Arizona's Cities and Towns United in Their Opposition To Permanent Income Tax Cuts
(Phoenix) - Arizona's cities and towns stand united in their opposition to a rate reduction in the state income tax, but would support the use of surplus revenue for infrastructure investment or even a one-time tax rebate.
Permanent rate reductions, such as a proposed 5% reduction to income tax rates over the next three years being discussed at the state legislature, would result in a loss of $180 million to cities and towns across the state.
"Cities and towns, like the state, are working to repair the damage done to their services and programs resulting from the revenue declines of the past several years," stated Ken Strobeck, Executive Director of the League of Arizona Cities and Towns. "A permanent rate reduction in the state income tax doesn't make long-term sense and would only shift the burden to cities and towns and require either a cut in services or an increase in taxes at the local level."
In 1972, Arizona voters passed an initiative establishing that 15% of the state income tax must be shared with cities and towns. In return, Arizona's cities and towns voluntarily preempted their ability to impose a local income or luxury tax so long as the income tax sharing continued. Today, the state income tax provides the largest portion of state shared revenues to cities and towns helping them fund essential public services such as police, fire, water, libraries, parks, garbage pickup and streets.
"Arizona's strong economic growth has produced better than expected revenues," said Strobeck. "This is due in large part to the attraction that Arizona cities and towns offer businesses, residents and tourists and we want to make sure that this budget surplus is used for the benefit of all Arizonans."
For more information contact:
Matthew Lore, Communication & Education Director
(602) 258-5786
The League of Arizona Cities and Towns, formed in 1937, is a voluntary, nonpartisan, non-profit association comprised of all 90 incorporated cities and towns in the state. The League serves its member cities and towns through providing legislative advocacy, technical assistance, conferences and training and information-sharing opportunities.
Arizona City/County Management Association
1820 W. Washington Street
Phoenix, AZ 85007
Phone: (602) 258-5786
Fax: (602) 253-3874