According to the Arizona Constitution, what is a limitation on property taxes?

The correct answer highlights that the assessment ratio for property tax cannot exceed a specified limit, which is a crucial principle in Arizona's taxation system. This means that there are established caps on how much property can be assessed for tax purposes relative to its market value. By setting an assessment ratio, the state ensures that property taxes remain somewhat predictable and manageable for property owners, preventing unexpected hikes in tax liabilities based on rapidly increasing property values.

This limitation is designed to protect homeowners and other property owners from excessive taxation and contributes to a more stable fiscal environment. The Arizona Constitution’s provision on property tax assessment ratios reflects an effort to balance revenue generation for municipal services with the need for economic fairness among residents.

In contrast, the other options do not accurately represent limitations as outlined in the Arizona Constitution. Valuing all property at less than market value is not a requirement; while there may be certain exemptions and regulatory practices in place, they are not universally mandatory for all homeowners. Additionally, while property taxes can fluctuate, the complete elimination of property taxes is not feasible within the framework of municipal funding and public services. These points highlight the importance of the assessment ratio as the most relevant limitation on property taxes in Arizona.