Arizona Tax: Tax revenues reflect Valley's tough economy

By Diane Saunders, 30 May 2010 -- Sales tax revenues are down significantly in Graham County and so are property tax payments.

Clel Flake, the county's chief financial officer, said a 25-percent drop in sales tax revenue was recorded during the first 10 months of the fiscal year when compared to the same period last fiscal year. The state's fiscal year runs from July 1 through June 30.

For the first 10 months this fiscal year, the county received $1.35 million in sales tax money. During the same period last fiscal year, the county received $1.8 million, Flake said.

The new 1-cent sales tax that begins Tuesday will do nothing to close the tax revenue gap. This tax is earmarked for the Arizona general fund to close the state budget deficit.

The tough economy in Graham County is also reflected in the amount of property taxes collected in 2009.

County records show that Graham's 2009 tax levies from all taxing authorities totaled $20.214 million, but only $16.917 million — 84 percent — was paid.

If Eurofresh paid its tax debt, then the percentage of taxes owed the county would be reduced from 16 percent to 7 percent, according to Graham County Treasurer Jean Reynolds.

According to Graham County officials, Eurofresh, a Bonita-based commercial tomato grower, owes the county $578,561.79 and owes Graham County taxing authorities $2.712 million for the second half of 2008 and all of 2009. These amounts do not include accrued interest.

The 2009 tax levy for the county alone was $3.415 million. The amount collected was $2.791 million, according to county records. This means 82 percent was paid.