By Gary Nelson | The Arizona Republic
Like most Arizona cities, Mesa was sweating bullets as the Legislature opened for business this year.
Gov. Jan Brewer was proposing massive changes in how the state and cities collect sales taxes, and most lawmakers seemed poised to go along.
Her pitch was “simplification,” responding to complaints from Arizona businesses that paying multiple governments and facing multiple auditors was hurting their bottom line.
Cities were OK with simplification per se. But the proposal also included a provision that would have all but eliminated construction sales taxes, which provide huge infusions of cash to municipal budgets. Mesa estimated it would lose $8 million a year in construction sales taxes, and an additional $2 million annually in taxes that are recovered by city auditors. That’s general-fund money, used for police, fire and other daily operations.
Mayor Scott Smith was among the city leaders who went to bat against the proposal. After five months in the trenches, he declared victory this week.
