`Sin tax' considered to replace Phoenix food tax
by Jim Cross/KTAR and KTAR.com (September 14th, 2011 @ 11:57am)
PHOENIX -- A possible "sin tax" on tattoo parlors, strip joints, escort service and head shops has been suggested as a way to replace revenue from Phoenix's 2 percent food tax, scheduled to end in 2015.
Mayor Phil Gordon and City Councilman Tom Simplot put out the idea as the City Council discussed the food tax Tuesday, according to The Arizona Republic.
Gordon also suggested taxing false calls to police and firefighters and electronic billbords.
Mikey Sarrat at High Noon Tattoo said the idea is a bad one in the current economic climate.
"Right now, in this economy, it's not easy to stay open being a small business and then you start throwing these extra taxes in, that cuts into our bottom line and we don't have much bottom line to play with," Sarrat said.
He added he does not like businesses like his lumped in with the term "sin."
"We're an art gallery that puts art on people's skin. That's kind of offensive to me as a tattooer and a business owner that we're kind of being lumped into that."
The 2 percent food tax was approved in February 2010 and estimated to raise $50 million a year to help address the city's budget crisis. If it should be repealed before its sunset date of 2015, the city will need replacement revenue, council members said.
"We'll evaluate everything we've heard tonight and wee what's feasible and what's not," City Finance Director Jeff DeWitt said after Tuesday's meeting.
Sarrat said, "They're fishing for any kind of thing they can pull money on. Small businesses -- they beat us up so bad -- and if they keep hitting us, hitting us, hitting us, eventually there's not going to be a small business to hit any more."