In Arizona, cities can have two kinds of property tax: primary and secondary. Gilbert does not have a primary property tax, which is used for general operations like the police, fire or parks. Instead, we use sales tax money to pay for these things. We do have a secondary property tax, but only to pay for projects that voters have authorized on a ballot. Here’s a breakdown of what that means.
The secondary property tax can only be used for voter approved bonds.
In order to finance large projects needed in the community, the Town will sometimes ask voters for authorization to use bonds that will be paid back with property tax. In 2006 and 2007, voters approved bonds for road projects and recently in 2018, voters approved funding for the Public Safety Training Facility project.
The debt is paid back using secondary property tax. Each year the Town sets the levy at the amount of money needed to pay the debt (like your mortgage payment, only it’s once a year instead of monthly). In 2020, you’ll see an increase to the levy to account for the Public Safety Training Facility Gilbert voters authorized.
The levy is not the amount of money that individual homeowners pay. The levy is divided out among all the homes and businesses in Gilbert.
The secondary property tax rate residents pay has stayed the same for the past few years.
As Gilbert grows, we get more residents and businesses to help pay for projects. That’s why the tax rate is able to decrease or stay the same. Today, the rate is $0.99 per $100 of assessed property value, which is the same rate as last year. The rate has been steadily decreasing in Gilbert since 1995.
The tax rate decreased, but your property value may have increased.
Our community has seen tremendous growth and that can mean increased property values. If you are paying more on your secondary tax bill, it may mean that your property value has increased. For example, if you bought a house in 2017 and your property value was $193,200, in 2021, your estimated property value can be $262,000. Although your property value is increasing, the tax rate is still decreasing or staying the same.
Property tax bills vary per resident because the bill is a percentage of your property value. For example, say in 2017 you paid $160 in property taxes but in 2021 your tax estimate is $181. Despite the rate decreasing, your property tax increased because your property value increased.
Gilbert’s property tax is still the lowest in the region.
Gilbert has the lowest combined property tax of any major city in the region and we do our best to make sure the value of your tax dollar is stretched and used in a way that benefits you.
Want to see exactly how much you pay for the secondary property tax? Enter your address on the Maricopa County Assessors site to learn more.