Strictly speaking, the state does not collect any property tax.
But when the state changes the assessment basis for those taxes to reduce what businesses pay, it can shift the tax burden onto homeowners to pay local governments, community colleges and other schools.
This has proven a failure among lawmakers who must visit these same owners every two years to be re-elected. Thus, past reductions in business taxes have included compensating tax breaks for owners.
Ducey’s budget provides $58 million for that, leaving lawmakers to enact corporate tax cuts.
Aides to the governor say the corporate tax break is warranted based on data they say shows Arizona has the 10th-highest industrial property tax rate in the nation.
Much of the new funding for K-12 education, beyond inflation and enrollment growth, is earmarked for school capital needs. This includes money for school grants for needed repairs as well as money to start three new high schools in the Marana, Pima and Nadaburg school districts.
Ducey’s plan also includes $58 million to help underperforming schools — those rated D or F by the state Department of Education as well as some C-rated schools where 60% or more of students come from low-income households. low income. The money of $150 per student for up to three years is designed to help schools improve; if they don’t, the governor will ask the state Department of Education to intervene.
