Gilbert leaders call for compromise on tax reform

taxesBy Parker Leavitt | The Arizona Republic

Looking to move past a “misunderstanding” on the issue of statewide sales-tax reform, the Gilbert Chamber of Commerce on Sunday joined Mayor John Lewis in calling for a compromise on a proposal to abolish the state construction tax while supporting other provisions of the bill.

A joint statement from Lewis and chamber board chairman Jon Olson applauded Gov. Jan Brewer’s efforts to simplify Arizona’s sales-tax system, saying such change is “overdue” and necessary for economic growth.

But a proposal to replace the construction sales tax with a tax on the sale of contractor materials — a move that could strip fast-growing communities like Gilbert of millions of dollars annually — deserves more discussion, Lewis and Olson agreed.

“This is a massive shift in tax policy that severely punishes high-growth communities such as Gilbert,” the joint statement said.

Related: Another city opposes tax simplification bill 

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