What is the maximum allowable yearly increase for the ad valorem tax?

The maximum allowable yearly increase for the ad valorem tax in Arizona is indeed 10%. This percentage is established to ensure that property taxes do not rise excessively from one year to the next, providing stability for property owners and allowing for predictability in budgeting for both taxpayers and local governments.

Understanding the context in which this limit is set is important. It reflects a balance between the need for governmental revenue and the economic pressure on property owners; a fixed maximum increase helps to safeguard against drastic tax hikes during periods of rapid property value appreciation.

By setting the limit at 10%, Arizona aims to maintain a reasonable growth of public funding through property taxes while safeguarding taxpayers from potentially rapid inflation of tax liabilities. This information is crucial for residents and officials when planning financial strategies and understanding the implications of property tax legislation.