By Real Estate Daily News
ORO VALLEY, Arizona (September 25, 2025) — The Oro Valley Town Council is weighing a new commercial rental tax along with other proposed fees as part of its 2025 Taxes and Fees package. Town officials cite the need to “address rising operational costs, aging infrastructure and the Town’s long-term financial stability” as the primary drivers for the proposals. They also point out that neighboring municipalities have adopted similar fees.
However, the move has raised concerns among business and commercial real estate stakeholders, many of whom argue that Oro Valley’s existing regulatory environment already creates significant barriers to business growth. Critics note the Town’s past decisions to deny housing projects, such as the Casita and Kai proposals, as well as restrictions on new business entries at the Oro Valley Marketplace. These policies, they say, contribute to the very retail “leakage” that town leadership acknowledges — estimated at $1.8 billion annually — by forcing residents and businesses to shop or locate elsewhere.
During a July 10 Zoom meeting and at the September 11 Oro Valley Chamber Business Forum, local professionals voiced concerns about the new tax. Despite this feedback, the Town’s Budget and Finance Commission voted unanimously in favor of the proposed taxes on September 16.
