PHOENIX — Maricopa County school districts are needing to shell out about $150 million after a judge says a group of property owners were improperly taxed years ago.
ABC15 has reported on the Qasimyar vs Maricopa County lawsuit impact on Arizona fire districts. A judge, in recent months, ruled that a group of property owners were taxed incorrectly on homes that were re-classified as rental or secondary homes. Now, that money needs to bereturned as part of the lawsuit.
The total cost is about $300 million and Maricopa County school districts need to pay at least half of it. It varies per school district and city based on the home-assessed values.
For the Buckeye Union High School District, Jeff Simmons, the associate superintendent of operations, says they have to pay around $900,000.
“I've been doing this almost 30 years now and that's this is by far the largest one and the most complicated one that I've ever heard of,” he said of the lawsuit and its implications.
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Mesa Public Schools, the largest school district in the state, has to pay around $11.2 million. Scottsdale Unified has to pay even more, more than $27.5 million.
“That is because of the type of properties and how they were mis-assessed. Those properties tend to be some rental properties,” said Steve Watson, the Maricopa County Superintendent.
Watson, who is also running for re-election, says the decision and dollar amounts came down fairly quickly as districts were trying to figure out their next fiscal year budget.
“My biggest frustration is we’re paying interest on this. So, our school districts are asking taxpayers to pay additional dollars to pay interest for a mistake that Maricopa County made,” he said.
Watson said some districts will be using their cash to pay it back. Some are also asking the Arizona Department of Education to recalculate their state aid to help pay for it. Districts may also have to ask to recalculate tax rates as they figure out their future budgets, which ultimately could be a burden on taxpayers.
“It’s a pretty hefty burden we’re asking our school districts to carry. I’m concerned our school districts are being made a scapegoat because they’re the ones who are asking taxpayers for additional dollars,” Watson said.
As for how the money will be paid back, from both school districts and to those who were ruled in favor in the lawsuit, it’s unclear. Watson said school districts are also waiting on final numbers that may come in August.
