TAX NEWS - 2010

Tucson City Tax: Tucson council puts sales tax to public vote

Tucson City Council has voted five to two to ask voters to add a half cent to the city sales tax.

The November vote would ask voters to lift the cap that currently holds the city's share of the sales tax to two percent and allow a jump to two and a half percent.

The measure would revoke or "sunset" the half cent taxing authority in five years.

Business interests objected to the hike, saying with the state's recently passed one percent hike it would push the city tax to 9.6 percent, enough, they fear, to drive customers to lower tax areas.

Business consultant Rick Grinnell says that is a thought that crossed his mind. "Yesterday when I bought some furniture  I had a choice, do I want to buy inside the city of Tucson or do I go outside. Obviously I want to spend my money inside."
 
The additional money would be promised to hold off cuts to police, fire, streets, parks and courts.

That did not persuade business critics like Paul Parisi of the Metropolitan Chamber of Commerce.

He says, "Every time the city faces a budget crisis we hear the same old scare tactic that police and firefighters will be cut.  Let me remind you that public safety is the city's first priority. We expect the mayor and council to make a firm commitment to public safety right now."

Councilmembers and city staff pushed back, saying they've cut staff to what it was 12 years ago, had to leave more than 100 police vacancies unfilled and need the tax to avoid cutting services past the bone.

Council member Steve Kozachik cited business concerns in voting no.

Council member Paul Cunningham voted no saying he thinks the idea is poorly timed.

Earlier Wednesday, a citizens committee reviewing the tax idea concluded even more cuts cannot hold off the need for the tax.