A budget proposed by Republicans in the Arizona Legislature could have a dramatic effect on downtown Tucson by eliminating a special tax district that has helped redevelop the area.
In 1999, voters approved creating the Rio Nuevo District around downtown Tucson. Under its special tax model, state sales tax revenues collected inside its borders that would usually leave Tucson are instead kept there and reinvested.
The district would be eliminated under a budget proposal unveiled this week by Republicans who control the state legislature. They estimate it would bring the state $19 million a year.
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