Phoenix vice mayor says half-percent sales tax increase would support community services

PHOENIX — Are you willing to spend an extra penny on coffee each day to maintain community services in Phoenix?

Keeping libraries, parks, pools and other venues accessible is a major reason for the city of Phoenix’s proposed half-percent sales tax increase, according to Vice Mayor Ann O’Brien. She represents District 1 on the Phoenix City Council.

If the proposed increase is enacted, it will have a minimal impact on consumers, she told KTAR News 92.3 FM’s Arizona’s Morning News on Monday.

“On a cup of black coffee, it’ll increase a penny. Dinner out for four will increase by about 40 cents,” O’Brien said.

Why are Phoenix officials considering half-percent sales tax increase?

She explained that the city’s budget shortfall is partially because of a 2023 state law banning rental taxes that went into effect two months ago.

“And that rental tax cut, which was about $7.50 a month per renter, is a $120 million hit to the city of Phoenix budget,” she said.

O’Brien said officials are open to cutting spending to help make up for the budget shortfall, but a sales tax increase is necessary to close the gap.

“We will be doing some cutting, but we cannot do it without looking at this increase,” she said.

The proposed increase will go to a vote on March 18. If the increase is approved, it would go into effect on July 1.

“The cities are obligated to have a balanced budget; we don’t get to print money,” she said. “But, more importantly, things like our fire department, our police department, parks, libraries, our local services that our citizens really depend on could be hit substantially.”

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