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Arizona cities, towns, propose own tax simplification plan

PHOENIX — Cities and towns opposed to major provisions of Gov. Jan
Brewer’s overhaul of the state’s complex sales tax collection scheme are rolling
out their own ideas to simplify the system.

The cities’ plan released Wednesday ditches Brewer’s elimination of a tax on
construction. Instead cities want a study of how an overhaul could be crafted to
avoid losses for cities.

Municipalities oppose Brewer’s plan because it shifts taxes on new construction
and other contracting. They say they stand to lose millions in revenue.

The cities’ proposal includes many of the goals Brewer wants, such as single
audits and a single point of payment. Businesses often now undergo multiple
audits from different cities and counties.

They’ve been negotiating with Brewer and lawmakers since she rolled out her
plan in February.


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