Arizona mayors propose sales tax simplification plan

March 20, 2013

The League of Arizona Cities and Towns has released a proposal to simplify the state sales tax system. And, that plan includes taking the most contentious issue off the table for now. From Phoenix, KJZZ’s Mark Brodie reports.

MARK BRODIE: The League has been critical of the governor’s plan – specifically two provisions. One would stop cities and towns from conducting their own tax audits on companies doing business in their towns. The new proposal would give the state the right of first refusal on audits, and allow cities to work with the state on them. The other big point of contention is the tax on construction. Gilbert Mayor John Lewis says there’s too much uncertainty about that provision’s fiscal impact.

JOHN LEWIS: What we’re saying is that we need to continue to study the issue and accept all the other recommendations. But on that particular issue, to not implement it at this point, until the studies have been undertaken and reviewed, and the parties involved can say that this makes sense.

BRODIE: A Senate committee Wednesday approved a bill to simplify the sales tax, but that won’t be the last word on the issue. The measure will be assigned to another Senate committee – if it’s approved there, it’ll move to the full chamber for debate.

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