The Tempe City Council is holding a public hearing on June 5 regarding a proposed increase to the primary property tax, which is used for general city services.

     The amount of city property tax is based on two factors: 1) the property tax rate set by the city, and 2) your property valuation, as assessed by the county government. Those valuations were issued by the county assessor’s office in mid-2006, and may not be reflective of more recent drops in housing values.

The property tax paid to the city is approximately 15 percent of a homeowner’s total property tax bill. By law, the city is allowed to raise the primary property tax rate by a maximum of 2 percent each year; in 2007, the City Council voted to raise the rate by the full 2 percent.

The city of Tempe is now proposing an increase in primary property taxes of $207,424 or 1.93 percent, for fiscal year 2008-09. The proposed tax increase will cause the city of Tempe’s primary property taxes on a $100,000 home to increase from $49.71 to $50.70.

The increase is exclusive of any changes that may occur from property tax levies for voter-approved bonded indebtedness or budget and tax overrides.

All interested citizens are invited to attend the public hearing on the tax increase that is scheduled to be held Thursday, June 5, at 7:30 p.m. at the City Council Chambers, 31 E. Fifth St. The city of Tempe is required to set its property tax rate by its June 19 meeting.

Any new tax rated approved by the City Council will take effect on homeowners’ fall tax bill, typically due by Oct. 1.

For more information, contact the city of Tempe Financial Services Department at 480-350-8350.