The City of Tucson will adopt its final property tax levy for Fiscal Year 2014 at a hearing on June 4, 2013. The Arizona Constitution and Arizona Revised Statutes specify a property tax levy limitation system. This system consists of two levies; a limited levy known as the primary property tax levy and an unlimited levy referred to as the secondary property tax levy.
The primary levy may be imposed for all purposes; however, there is a strict limitation on how much the city can levy. The primary property tax levy is limited to an increase of 2% over the previous year's maximum allowable primary levy, plus an increased dollar amount due to a net gain in property not taxed the previous year. The City does intend to levy the maximum amount allowable under State law.
The Arizona State law also allows cities and towns to include tort claim reimbursements in the primary tax levy. The City will include in the primary property tax levy an amount to equal the cost of liability claim judgments paid during Fiscal Year 2012.
The secondary property tax allows the City to levy a property tax for the purpose of retiring the principal and paying the interest on general obligation bonds. The City will levy the amount necessary to make the Fiscal Year 2014 principal and interest payments on its outstanding general obligation bonds.