Prop. 104 would allow cities and towns to issue additional debt, up to 20 percent of taxable property values, for public safety and transportation facilities. Currently, Arizona taxing authorities are allowed to issue debt up to 6 percent of taxable property values, with the exception that cities and towns are allowed to issue additional debt up to 20 percent of taxable value for water, light, and sewer facilities, and to acquire land for the purposes of creating parks and open spaces. The new debt capacity under Prop. 104 would allow total debt capacity for public safety and transportation facilities to increase to 26 percent of taxable value. Higher debt levels may lead to higher debt service, which comes out of secondary (uncapped) property taxes. Passage of this proposition will allow cities to spend even more money backed by bonds which will be repaid through increased property taxes. I strongly oppose the additional debt limit and the increased taxing and spending that can and will necessarily follow.

Property taxes are the most regressive forms of taxation as there is no correlation between the tax levied and one’s ability to pay and therefore disproportionally affect the lower socio/economic classes, ie, those least able to afford them. Additionally, property taxes are a violation of basic private property rights and are nothing more than rent paid to the government for mere privilege of owning property. Furthermore, property taxes are levied upon arbitrary “values” as established by the government. Any “gain” in value is not obtained by the property owner until the property is sold to a new owner.