Over the past decade, Sierra Vista has seen significant fluctuations in its property tax revenues, reflecting changes in property values and economic conditions. Between 2012 and 2019, the city experienced a sharp decline in revenue generated from property taxes as property values dropped, affecting owners and the city’s budget.
A Decline in Revenue
In 2013, Sierra Vista collected around $400,000 in property tax revenue. However, as property values began to decrease, the city’s revenue took a hit, losing approximately $3,000 that year. The following year, in 2014, losses more than doubled to about $6,500. In 2015, the city had the option to increase the property tax rate to $16.08 (all rates listed will be per $100,000 of assessed property value). However, city officials chose to keep the rate at $11.36, resulting in even greater losses, nearly tripling from the previous year.
By 2018, property tax revenue had dropped by nearly $40,000, marking the lowest point in a decade. This decline continued into 2019, as property tax revenue remained stagnant.
The Pandemic’s Impact and Recovery
In 2020, as the COVID-19 pandemic created financial uncertainty for residents, the Sierra Vista City Council opted to lower property tax rates to $11.24. Despite the economic challenges, property values began to correct, leading to a slight increase in revenue that year. While these revenues returned to 2017 levels, they still remained well below the 2013 figures.
The city council continued to reduce property taxes another four times in the years following while property owners began too see recovering values:
2021: $11.06
2022: $10.98
2023: $10.56
2024: $10.33
Property owners who have been in the city more around a decade or more, probably remember the declining values. By 2018, the city had already began its initiative to upgrade its aging electrical grid and sports fields. This paved the way for major projects like the new sports stadium and soccer fields. This also helped revitalize the local economy by generating around $3.3 million in the first three years from sports tourism.
From a combination of increased property values, a growing population, and strategic tax reductions, Sierra Vista’s property tax revenue has been stabilized. Today, property taxes make up just 0.22% of the city’s budget (more than half of what it used to be), generating an estimated $382,000—slightly above 2011’s revenue levels.
Breaking Down a Sierra Vista Property Tax Bill
To understand how these tax rates impact residents, let’s break down a property tax bill using a real-world scenario.
Consider a Sierra Vista home with a listing price of $270,000. While listing prices are not used for tax calculations, they provide context for the type of home being examined.
Instead, we will use a market value —determined by the property appraiser’s office—of $170,000 for this example.
Using the 2024 property tax rate, the homeowner’s property tax bill would be calculated as follows:
Sierra Vista’s property tax rate remains the lowest in the county, contributing around $382,000 to the 2024 budget. The two highest tax rates remain county taxes (projected $29.8M) and the community college tax district ($27.2M).
The Future
Sierra Vista’s property tax revenues are showing signs of stability, reflecting an overall economic recovery. With property values rising, partially due to capital improvement projects, and new residents contributing to the tax base, the city has been able to keep tax rates low while still increasing revenue. The decision to continually lower tax rates throughout different city administrations signals a commitment to balancing city funding with affordability for homeowners and diversifying revenue streams.
Comments