Vote was 4-1 with only public opposition coming from four residents from the Verde Valley; Verde Valley Third District Representative joins West County in approving the measure

The Yavapai Community College District Governing Board raised the County primary property tax rate by 5% at its meeting on Tuesday, May 16, 2023. Despite the proposed tax increase, public interest in the meeting was minimal, with only four residents from the Verde Valley expressing concerns.

The only Board member dissenting from the increase was Mr. Chris Kuknyo, the Board Secretary, and District 4 representative. He did not explain his vote at the time of the vote but said he would do so later.

Board members essentially justified their vote for the increase by citing inflation and the fact that the property tax rate had not been raised by the Community College for the past four years. Their rationale primarily revolved around these factors.

Unlike school districts, community colleges in Arizona possess a distinctive authority granted by state law to independently raise the property tax rate through the District Governing Board without requiring public election approval. It takes only a majority of the five member Board to approve an increase.

Yavapai Community College officially announces intent to seek primary property tax rate increase for all County residents

Yavapai Community College has notified taxpayers that it will seek approval from the five member Yavapai Community College District Governing Board to increase County residents primary property tax rate by 5% at the District’s May 16 meeting.   The tax rate can be increased by a simple majority vote of the five member Yavapai Community College District Governing Board.

The following is the tax rate increase notice the College sent to local newspapers:

In compliance with section 15-1461.01, Arizona Revised Statutes, Yavapai Community College District is notifying its property taxpayers of Yavapai Community College District’s intention to raise its primary property taxes over last year’s level.

The Yavapai Community College District is proposing an increase in primary property taxes of $2,553,300 or 5%.

All interested citizens are invited to attend the public hearing on the tax increase that is scheduled to be held on Tuesday, May 16, at 1 p.m. at the Yavapai College Prescott Campus – Community Room 19-147, 1100 E. Sheldon Street, Prescott.

As an example, the proposed tax increase will cause Yavapai Community College District’s primary property taxes on a $100,000 home to increase from $143.66 (total taxes that would be owed without the proposed tax increase) to $150.84 (total proposed taxes including the tax increase).

This proposed increase is exclusive of increased primary property taxes received from new construction.

The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides.

Yavapai College operates six campuses and centers throughout Yavapai County and offers over 100 degrees and certificates, a baccalaureate degree, student and community services, and cultural events and activities.

Information provided by Yavapai College.  https://www.yc.edu/v6/district-governing-board/members.html (Link to Governing Board Members web page is https://www.yc.edu/v6/district-governing-board/members.html)

With 85 open acres on the Verde Campus, the issue is whether it could lease a portion of that land to a private company for a  vineyard or other purposes and the company need not pay taxes

Last week, the Arizona attorney general sued Arizona State University(ASU) in Arizona Tax Court over a real estate deal approved by the Regents who oversee ASU. 

He claims that it is illegal for ASU to allow for-profit companies to build on university-owned land, which is tax-exempt. ASU is essentially renting out its tax-exempt status to private businesses, Brnovich said. He seeks to force an unbuilt Omni Hotel to pay taxes.

The lawsuit is important to the Verde Campus in Clarkdale because it has somewhere around 85 acres of vacant land.  In the future, that land might be built on in partnership with the College and a private company. Will the private company have to pay taxes?  This lawsuit should answer that question.

His analysis shows that East County residents pay 30% of the taxes collected by the College and should get something around 30% in return for educational services; they get far less

Accountant and local realtor Robb Witt says the 73,000 residents of East Yavapai County may be short-changed $12 million a year by Yavapai Community College.  He arrived at his conclusion with the help of Tax Assessor Judd Simmons and budgetary material posted by the College.

Mr. Witt rhetorically asked the following in a statement supporting his analysis made to the Blog: “Is it reasonable for the tax payers of Yavapai County to expect services in return for the taxes they pay to support the community College?   According to Yavapai County Tax Assessor Judd Simmons, East County Tax payers provide over 30% of the taxes used to fund the college. According to the audited financial statements of the Community College, 30% of the total budget for the 2016-2017 school year equals $22,093,809.00, A recent analysis of these financial statement suggests the college is returning just $9,072,824 in services leaving $12,987,936.00. unaccounted for.” 

He continued: “If you pay taxes and feel like there should be some type of equitable return for your tax contribution you need to get involved.”

The Blog notes that Mr. Witt has asked the Community College administration for a response to his analysis.  He has not as yet received a reply.