By Melissa St. Aude | Casa Grande Dispatch
The city of Casa Grande could lose $1.5 million in construction sales taxes if state legislators approve House Bill 2657, and on Monday the City Council will consider a resolution opposing parts of the measure.
The City Council meeting, which is open to the public, begins at 7 p.m. in the council chambers at City Hall, 510 E. Florence Blvd.
Although the bill is aimed at simplifying transaction privilege tax regulations, it could hurt the bottom lines of cities by eliminating construction sales taxes at the local level and prohibiting cities and towns from collecting their own sales tax, according to the proposed resolution. The measure would also remove the city’s ability to audit businesses for compliance with tax collection and payment.
“Although simplification of certain components of transaction privilege taxes may assist businesses, changes which deprive local jurisdictions of revenues and control related to activity occurring within that jurisdiction will unnecessarily shift the bur- dens of growth and activity away from the areas most impacted by growth,” the resolution reads.
Legislative District 8 Reps. T.J. Shope and Frank Pratt are co-sponsors of the bill.
