Gilbert Councilman Victor Petersen, an outspoken conservative with ties to the “tea party” movement, has called for an end to the town’s 3 percent bed tax, triggering a discussion over taxation without representation and economics, The Arizona Republic reports.
Petersen appears to have the support of fellow Councilman Eddie Cook and Councilman-elect Jared Taylor, who will take office in January.
Municipal bed taxes — charged to hotels in addition to sales taxes for each guest stay — have remained largely popular among Valley residents and business groups, even as voters this month rejected a proposed sales-tax increase for education by a nearly 2-1 ratio.
Several communities, including Glendale, Mesa and Tempe, have hiked bed-tax rates in recent years to generate more revenue for tourism-promotion efforts, typically handled by a convention and visitors bureau.
Petersen contends the money would be better spent by the hotels, and he argues that tourists already pay their way through fuel and sales taxes and that the bed tax constitutes taxation without representation.
For now, none of the other four council members supports eliminating the bed tax, but one more supporter would give the group the four votes necessary to pass the proposal.
Gilbert Chamber of Commerce President Kathy Tilque said it’s an “industry standard” to use bed-tax revenue to promote the community.
