Letter: Chino's tax base
I read recent comments by a Town Council election candidate, Alex Harris, in the Chino Valley Review that CV voters are mostly concerned with economic development and the tax base. They should be concerned as they are paying 1.1 percent more sales tax to buy locally in Chino Valley than in Prescott and 2 percent more than in Prescott Valley.
The recently approved Chino Valley town budget includes a sales tax revenue estimate of only $1.266 million for the fiscal year. I have been made aware that almost 70 percent of CV retail sales migrate mostly to Prescott and Prescott Valley. This suggests that a large part of almost $2.96 million in potential revenue is hemorrhaging elsewhere.
Both cities have used tax dollars to attract retailers. In my opinion, this method is something Chino Valley needs to consider.
Due to its location and with less population density and lower income, Chino Valley will most likely never have the scope of comparable retail development and a certain amount of retail sales and tax dollars will still bleed to Prescott and PV.
On the plus side, Chino Valley has relatively cheap land suitable for retail development; but no sewer available; and no water as Prescott appears to have stranglehold on Chino Valley’s public water supply.
It seems to me that given suitable development, the recapture of a portion of the 70 percent sales tax revenues now being lost could buy a lot of sewer and water infrastructure for our town.
Sales taxes are one of the fairest method of taxation as it is based on consumption. Do not increase the sales tax rate but consider reducing it to be competitive, but do increase the tax basis of sales volumes by effecting new retail development to recapture that which we are now losing.