By Jeremy Duda | Arizona Capitol Times
The unanimous vote that Gov. Jan Brewer’s sales tax reform bill received in the House Ways and Means Committee is far from a sign of smooth sailing ahead.
The committee’s three Democrats were part of the 8-0 vote for HB 2657 in committee on Monday. But all said they would oppose the bill on the floor if it didn’t do more to address concerns from cities that say they stand to lose from the proposal.
And a bigger problem may keep the governor’s prized bill from the floor altogether. The legislation has also been assigned to the House Appropriations Committee, where Chairman John Kavanagh said he won’t even hear the bill if it doesn’t replace millions in tax revenue that some cities will lose due to changes in the way that sales taxes on construction materials would be collected and distributed.
“I am not in the habit of kneecapping my municipalities,” Kavanagh, R-Fountain Hills, said.
[EDITORIAL] Sales tax change could hurt locals
