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Understanding How the May 18 State Election to Create a Temporary 1% Sales Tax Affects Cities and Towns

For more than a year, there has been discussion about whether to let Arizona residents vote on paying an additional 1% state sales tax so that state services – primarily education – will not have to be cut so drastically.  The Legislature recently authorized that an election may be held on May 18 which would increase state sales tax by 1% for three years.  The initiation and expiration of that tax would be put into the Arizona Constitution so there would be no chance of it becoming a ‘permanent’ tax.

Under normal State Shared Revenue distributions formulas, 25% of the new revenue collected would be distributed to the 90 Arizona cities and towns.   But, because we understand the extreme stress put on our state to their services in place for all Arizona residents, the 90 cities and towns agreed last year to give up our normal share of this new tax.   We made this offer to Governor Brewer long, long before the state legislators agreed to let citizens have the final say and it still stands.   

Cities and towns have offered this concession as a way for us to help the state solve their budget crisis.  We have done our part.  Yet, some are coming back at us to pay for services that are not our responsibility. 

Here are the numbers.   Based on the state’s projection of revenue to be collected from the new 1% sales tax, if approved by voters on May 18, all cities and towns have agreed to forgo $200 million annually.  That is the total amount that would have been available for distribution to all 90 cities and towns.

GLENDALE’S SHARE OF THAT NEW TAX WOULD BE $9.96 MILLION ANNUALLY.  BUT WE HAVE GIVEN THAT UP TO HELP THE STATE.  PLEASE TELL STATE LEGISLATORS THAT CITIES AND TOWNS HAVE DONE OUR PART ALREADY.

You know that Glendale is working to close a $14.7 million deficit in our own budget.  Think about how $9.96 million would help accomplish that and remove the concerns being expressed about possible loss of some CAT team members, library hour reductions, loss of jobs, etc.  But Glendale along with the other 89 cities and towns, through our League of Arizona Cities and Towns, have voluntarily relinquished rights to our normal share of state sales tax collections. 

Many state legislators are acknowledging that the state should not try to fix its budget problems by wreaking havoc on the budgets and services of 90 cities and towns.  But they need to hear support from you to keep the courage to fight the efforts of others who are happy to take away your city services by taking your revenue that pays for those services.

We hope you will help us in this all important fight for our rights.  We will keep this website updated with current information for your use should you choose to contact at least your own district legislators and even all 90 members of the State House of Representatives and State Senate.

We will be updating this Web site and hope you will check it frequently.