Property taxation measure on ballot has limited effect

If you want to start an argument, bring up the issue of property taxes.

There is nothing new about homeowners here and elsewhere being unhappy with property taxes. Many think they are too high and unfairly assessed.

Over the years there have been various attempts to address the complaints through legislation. The latest was placed on the November ballot by the Arizona Legislature as Proposition 117.

One thing just about everyone can agree on in regard to our state's property tax system is that it is complex and hard to understand.

First is how value is assessed. There are two property values set: “full cash value” and “limited value.” These values may not match current real estate values since there can be a lag in when assessments are done, which often confuses property owners.

Also, some taxation uses one value and other forms of taxation use another. The “limited value” is the one primarily used.

And all this doesn't even address how tax rates on those values are established, which has its own confusion.

Prop 117 tries to address confusion over the property values by returning to a single assessed value on property, as previously existed in our state. It also puts a 5 percent cap on value increases per year beginning in 2015.

Supporters say this will make it less confusing for property owners trying to follow changes in their assessments and limit property value increases. Opponents say this is just a smokescreen and the real thing that needs to be capped is tax rates, as was done by California's famous Proposition 13, because rates can cause taxes to go up even if values are limited.

What voters should know is that Prop 117 may not result in any dramatic change in the amount of property taxes paid if they approve this measure, although it should simplify tax bills as far as property values are concerned.

Voters will need to decide if the change is a good enough reason to support this measure.

In our view, reduced complexity, even if only by a small amount, is a good thing.

This is one in a series of editorials about the propositions on the November ballot.