It is important to know that Proposition 482 will not raise property taxes or other county taxes.
Here’s How it Works
In 1980, Arizona voters approved an amendment to the State Constitution that set an annual expenditure limit for counties, cities, towns, community college districts and school districts. The starting point is called the expenditure base, and the base was set using actual county expenditures from fiscal year 1979-1980, which was $10,268,127. The expenditure limit is adjusted each year by the Arizona Economic Estimates Commission, with assistance from the Department of Revenue, using the expenditure base, and factoring in population growth and the national inflation rate.
The county provides essential services to residents, including law enforcement, road maintenance and road improvement projects, disaster response, elections, health and many others that impact residents every day – all while having the lowest primary property tax rate in Arizona, implementing conservative revenue forecasting and budgeting methods and maintaining a balanced budget. Nonetheless, costs are frequently rising, and the county is asking for a permanent base adjustment to its expenditure limit to sustain the services it provides today.
The expenditure base established 44 years ago creates challenges for meeting modern needs and service demands. The county has many expenses that did not exist in 1980, like cell phones, laptop computers, the internet, advanced public safety equipment, new search and rescue communications equipment, costs shifted from the state and many other new state-mandated requirements.
While increases in tourism have led to more sales tax revenue, that increased tourism also increased demand for services from law enforcement, road maintenance, search and rescue, and other services. However, the expenditure limitation does not adjust for these costs.
Additionally, overall costs in Northern Arizona have often increased above the national inflation average, which is used to annually adjust the expenditure base. For example, over the past decade, state-collected sales taxes that are shared with the county have increased an average of 6.7% each year. Over the same period, the expenditure limit has increased on average only 2.7% per year.
Adjusting the expenditure base does not allow Coconino County to spend more revenue than it receives, nor does it raise property or other taxes. It allows the county to expend the revenues that voters have already authorized the state and county to collect, like the Road Maintenance Sales Tax, which was approved by about 65% of county voters in 2014. Right now, road improvement projects promised to residents are delayed due to the expenditure limit.
Since 2014, the county has invested $92 million in road maintenance and road improvement projects using the Road Maintenance Sales Tax. Public Works maintains 494 miles of county-owned roads, 202 miles of Forest Service roads and 286 miles of school bus routes on the Navajo Nation.
Coconino County is not alone. Four Arizona counties, including our neighbors in Navajo and Apache counties, have permanently adjusted their expenditure base, and this November, Yavapai County will also seek a permanent adjustment to its expenditure base. Not only that, but 44 of 91 cities and towns in Arizona have done the same, including Flagstaff in 2022.
It is important to know that Proposition 482 will not raise property taxes or other county taxes. Proposition 482 will only raise the expenditure base, which increases how much the county is allowed to spend. The increase allows the county to spend revenues that the voters have already approved and those it otherwise receives.
Coconino County’s expenditure base was set to equal its actual spending in fiscal year 1979–1980. The county is asking voters to permanently increase its expenditure base by $7.7 million. The Board of Supervisors based the $7.7 million increase on projected revenues and expenditures over the next 20 years. If approved by voters in November, the Arizona Economic Estimates Commission would use the new expenditure base to calculate all future county expenditure limitations. The increase would begin in fiscal year 2025-2026. FBN
By Andy Bertelsen
For more information visit coconino.az.gov/Prop482 or if you have questions, email prop482@coconino.az.gov.
Andy Bertelsen is the manager of Coconino County.
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