The Navajo County Community College District Governing Board will conduct Truth in Taxation and Budget public hearings on Tuesday, May 17, 2016, beginning at 10 a.m. (M.S.T.), in the Tiponi Community Center on the Holbrook – Painted Desert Campus, 2251 E. Navajo Blvd.
The approved 2016-2017 budget, as adopted by the Governing Board, proposes increasing the Primary Tax Levy by two percent, pursuant to A.R.S. §42-17051. Based on Navajo County's overall declining property valuations, the Primary Tax Rate per $100 Net Assessed Valuation will increase. The laws governing the tax levy require the reporting of the increase in two different ways:
|Rate/$100 Net Assessed Valuation||$1.7884||$1.7423||$0.0461||2.6%|
|Proposed Max Levy||TNT Levy||Dollar Increase||Percent Increase|
|Max Levy vs. TNT Levy||$14,361,969||$14,080,897||$281,072||2.0%|
|Rate/$100 Net Assessed Valuation||$1.7884||$1.7534||$0.0350||2.0%|
Net Assessed Valuation
Each year the Navajo County Assessor's Office, in conjunction with the Property Tax Oversight Commission, determines the value of the property in the county. The assessed values are then used as a basis for levying the primary property tax by different taxing jurisdictions.
Overall valuation of Navajo County real property continues to decline. Due to real property values dropping, property tax owners will see an increase in property tax rates in order to maintain tax levies at or near the same level as the current tax year.
Tax base increases, tax rate decreases, revenue increases
Tax base decreases, tax rate increases, revenue decreases
Frequently Asked Questions:
Q. What is assessed valuation and who determines them?
A. The assessment of property within the county is used as a basis for levying property taxes.
There are two categories of real property – locally-assessed and centrally-assessed – and the values are determined by two different offices.
- Locally-Assessed: The Navajo County Assessor's Office determines the value of property within the county, including commercial and farm buildings and residential homes.
- Centrally-Assessed: The Department of Revenue determines the value of certain types of property within the county, such as utilities (including power plants and transmission lines), railroads and mines.
Q. How does assessed valuation relate to my taxes and the college's budget?
A. Each year the Navajo County Assessor's Office provides NPC with the value of the property within the county. The assessed values are then used as a basis for levying property taxes. NPC uses the levy amount from property taxes and other revenue sources to develop its annual budget. Property taxes contribute over 40 percent of all funding for the college.
Q. Why did my property tax rate go up?
A. Due to property values declining, property owners may see an increase in property tax rates in order to maintain tax levies at or near the same level as the current tax year. As assessed values decline, the tax rate increases in order to maintain tax levy (revenues) at or near the same level as the current year.
Q. How does the college use the property tax money?
A. The college uses the funding from property taxes for operating and maintenance expenses. The largest expense to the college is salaries/wages and benefits for its employees – it makes up approximately 70% of total expenses. The college provides educational services to its students, so naturally the largest cost is its people — faculty and staff involved in teaching and providing educational services.
Q. What limits exist for taxing jurisdictions?
A. The Property Tax Oversight Commission was established in January 1988. They are responsible to further the public confidence in property tax limitations, provide a uniform method for determining property tax limitations, and provide a continuing review of practices for ensuring a fair and equitable administration of the laws.
The Arizona Revised Statutes also has Truth in Taxation laws to address transparency and provide opportunities for public comment. If the proposed primary tax levy amount, excluding amounts attributable to new construction, is 2% greater than the amount in the previous year, NPC must go through a "Truth in Taxation" hearing.
Q. What is equalization funding and how does it impact my property tax?
A. Equalization funding is additional state aid to rural community college districts with property tax bases that are less than the minimum assessed value established by a state formula. It is essentially a subsidy provided by the state. In order for NPC to retain this subsidy, state leaders expect Navajo County taxpayers to provide the maximum support for the college through the local property tax levy.
Q. Are there any exemptions for taxpayers?
A. The Arizona statutes provide for exemption for widow and widowers and people with disabilities in varying dollar amounts. Requests for exemptions should be addressed to the Navajo County Assessor's Office.
Q. What if I don't qualify for an exemption but think my property values are too high?
A. Taxpayers are able to file a petition disputing the value of their property. The "Petition for Review of Valuation" is filed with the Navajo County Assessor's Office.
You may use the form below to submit your comments, or request clarification on the proposed tax rate, tax levy, or proposed budget.