Posted: Dec 23, 2012 11:05 AM by Associated Press
PHOENIX (AP) - Arizona's cities and towns are worried a proposal to change how sales taxes are collected from construction projects will severely cut the amount they receive from new building.
The reforms would have contractors pay sales taxes when they buy materials. That's a big change from the current system that assesses sales taxes on a percentage of the project's value.
The Arizona Republic reports the League of Arizona Cities and Towns estimates cities could lose $168 million a year. That's because sales taxes that now go to municipalities where a project is built could instead be collected where construction materials are actually sold.
A task force established by Gov. Jan Brewer to simplify the state's sales-tax system made the proposal. Any change requires action by the state Legislature.
Click here to submit a news tip to us!
Become a Facebook Fan!
Help those in need this holiday season
Win! Win! Win!
Wise Local Marketing!
Get news, weather and more on your smartphone and tablet!
Get texts for news, traffic, deals and more!
Sign up on KVOA.com for newsletters, exclusive deals, and more!
What's happening on News 4 @ 4
Stories and videos with Kristi's Kids
Check out the latest events FC Tucson has scheduled.
Let us help grow your business
Digital Channel 4.2
What's on KVOA and when!
Contact info for our department heads
KVOA's on air personalities!
Work at News 4 Tucson
Complete feeds of all KVOA.com stories
FCC Public File of Records, Reports, and More