Phoenix is considering raising its sales tax by half a percentage point, to 2.8%.
The last estimate has Phoenix facing a budget shortfall of up to a $100 million.
City leaders blame the state for cutting revenue by moving to a flat income tax and eliminating a residential rental tax. Phoenix has also been paying more for goods, services and employees. Plus, federal COVID-19 response dollars through the American Rescue Plan Act are running out – Phoenix received nearly $400 million over two years.
According to the city, detailed information on the forecasted budget and multi-year forecast will be presented to the council on Feb. 25. The proposed tax increase will be considered by the City Council at a policy meeting on March 18. The next budget begins July 1, 2025.
Phoenix created a document with the history of sales tax increases and the reasons behind them.
EDITOR'S NOTE: This story has been updated to correct when a budget report will be made to the council.
-
U.S. District Judge Michael Liburdi's ruling means a Monday arraignment hearing for Kalshi has been called off. State prosecutors allege Kalshi is running an illegal gambling operation. -
The bill would make it illegal to fly a drone within a mile of a ticketed entertainment event at venues with at least 1,000 people capacity. -
ASU food service workers continued protests on Thursday, demanding higher wages and better working conditions from service provider Aramark. -
Diesel gas prices rose to $6.20 a gallon on Wednesday, according to AAA Arizona, breaking the previous record of $5.90 set in 2022. -
For the last couple weeks, The Show's Sam Dingman has been exploring the various ways people find friendship and community here in the Valley — a place where it’s not always easy to do that.
