The Central Arizona Water Conversation District board of directors approved Thursday a reduction of 2 cents per $100 of assessed valuation in the property tax rate for the 2007-08 tax year.
The new rate will change from 8 cents to 6 cents per $100 of assessed valuation. The decision came after the board voted against proposed rates of 7 cents and 6.5 cents.
The reduction represents a taxpayer savings of about $11.6 million.
“The board, after very diligent discussion, is pleased with the 25 percent reduction in property tax allocations that reflects an understanding of increasing property valuations while also ensuring a long-term water supply for the future,” board president Susan Bitter Smith said.
This is the third tax reduction since 2000, when the tax rate was 10 cents. The reduction was recommended by CAP staff due to the rise in property values in Maricopa, Pima and Pinal counties.
CAP provides Colorado River water to customers within three counties through a 336-mile-long system.