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Who pays for the District?

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Who pays for the District?

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A. The District is organized under the laws of Arizona as a special district. It generates a majority of its revenue from a secondary property tax assessed on all real property. Based on a tax rate of $1.64 per $100 secondary assessed value, the annual tax on a $100,000 home would be $164.00.

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The District is organized under the laws of Arizona as a special district. It generates a majority of its revenue from a secondary property tax assessed on all real property.

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In a recent letter to the press, Councilmember Jack Evans cited some basic details that are useful to bear in mind, when discussing District finances and the tax base: • The District raises 97 percent of its revenue locally, with the federal contribution comprising a small percentage of the total. • The three key areas of tax generation are property taxes, income taxes and sales taxes. • The District is prohibited from taxing people who work in the District but live elsewhere. Both Maryland and Virginia tax revenue at its source. • If the District could do the same, it would amount to some $400 million in additional revenue annually.

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