We all know what is going on in the real estate world for Scottsdale, Phoenix and the rest of the valley. So, the property valuation notices coming from the county are nothing new about the market. As a matter of fact, I think they will be good news. The good news is Your Property Tax should be going down, after valuations dropped.

The county got way ahead of itself with their valuations in 2004 to 2006. Greed in the department led to way over stated home valuations with the county. Traditionally, this valuation always trailed actual values. Actually, older homes of similar value to newer homes paid much lower taxes because of how slow the valuation was from the county. For example, a new home built in say 2000 with a value of $250,000 would have a valuation close to $250,000 and a tax close to $2,500. There are many factors but almost always it was close to 1%. Then at the same time, you might find a home built in 1990 with a value at that time of $250,000, but a valuation closer to say $180,000 and a tax of $1,800.

Then when the market went crazy, someone at the county realized if everything was boosted to current sales prices through their valuation process, there would be much more tax revenue. Thus, higher valuations and higher taxes. People saw huge jumps in their taxes. Fair? What is ever fair?

So Here we are today, getting this so called “More Pain From Assessor” as the Republic titled the story. I think we all know about the pain, the assessor should be reporting good news: Lower Taxes!

Maricopa County property values drop for 3rd straight year

by Catherine Reagor – Feb. 12, 2010 12:00 AM
The Arizona Republic

Values fell 23 percent in 2008, following a 13 percent drop in 2007.

“It’s still bad but not as bad,” county Assessor Keith Russell said.

Last year, the overall median value of homes in the county fell to $131,700 from $155,300.

Some Valley cities fared better than others. For example, home values in Tempe declined 13.4 percent in 2009, while they dropped 27.3 percent in Tolleson.

County homeowners have yet to see declines in property taxes similar to the drops in property valuations, and they won’t again this year.

Many Phoenix-area municipalities and school districts are facing budget gaps and will likely have to raise property taxes this fall.

Property-tax bills lag valuations by 18 months in Arizona and are based on a complex formula that includes funding for multiple municipalities and school districts. Most property-tax money goes to education.

Read the rest of the Story:  http://www.azcentral.com/arizonarepublic/news/articles/2010/02/12/20100212maricopa-county-property-values.html

Just my opinion…Jeff Cameron

Your McDowell Mountain Ranch Realtor, Valley Short Sale Expert and window to Advanced Notice of coming Foreclosure Homes!