($99,000) $ Change $ (0.59) *Average Taxpayer Impact on owner occupied residential (class 3) properties only 29

30 Coconino County

31 Coconino County

32 Property Tax Disbursement The Coconino County Treasurer is responsible for collecting taxes on behalf of all taxing jurisdictions in the County. Fire Districts 10% Other Special Districts 8% Coconino County Primary Levy 5% Public Health Service District 3% Cities 9% Pie chart is based on FY12 levy data Education 65%

33 Coconino County: Primary Property Taxes General Fund Levy for County Services (Sheriff, Parks and Recreation, Superior Court, County Attorney, Public Defender, Probation) Levy is capped at 2% growth + new construction Primary FY12 FY13 Change Value $ 1,808,850,474 $ 1,747,818, % Rate $ $ % Levy $ 7,783,484 $ 7,830, % Average Impact = $0.26 increase per $100,000 of FY12 Value Coconino County has the second lowest primary property tax rate of all Counties in the State of Arizona

34 Coconino County: Secondary Property Taxes Library District County-wide, funds library operations No rate or levy restrictions Library District FY12 FY13 Change Value $ 1,840,142,610 $ 1,759,609, % Rate $ $ % Levy $ 4,355,618 $ 4,164, % Average Impact = $1.04 decrease per $100,000 of FY12 Value

35 Coconino County: Secondary Property Taxes Public Health Services District County-wide, funds public health services $0.25 rate limit Public Health Services District FY12 FY13 Change Value $ 1,840,142,610 $ 1,759,609, % Rate $ $ % Levy $ 4,600,357 $ 4,399, % Average Impact = $1.09 decrease per $100,000 of FY12 Value

36 Coconino County: Secondary Property Taxes Flood Control District Excludes incorporated Flagstaff, Page, Fredonia $0.50 rate limit Flood Control District FY12 FY13 Change Value $ 793,804,431 $ 744,387, % Rate $ $ % Levy $ 3,175,218 $ 2,977, % Average Impact = $2.49 decrease per $100,000 of FY12 Value

37 Coconino County: Property Tax Summary For all properties in the City of Flagstaff, the average change for County property taxes is a levy increase of $0.66, or.2% For properties in other incorporated and unincorporated areas, the average change for County property taxes is a levy decrease of $7.14, or -3% Class 3 Property Changes FY12 FY13 Change Average Primary Value $ 238,800 $ 232, % Average Secondary Value $ 243,700 $ 232, % Tax Rate County Taxing District FY12 FY13 Change General Fund Primary $ $ $ Library District $ $ $ - Public Health Services District $ $ $ - Subotal: County-wide Districts $ $ $ Flood Control District $ $ $ - Total: All County Districts $ $ $

38 Other Taxing Jurisdictions Property Tax Summary FDAT State required formula, dependent upon Fire District levies County-wide Maximum rate = $0.10 Expect slight drop in levy State Equalization State required rate 11% rate increase for FY13 JTEDs Statutory rate of $0.05 Expect drop in levy = drop in property value

39 State Aid to Education (Homeowner s Rebate) Owner Occupied Residential Properties (Class 3) Credit of up to $600 (tax reduction) Formula to determine credit rate FY12 formula = Lesser of 40% of School District Primary Tax Rate or 40% QTR up to $600 credit FY13 formula = Lesser of 40% of School District Primary Tax Rate or 40% QTR up to $600 credit Estimated Rebate = For a house appraised at $100,000 ($10,000 Assessed Valuation) the homeowner would receive a $ tax credit reduction for FUSD s Primary Tax Levy

40 State Aid to Education (Homeowner s Rebate) HB2001 (Special Session) Changes which homeowners qualify for State Aid to Education beginning tax year 2012 Properties no longer receiving State Aid to Education Bank owned and corporate owned Secondary Residences (vacation homes) Properties that will receive State Aid to Education Primary Residences as declared by homeowner Residences occupied by immediate family members per ARS Loss of State Aid to Education homeowners will increase their total tax bill to the same amount of a property that is residential rental City of Flagstaff $489; Summit FD $383; Forest Highlands FD $399 See examples at the end for tax increase detail Creates multiple new mailing and filing requirements and additional appeal rights for the homeowner Additional time and resources will be required by the Assessor to administer

