By Beth Duckett | The Arizona Republic
Four East Valley mayors are calling on Gov. Jan Brewer and the state to initiate an outside study on a controversial proposal to do away with the construction sales tax system in Arizona.
In a recent letter to Brewer, mayors from Scottsdale, Gilbert, Fountain Hills and Paradise Valley voiced concerns about the highly publicized reform that would alter the way construction sales taxes are collected.
A bill introduced in the Legislature this month incorporates the proposal. Cities and towns are upset about the potential loss of millions of dollars in construction sales tax revenues.
“We strongly recommend that this issue be studied as soon as possible and in greater detail by an independent and professional firm that has expertise with these issues,” said the letter from Scottsdale Mayor Jim Lane, Gilbert Mayor John Lewis, Fountain Hills Mayor Linda Kavanagh and Paradise Valley Mayor Scott LeMarr.
They argued the study should clarify questions, including what the current level of non-compliance is, what businesses have the most difficulty complying, and where in the state contractors actually purchase construction materials.
Brewer has expressed her support for House Bill 2657, which aims to simplify Arizona’s sales-tax system often described as overly complex by tax experts. She has pledged to work with cities and towns to address their concerns.
See RLGR’s coverage of the hearing on HB 2657: Cities, lawmakers argue the arithmetic of the sales tax simplification bill; construction tax change iffy
Related: Surprise mayor, officials lead opposition to HB 2657
EDITORIAL: Let’s be fair to Ariz. cities
COMMENTARY: Mayor: Sales-tax reform is troubling
