The League of Arizona Cities & Towns (the League) commissioned Rounds Consulting Group, an Arizona economic consulting firm, to analyze the impacts of a flat state income tax on local governments. The findings of the analysis confirm that failure to hold cities and towns harmless will hamstring municipalitiesâ potential for future growth, according to a statement from the League.
As lawmakers discuss and negotiate the FY 2022 state budget, communities are asking the Legislature to consider the ramifications of a $1.9 billion tax cut on cities and towns statewide. The measure could cost the Town of Fountain Hills $1 million per year, according to Mayor Ginny Dickey.