Huckelberry proposes sales-tax increase, full board approval required - The Explorer: News

Huckelberry proposes sales-tax increase, full board approval required

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Chuck Huckelberry

Posted: Wednesday, August 6, 2014 4:00 am

It’s no secret that the roadways in Pima County are in bad shape. However, the problem has been finding a funding source that all, or even the majority, of the Pima County Board of Supervisors could agree on.

As directed by the Board of Supervisors, Pima County Administrator Chuck Huckelberry laid out options for how to solve the problem. That solution would involve the entire board approving  a half-cent sales tax approved to bring more than $76 million a year, with $30 million of that to go toward road repair.

This option could mean fixing Pima County roads in seven or eight years, Huckelberry said in the lengthy Aug. 1 memorandum where he laid out a variety options.

By approving the sales-tax hike, Huckelberry said it would provide significant funding for the road-repair plan that in total will cost the county on estimated $264 million to repair the county’s 1,855 miles of roads.

On average, Huckelberry said for every $1 million of funding available, seven miles of roads can be rehabilitated.

“Thus, $38 million would address, at a minimum, the preservation of 266 miles of roads annually,” Huckelberry explains to the board.

After the initial rehabilitation cycle in seven to eight years, Huckelberry recommended a plan to have the sales tax excess be applied toward property-tax reduction. While Pima County has the highest property taxes of any Arizona county, it has the lowest in sales taxes, which means not all demographics are paying.

 “A significant difference between property taxes and sales taxes is that a portion of sales tax revenues is paid by individuals and businesses that do not reside in Pima County but who benefit from county services,” Huckelberry said. “Sales tax payments by non-residents increase the net amount of funds available to provide these services.”

If passed, Huckelberry said the sales tax would apply not only in unincorporated Pima County, but also in the incorporated towns inside the county.

“Dedicating one-half the proposed sales tax would provide significant funding for this plan,” Huckleberry said. “It is anticipated the county would receive $76 million in net sales tax proceeds in fiscal year 2015/16, the first full year of collections. Thirty-eight million of these proceeds would be dedicated to pavement preservation and reconstruction and repair and maintenance of roads.”

Without a sales tax for so long, Huckelberry said the county has been forced to rely more on primary property taxes to fund services and programs inside the general fund.

“In fiscal year 2014/15, the primary property tax levy is funding 62 percent of our General Fund expenditures,” Huckelberry said. “The county’s reliance on the primary property tax is the highest of any county in Arizona and is a direct result of not levying a sales tax.”

While Huckelberry feels this is a good approach to take to not only address road-repair issues facing the county, he also feels it could lesson property taxes currently being levied in the county. However, for the recommended plan of action to pass, Huckelberry must receive approval from the entire Board of Supervisors.

To date, Republican District 4 Supervisor Ray Carroll has never approved a tax hike of any kind. Currently in her first term in office, Republican District 1 Supervisor Ally Miller has also been critical of any kind of tax hike, and is also often at odds with Huckelberry on how to address road-repair issues.

While Huckelberry stressed the best option to consider is a sales tax hike, he also laid out options for a property-tax increase and a gas-tax increase, but noted neither was optimal.

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1 comment:

  • hakeson1 posted at 6:51 am on Wed, Aug 6, 2014.

    hakeson1 Posts: 5

    Just say, NO! More sales tax is not the answer. Yes, Pima County needs money for roads. The old excuse with a sales tax we pick the pockets of visitors is a nothing for the retired, fixed income, low income residents that have to live with the additional regressive sales tax day in and day out, year around.
    Let's come up with a fair way to pay for streets, roads. One that assesses the value of improved roads to the benefits of the improvements. The State Legislature has robbed the gas tax revenue from local governments. Permit fees for new construction and "set asides" only effects and increases the cost of new projects and really limits jobs and growth for local areas.
    Transportation, good streets and roads increase property values leading to more worth to property owners across the county. What about an assessment on all property in the county dedicated to transportation, streets, and highways?
    A small rate on the value of property shared equally by residential and business would provide more than the required annual road budget for Pima County and reflect the benefit that access to property provides.
    It would not punish visitors or full time residents, nor discourage growth and new construction. Let's give the voters a choice, fair across the board tax or more regressive sales taxes placing additional burden on us retired or otherwise low income residents.

     

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