Millions of tax dollars at stake in Arizona census fight

censusBy Parker Leavitt | The Republic | azcentral.com

Much more than civic bragging rights are at stake as several Arizona cities pursue a mid-decade census to update their population counts, a move they hope will snag a greater share of a state money pot worth more than $1 billion each year.

Arizona uses official population figures to determine how much each city receives in state-shared revenue from sources like income tax, sales tax and vehicle taxes and fees. Cities use the money to help pay for day-to-day operations.

The competitive nature of the system pits high-growth communities like Gilbert and Peoria against more-established cities like Phoenix and Mesa. Growing cities need more money to provide services to new residents, but corresponding revenue cuts for cities with flatter growth charts can be painful.

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