Oro Valley local taxes are higher than those of most Arizona cities and towns, according to a study by Kiplinger, a personal finance advisory company. The study, published in September, ranked the 30 largest cities and towns based on the estimated local tax burden.
Marana tops list....but Oro Valley isn't far behind
Marana was the town with the most local taxes. It was followed by the City of Tucson. Casa Grande, Apache Junction and Maricopa had more taxes than Oro Valley, but not by much.
Oro Valley's High sales tax
Oro Valley's high local taxes are driven by several factors. One is a high sales tax. We've documented this in a recent prior post.
Tucson and Oro Valley lead the Southern Arizona pack when it comes to sales tax. Oro Valley's half cent sales tax golf levy is indeed unique. It's the only one in Arizona.
Oro Valley's high utility tax
The Oro Valley utility tax didn't exist until 2007, when a 2% tax was enacted. It was enacted during the recession to avoid cuts in town staffing. It got doubled to 4% in 2011 to avoid having to reduce the police budget, a reduction that would have been in line with other town staff reductions at that time.
The original 2% utility tax was supposed to have been rescinded two years after its inception in 2007. That never happened. The 2 percentage point increase imposed in 2011 was supposed to have "gone away" when the economy improved. The economy has improved substantially. Yet, the doubled utility tax remains today.
Want to learn more? Read our deceased colleague John Musolf's post: "Perpetual Life Of The Utility Tax."
Oro Valley’s high water cost
LOVE has previously reported on the high cost of Oro Valley’s water in our posting: "Taxes, Add-On Fees, and an Inverted Rate Schedule Make Oro Valley Water Expensive.” Fees and tax levies add 41% to the cost of water. Water rates have gone up since that post; and with that increase in rates, so have the add on fees. Oro Valley's high water cost was not considered in the Kiplinger survey.
Oro Valley's higher than average county property values per square foot
Oro Valley also has a leadership role in property values. These values are the basis for the property taxes we pay. LOVE has also documented that Oro Valley's property values are higher per square foot than the rest of the county. Our 2015 analysis revealed that Oro Valley's population was 4% of Pima County but its assessed property values were 9% of total county property values. The result: Oro Valley residents pay more property taxes per square foot than other areas. Oro Valley's higher property taxes per square foot was not considered in the Kiplinger survey.
Up Next: Oro Valley Is Growing Too Expensive for Retirees
Arizona has always been a destination for retirees. Oro Valley has been the beneficiary. This fact accounts for why Oro Valley's median resident age is almost 50 years, while the national median age is 38. Next monday, learn how things are changing.
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