41 Part 3: Property Tax Projections For properties located in the following taxing areas: City of Flagstaff Highlands Fire District Summit Fire District

42 Tax Rates by Taxing Area The following slides show sample tax assessments based on the typical property by taxing area. The average value changes by taxing area. The chart below shows the tax rates that would apply in each Flagstaff area jurisdiction. FY13 Projected Rates Location Primary Secondary Total Rate City of Flagstaff $ $ $ Summit Fire District $ $ $ Highlands Fire District $ $ $

43 Tax Levy by Taxing Area Assessed values changed by area as well. The chart below shows the average change in total tax levy for a home that was valued at $200,0000 in FY12 by various location. The net tax levy will change for each property based on change in value and change in area tax rates Projected Levy: $200,000 Home Value (FY12 Value) Location FY12 FY13 Change City of Flagstaff $ 1,618 $ 1,694 $ 76 5% Summit Fire District $ 1,756 $ 2,086 $ % Highlands Fire District $ 1,718 $ 2,054 $ % Excludes State Aid to Education Homeowner s Rebate which would result in a $ reduction for a home value of $200,000/

44 Tax Year 2012 (FY2013) Property Tax Projection: Property Located in the City of Flagstaff FY12 FY13 Change Primary Value $ 235,123 $ 229,755-2% Secondary Value $ 236,373 $ 230,185-3% FY12 Tax FY13 Tax Change Primary Taxing Jurisdictions: Coconino County General Fund $ 101 $ 103 2% State Education Equalization % Flagstaff Unified School District % Coconino Community College % City of Flagstaff % Total Primary $ 1,367 $ 1,306-4% Secondary Taxing Jurisdictions: Library District $ 56 $ 54-3% Fire District Assistance Tax % Public Health Service District % Flagstaff Unified School District % Coconino Community College % Joint Vocational Tech Institute % City of Flagstaff % Total Secondary $ 660 $ 641-3% Combined Total $ 2,027 $ 1,947-4% State Aid to Education $ (367) $ (360) -2% Net Tax Assessment $ 1,660 $ 1,587-4%

45 Tax Year 2012 (FY2013) Property Tax Projection: Residential Property Located in the Highlands Fire District FY12 FY13 Change Primary Value $ 282,000 $ 272,694-3% Secondary Value $ 286,300 $ 276,852-3% FY12 Tax FY13 Tax Change Primary Taxing Jurisdictions: Coconino County General Fund $ 121 $ 122 1% State Education Equalization % Flagstaff Unified School District 1, % Coconino Community College % Total Primary $ 1,444 $ 1,356-6% Secondary Taxing Jurisdictions: Library District $ 68 $ 66-3% Fire District Assistance Tax % Public Health Service District % Flagstaff Unified School District % Coconino Community College % Joint Vocational Tech Institute % Coconino County Flood Control % Highlands Fire District % Total Secondary $ 1,520 $ 1,467-3% Combined Total $ 2,964 $ 2,823-5% State Aid to Education $ (440) $ (427) -3% Net Tax Assessment $ 2,524 $ 2,395-5%

46 Tax Year 2012 (FY2013) Property Tax Projection: Owner Property Located in the Summit Fire District FY12 FY13 Change Primary Value $ 270,700 $ 251,751-7% Secondary Value $ 274,750 $ 255,517-7% FY12 Tax FY13 Tax Change Primary Taxing Jurisdictions: Coconino County General Fund $ 116 $ 113-3% State Education Equalization % Flagstaff Unified School District 1, % Coconino Community College % Total Primary $ 1,386 $ 1,252-10% Secondary Taxing Jurisdictions: Library District $ 65 $ 60-7% Fire District Assistance Tax % Public Health Service District % Flagstaff Unified School District % Coconino Community College % Joint Vocational Tech Institute % Coconino County Flood Control % Summit Fire District % Total Secondary $ 1,453 $ 1,395-4% Combined Total $ 2,839 $ 2,646-7% State Aid to Education $ (422) $ (394) -7% Net Tax Assessment $ 2,417 $ 2,252-7%