A group seeking California-style tax caps has filed an initiative with the Secretary of State that would ask voters to dramatically change the way property taxes are calculated in Arizona.

The group, called Prop 13 Arizona, wants to roll back property valuations to 2003 levels and to limit property tax rates at .5 percent for all residential property and 1 percent for all other property. It would also cap valuation increases at 2 percent per year and eliminate overrides and exceptions to the tax cap.

Properties added to the tax rolls after 2003 will be valued at their purchase prices, according to the initiative which was submitted to the Secretary of State on March 6.

The group also tried to rewrite the state’s tax laws last year, but the initiative effort lost steam and failed to draw enough signatures to qualify for the November 2008 ballot.

The group has filed its latest initiative as the state faces a gaping $3 billion budget deficit next fiscal year and is weighing the necessity of raising taxes as suggested by the Governor's Office.

In response to the group’s initiative last year, Kevin McCarthy, the president of tax-watchdog Arizona Tax Research Association, estimated the initiative would cut property-tax revenue by about half and added there is not enough money in income taxes and sales taxes to make that up.

In a statement, Prop 13 Arizona said its initiative will move the state toward a purchase-price based system.

“It eliminates subjective and unfair valuations and the need for assessment appeals,” the group stated in a press release. “The formula is easy to understand and easy to calculate. Buyers will know their tax obligation for as long as they own the property with no surprises. If they can keep up with a maximum 2 percent increase per year, they will never be taxed out of their home.”

Lynne Weaver, the group’s chairman, told the Arizona Capitol Times last year her group did not have enough time to gather the 230,047 signatures needed to qualify for the November ballot.

“So this time, we are starting earlier,” she said.

The group has until July 1, 2010, to submit the required number of signatures in order to qualify for the ballot next November.