The Arizona Tax Research Association (ATRA)Board of Directors has voted to support Proposition 100, the temporary 1-cent sales tax rate increase that has been referred to the voters on May 18, 2010.
In Maricopa County, more than half of the districts with override elections on next week’s ballot are asking voters to approve an override that the voters already rejected. In all but one of those districts the voters rejected the overrides only 4 months ago. In some districts, such as Dysart Elementary and Union Elementary, the defeats were resounding with “no” votes outnumbering “yes” votes by more than 2 to 1.
With Governor Brewer’s veto today of Senate Bill 1025, Arizona property taxpayers, and in particular businesses and employers, will see higher property taxes added to their current list of economic challenges.
“ATRA has supported several different efforts that attempted to reform the initiative process and restore some sanity to fiscal policy development at the state level. We believe Majority Rule prescribes a specific initiative reform in an area that is most problematic for Arizona taxpayers,” said ATRA President Kevin McCarthy.
The Department of Revenue’s Debt Oversight Commission annually releases a full accounting of the debt held by all of Arizona’s state and local governments.
On November 7, Proposition (Prop.) 203, or the Arizona Early Childhood Development and Health Initiative, will ask Arizonans to increase the tax rate 80 cents on a pack of cigarettes or a 68% increase, from $1.18 to $1.98, and also varying amounts on other tobacco products (OTP). This would propel the state to the sixth highest tobacco tax rate in the nation.
An Arizona Tax Research Association (ATRA) analysis of 2003 state and local property taxes found that taxes climbed $334.4 million, shattering the previous record for one-year growth of $289 million set in 2000. The 7.6% increase in levies was driven primarily by a 10.4% increase in property values.
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