Home | Classifieds | Place an Ad | Public Notices | Subscriber Services | 928 Media Lab | Real Estate Search | Galleries | Obits | Yellow Pages | TV Listings | Contact Us
The Prescott Daily Courier | Prescott, Arizona

home : opinions : opinions July 22, 2014


2/19/2013 10:00:00 PM
Editorial: Sales tax change could hurt locals
The Daily Courier


It is a process that has needed lawmakers' attention for years. A proposal to reform the state's complex sales tax collection system ironically would not directly affect the taxpayer; however, many businesses and municipalities have lined up on opposite sides of the argument.

The bill would overhaul sales tax collection, basically creating one return, one payment and one audit for businesses, replacing multiple versions of each that businesses operating in multiple jurisdictions must deal with, according to the Associated Press.

Good idea? The key words there are "multiple jurisdictions."

When it comes to business, the current system is overwhelmingly expensive and outdated. At the same time, some industries - such as contractors - after the changes would pay sales tax at the point of sale. This would take much of those dollars out of the rural areas and, thus, out of local governments' coffers.

"It also has a bad side when it comes to the prime contractor tax," said Sandy Griffis, executive director of the Yavapai County Contractors Association. "Local contractors often have to bring products in ... that's the point of sales tax. But they also would face, for example, the tax rates in the (Phoenix) Valley, which can be higher, putting them in harm's way for bids."

On one side is the business community, call it the metro world, where businesses of all types regularly operate in multiple jurisdictions. On the other side are businesses in the rural areas that do most of their work outside of the metro areas, but often have to bring in supplies from the big city. Joining them are the cities and towns that stand to lose revenue because of the point-of-sale losses.

"If a contractor needs a $100,000 lumber package and they have to go to Phoenix for it, the rural areas lose - and the contractor could lose the bid for the project because of the added costs," Griffis added.

A new system that could harm cities, draining millions in revenue each year because of the construction tax changes, and making business more difficult for some industries, is definitely one that needs major work before being approved.

The bill unanimously advanced Monday out of its first Arizona House committee hearing.

Even though major revisions are expected to address towns' concerns, let's also not forget the recovering housing market.

It too does not need an unintended obstacle placed in front of it.




    Recently Commented     Most Viewed
Plane crash near Sedona may have caused fire (1 comment)
One pilot, one parachute and a chance meeting that changed a life (3 comments)
One giant leap: 1st moon walk was 45 years ago today (20 comments)
Steeple height variance a tall order: Prescott Board of Adjustment denies bid for 67-foot spire (40 comments)
Editorial: City inconsistent on rule-bending (12 comments)


Reader Comments

Posted: Wednesday, February 20, 2013
Article comment by: How nice.

Are you kidding me. You say a "tax collection system ironically would not directly affect the taxpayer". What planet are you on?

It will always affect the taxpayer. If businesses want to stay in business they will always pass the cost onto the average taxpayer. If they don't pass it on they may as well shut their doors.

For all you uneducated people out there who have no clue as to how to run a business. You need to make a profit to stay in business. Otherwise what's the point. We might as well all quit and leave Obama and his kind of government with no spending money. Then we need to put Obama in Jail and elect someone qualified to run this country.


Posted: Wednesday, February 20, 2013
Article comment by: There You Go Again

Courier: Your analysis is in the weeds again. The whole point is that government tell us they 'need' the money in the first place. Many of us are on lowered incomes and working multiple jobs just to pay those taxes. You have run out of other people's money. Make do with less.



Article Comment Submission Form
Comments are not posted immediately. Submissions must adhere to our Use of Service Terms of Use agreement. The email and phone info you provide will not be visible to the public. Rambling or nonsensical comments may not be posted. Comments are limited to 1300 characters or less. In order for us to reasonably manage this feature we may limit your comment entries to five(5) per day.
Submit an Article Comment
First Name:
Required
Last Name:
Required
Telephone:
Required
Email:
Required
Comment:
Required
Passcode:
Required
Anti-SPAM Passcode Click here to see a new mix of characters.
This is an anti-SPAM device. It is not case sensitive.
   


Advanced Search

HSE - We want to hear from you
HSE- Rants&Raves
Find more about Weather in Prescott, AZ
Click for weather forecast



Quick Links
 •  Submit site feedback or questions

 •  Submit your milestone notice

 •  Submit your letter to the editor

 •  Submit a news tip or story idea

 •  Place a classified ad online now

Find It Features Blogs Milestones Extras Other Publications Links
Classifieds | Subscriber Services | Real Estate Search | Galleries | Find Prescott Jobs | e-News | RSS | Site Map | Contact Us
© Copyright 2014 Western News&Info, Inc.® The Daily Courier is the information source for Prescott area communities in Northern Arizona. Original content may not be reprinted or distributed without the written permission of Prescott Newspapers, Inc. Prescott Newspapers Online is a service of Prescott Newspapers Inc. By using the Site, dcourier.com ®, you agree to abide and be bound by the Site's terms of use and Privacy Policy, which prohibit commercial use of any information on the Site. Click here to submit your questions, comments or suggestions. Prescott Newspapers Online is a proud publication of Western News&Info, Inc.® All Rights Reserved.

Software © 1998-2014 1up! Software, All Rights Reserved