By Mary Jo Pitzl | Arizona Capitol Times
Key highlights:
- Arizona lawmaker proposes four-year moratorium on tax and fee hikes for cities and towns
- City officials across the state say the freeze would limit their ability to meet pressing needs, such as water infrastructure and transportation
- Lawmakers’ proposals passed a committee on party line votes
A state lawmaker wants to protect people from higher taxes and fees, but he wants the cities to do the belt tightening.
In response, city officials statewide complain the proposed four-year moratorium on tax and fee hikes would hamstring their ability to meet pressing needs, from water infrastructure to transportation.
HB 4030 and its accompanying ballot referral would freeze current tax and fee rates charged by Arizona cities, counties and towns. Rep. Justin Olson, a Mesa Republican who is sponsoring the measures, casts it as a way to counter the lingering effects of high inflation and advance affordability.
“Given the high cost of living, let’s put a pause on any tax increases,” Olson said as he introduced his plan last month. Cities should be able to tighten their budgets and live within their means through June 2030, when the moratorium would end. Besides, he said, his proposal is only a freeze on rate increases; cities could see revenue gains with growth.
