Tempe, Ariz.’s property tax rate could go up to $2.16 per $100 of assessed valuation from the current $1.79 per $100 under a plan being considered later this week by the City Council.
The proposal would raise the primary rate to $0.79 per $100 from the current $0.66 and the secondary rate to $1.37 per $100 from the current $1.13.
Revenue from the secondary rate is dedicated to debt service.
The primary rate finances city operations.
Tempe’s $448.2 million of outstanding general obligation debt is rated Aa1 by Moody’s Investors Service and AAA by both Standard & Poor’s and Fitch Ratings.
The proposed increases would raise the taxes on a median $124,500 Tempe residence to $269 a year from the current $223.
The property tax rate went up $0.39 per $100 in 2011 as the city shifted from a unitary property-tax rate to the primary and secondary method.
Tempe has approximately 163,000 residents and a property tax base of $14.2 billion.
