The proposed budget includes a primary property tax levy of $15,329,552, an increase of $1,955,990 from last year's levy. However, the primary property tax rate is expected to decrease from $1.6513 to $1.6077 per $100 assessed value. The increase is due to increasing property valuations calculated at the county level.
State Statute
Under Arizona's tax laws, property tax levies are divided into primary and secondary categories. Primary property taxes cover general city services, while secondary property taxes pay off voter-approved bonds. The primary tax levy can increase by up to 2% over the previous year's allowable levy, plus any additional amount due to new properties added to the tax rolls.
In 2006, changes to the legal limit calculation for primary property tax levies were enacted, resetting the base year for calculations from FY 79-80 to FY 05-06. Any city that wishes to introduce a primary property tax must get voter approval in a May election, and the city or town council cannot override the levy limit set by voters.
The Property Tax Oversight Commission, established in 1988, monitors cities' and towns' compliance with these levy limits. Cities must notify the Commission within ten days of agreeing or disagreeing with the final levy limit calculations.
Truth in taxation
The Truth in Taxation (TNT) legislation also requires cities to hold public hearings and publish notices if the proposed primary property tax levy exceeds the previous year's levy, excluding new construction amounts. This legislation ensures transparency and public involvement in decisions about tax increases.
The proposed levy for Buckeye's FY 24-25 budget is $300,247.00 above the TNT amount, increasing primary property taxes by $3.15 per $100,000 of assessed home value.
For further information, contact Buckeye City Hall at (623) 349-6000 or visit the City’s website
