Mesa treasurer proposes roughly 1% cut to secondary property tax; median homeowner impact about $166

Mark Hugh, Mesa's city treasurer, presented the proposed secondary property tax levy during the May 21 study session, saying Mesa's full cash value has for the first time exceeded $100 billion and that staff is proposing a roughly 1% rate decrease that would set the rate at about $0.85 per $100 of taxable value.

"The city is proposing to decrease the tax rate by roughly 1% ... and the resulting levy would cost the city's median homeowner $166 for the year," Hugh said. He told council the proposed levy would be about $46.44 million and explained the distinction between full cash value, limited property value and taxable value used to calculate the levy.

Hugh also described the components of the change in taxable value year over year: roughly one-third of the increase is attributable to new property added to the rolls and roughly two-thirds to appreciation of existing property. He said the proposed rate change keeps Mesa in a multi-year pattern of stable or slightly reduced tax rates even as the levy grows because of rising property values and recent bond issuances.

Council members discussed the distributional effects of property value increases, how growth affects demand for infrastructure (roads, sewers, public safety and facilities), and the timing of the public hearing and adoption schedule. Hugh noted the council will hold a public hearing on the budget and property tax levy on June 1 and would not consider final adoption of the secondary levy until July 20.

Next steps: public hearing on June 1; staff to return with the formal levy adoption items and additional details at the stated future meetings.