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Proposed sales tax increase in Phoenix could have large purchase exemption

PHOENIX — Even if Phoenix voters pass a proposed sales tax increase when it heads to the ballot in August, Mayor Greg Stanton wants to explore the option of keeping the city’s current tax rate for any purchases that are $10,000 or more.

“Which would be in our city items like some furniture, some jewelry sales, and some automobile sales,” Stanton said.

Mayor Stanton started looking into the idea after he spoke with the Executive Director of the Automotive Dealers Association.

“They brought to my attention policy decisions that were made by other cities in the Valley as they went through their process of making decisions about what the appropriate sales tax should be in their communities,” he said.

People tend to shop-around more often when buying expensive items, according to Stanton, and he said the last-thing he wants is the potential sales tax increase to drive away businesses and consumers from the city.

“So I thought that it would be important that we take a look at what the impact would be on our proposal and our retailers that provide sales in that category,” he said.