Q. What is the CAWCD tax on my property tax bill?

A. The CAWCD tax is for the Central Arizona Water Conservation District which is the entity that governs the Central Arizona Project.

Q. What is the Central Arizona Project?

A. The CAP is a 336-mile-long aqueduct that annually brings about 1.5 million acre-feet of Colorado River water into CAP's three county service area which is Maricopa, Pinal and Pima counties. CAP water is used by cities, water utilities, agricultural districts and Native American communities throughout central and southern Arizona.

Q. Why is there a tax for CAWCD?

A. The CAWCD tax is levied to help pay the cost of construction and operations of Central Arizona Project. The residents of those three counties, Maricopa, Pinal and Pima, are the only ones that pay a property tax to CAWCD.

Q. How much is the CAWCD tax?

A. The CAWCD tax rate currently is 6-cents per $100 of assessed valuation. In addition, the CAWCD also collects an additional 4-cents per $100 of assessed valuation to purchase water on behalf of the Arizona Water Banking Authority. The water is stored underground to be used if there is ever a water shortage due to drought.

Q. I have a well, why should I pay property taxes to CAWCD?

A. There are two reasons. First, without CAP water deliveries chances are many people would have to sink wells and depend on the same aquifer that supplies you. If that were to happen, your aquifer could go dry or you would have to sink your well deeper and deeper. Secondly, although you may not directly use CAP water, many cities depend upon it. That tax, like a school tax for those who have no children, is simply the cost of living in society. We all must pay for the common good of society, that is, you help pay for water you don't consume, schools your children do not attend, roads and highways you don't travel, etc. CAP also supports the economy of the state by providing a reliable, renewable water supply - this keeps property values up for everybody, not just those who use CAP water.

Q. Who decides the tax rate?

A. The tax rate is set by the CAWCD Board of Directors. The 15-member board is popularly elected and the board determines the tax rate each year.

Q. How often is it raised or lowered?

A. The maximum tax rate allowed by law is 10-cents per $100 of assessed valuation. For many years CAWCD collected the maximum amount allowed in order to have operational funds and to pay back the federal government for the costs of construction of the system. However, over time the board has been able to reduce the rate. In 2003, the CAWCD Board reduced the rate from 10-cents to 8-cents. In 2007, the CAWCD Board again voted to lower the rate, reducing it from 8-cents to the new rate of 6-cents per $100 of assessed valuation.

Q. Then why is the CAWCD tax rate on my bill higher?

A. The CAWCD Board also collects 4-cents per $100 of assessed valuation for the Water Bank. Since purchasing and storing available excess water is critical to Arizona, the CAWCD Board has never voted to reduce the 4-cent rate. That 4 cents is added to the CAWCD rate of 6-cents for a total tax bill of 10-cents per $100 of assessed valuation.

Q. I have a Central Arizona Groundwater Replenishment District (CAGRD) assessment on my property tax bill. What is this?

A. Under current State of Arizona laws, your house could not have been built without enrollment as a Member Land of the CAGRD. Residential subdivisions developed after February 1995 can no longer rely on groundwater as their exclusive water supply. The developer of your subdivision enrolled your home in the CAGRD so that the CAGRD would replenish or replace the groundwater pumped to serve your home. In other words, the water you use must be replaced through artificial recharge.

Q. Do I have to pay the CAGRD tax?

A. Yes. You must pay the cost of replacing the groundwater you use. This cost is included as a line item on your property tax bill and must be paid to the County along with your property tax payment. The County then transfers that money to CAGRD to be used to buy and recharge to replenish the groundwater delivered to your home during the last year.

Q. How does the CAGRD determine what I have to pay?

A. The CAGRD annually determines its total replenishment obligation for all of its members along with the cost to satisfy that obligation through the purchase and recharge of renewable water supplies. You pay the cost of replacing the water you used.

Q. Why is the CAGRD assessment on my home different from my neighbor?

A. You used different amounts of water during the last year. Your assessment is determined by the amount of groundwater actually delivered to your home by your water provider.

Q. How can I reduce my CAGRD assessment?

A. It is based on the amount of water you use. If you use less you will pay less.

Q. How can I get my home out of the CAGRD?

A. Under current law, you cannot get your home out of the CAGRD. However, if your water provider switches from groundwater to a renewable water supply, e.g. SRP or CAP water, then your CAGRD assessment would be $0.

Q. Where can I get more information about the CAGRD?

A. Visit www.cagrd.com for more information.