By james art Gilbert’s conservative city council reluctantly voted to raise taxes Tuesday night. One council member blamed the Arizona Legislature.
Last year, the legislature passed a law prohibiting municipalities from collecting tax on rents.
A city spokesman said a few weeks ago that the proposed tax increases for the city were not intended to make up for the loss of income from eliminating the rent tax, but Council Member Jim Torgeson said otherwise.
“Although the city’s operating budget was adversely affected by the loss of the residential rental tax, the proposed tax increase is not intended to ‘make up’ for its loss,” a city spokesperson said in a Sept. 24 email.
But at Tuesday’s council meeting, Torgeson said: “I say this with all my condescension: the great minds of the state have reduced the rent tax. Most people in this room opposed more apartments, but the council before us approved many thousands of apartments.
Now the city will not receive millions in tax revenue on these apartments.
Gilbert approved a series of mild tax increases to the city’s sales tax and bed tax, plus a new use tax on online vendors.
The tax increases are intended to fund police and fire departments, as well as parks and recreation.
A presentation by city staff showed the tax increases would still keep Gilbert within the range of what other municipalities charge.
“It hurts and it’s the most painful meeting I’ve been in since I’ve been here … but I think it’s necessary,” Torgeson said. He calls himself the most conservative person on the board.
City Manager Patrick Banger noted as he unveiled projects to be funded by the tax increases that Gilbert was a town of 500 people for decades before quickly swelling to a large community of 290,000 that is close to being built out. Consequently, he said, the city’s needs have grown.
Mayor Bridget Peterson was the lone vote against the tax increases, which passed 6-1. She was the last to vote and cited inflation, high gas prices, “Bidenomics” and high water and trash prices as reasons not to raise spending further.
While voting, she acknowledged that her position was unexpected, but said she could not justify all tax increases.
Torgeson has a different theory about her vote. “Two words: political theater,” he said Wednesday.
The Conservative The Goldwater Institute argues that raising taxes is illegal.
After the vote, Goldwater staff attorney Stacey Skankey said the institute was evaluating its options “to protect the rights of Gilbert taxpayers.”
Former council member Victor Petersen warned the council that the city’s planned spending trajectory is not sustainable.
“You will correct yourself one day. You’re going to feel a little breathing room and it’s going to be a few years and you’re going to be back here again because our trajectory is not going to match the economy. … It’s an easy way to do this tax increase,” he said.
Petersen is also the brother of Senate President Warren Petersen (R-Gilbert), who authored the repeal of the rent tax.
Two council members, Scott Anderson and Kathy Thielke, are leaving the council this year. In the fast-approaching general election, Aaron Accurso and Kenny Buckland are running for those seats.
The sales tax is going up as opposed to the property tax, which council members say is the lesser of two evils.
“I despise the property tax,” Thoreson said. “Hopefully our legislature is done cutting our budget for us.”
He used the example of a Gilbert resident who chooses to go out and buy a steak and pay higher sales taxes on that transaction, as opposed to a senior citizen living on a fixed income who has no choice whether to pay more high property tax.
Council members defended the need to fund parks and recreation in addition to police and fire.
“Think of a city you would never want to live in,” Councilman Chuck Bongiovanni told the audience. “And think of one reason why, whether it’s traffic, crime, schools. Whatever your answer is, it comes down to quality of life.”
He said parks and recreation projects make the city a place people want to live, and asked residents not to think selfishly about funding projects they may not think they need.
Before the vote, the city heard presentations from police, fire and parks and rec representatives. But in public comment, no one spoke enthusiastically about raising taxes.
