Strap into your time machine and set the date for five years
into the future. Property values have skyrocketed, and you decide to finally build
that room addition to your home. Imagine your shock when you receive your
next tax assessment and realize that your 300-square-foot room addition has
caused your property tax bill to double, permanently. To add insult to injury,
yours is now the highest-taxed home in the subdivision.
Science fiction? No, it is one of the very real unintended consequences of
Proposition 117, 1 enacted by Arizona voters in 2012.
Rule B or Not Rule B
Prop 117 and Property Tax Reform’s Dark Side
BY JAMES R. NEARHOOD
JAMES R. NEARHOOD, managing member with
Nearhood Law Offices PLC, has practiced law in the State
of Arizona since 1976. He has been certified by the State
Bar of Arizona as a Real Estate Specialist since 1991.
He specializes in the areas of complex real estate
transactions and real property tax litigation.