Gilbert, other Valley cities worry about construction sales-tax reform as Legislature begins

The Arizona Republic

Gilbert officials are prepared to play defense when the state Legislature begins a new session on Monday, with sales-tax revenue, economic development and regulatory reform among the town’s highest priorities.

“There are certain pieces of legislation that have us concerned,” head Gilbert lobbyist Leah Hubbard said. “Chief among them is the construction sales tax.”

Gibert’s unease stems from a recommendation by a task force formed by Gov. Jan Brewer to consider ways to simplify Arizona’s sales-tax structure, which she said is among the nation’s most complex.

One proposed reform would limit taxation to raw materials purchased by the contractor, instead of allowing cities to tax the finished product sold to consumers.

That could shift some revenue away from construction hotbeds such as Gilbert, where hundreds of new houses are built each month, to the cities where the construction materials are sold.


Also: Chandler worried as well 

W. Valley cities work to protect tax revenue

Legislature asked by Mesa to keep distance

Phoenix lists its legislative priorities

Fountain Hills could lose construction sales tax

Area towns face ‘cataclysm’ if revenue stream is cut off


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