- Phoenix, Arizona, is facing a USD 90 million budget shortfall.
- The shortfall is due to the state removing residents’ rental sales tax and implementing a flat income tax.
- The city is considering raising sales tax or cutting services to balance the budget.
- The City Council is considering increasing the transaction privilege tax (TPT) and use tax by up to 0.5%.
- The TPT rate has not been increased in nearly 40 years.
- The combined sales tax rate would increase from 2.3% to 2.8%.
- The decision on whether to increase the TPT will be made at the next council meeting on March 18.
- The city is also considering service cuts to reduce the budget gap.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
