Gilbert residents oppose proposed sales tax increase amid rising development fees and inflation concerns

In a heated session at Gilbert Town Hall, residents voiced their concerns over a proposed sales tax increase, which could rise from 1.5% to 2%. The meeting, held on October 22, 2024, drew passionate commentary from community members and council members alike, reflecting a deep divide over fiscal policy and its implications for local quality of life.

James, a representative from the Home Builders Association of Central Arizona (HBACA), opened the public comments by expressing strong opposition to the tax increase. He highlighted a recent surge in development impact fees—125% in North Gilbert and 95% in South Gilbert—arguing that the proposed construction tax increase would be unconstitutional under Proposition 126, which prohibits tax hikes on services. His remarks set a critical tone for the evening, prompting further discussion among council members about the legality and implications of the tax.

Michael Benson followed, urging the council to reconsider the tax in light of the current economic climate, suggesting that it could negatively impact residents. He called for greater transparency in spending and proposed forming a community group to discuss the matter further.

Brock Wilson echoed these sentiments, emphasizing that Gilbert already has one of the highest sales tax rates in the nation. He argued that maintaining lower tax rates is essential for attracting shoppers and large purchases, a sentiment that resonated with many in attendance.

Victor Peterson, another resident, lamented the town's increasing tax burden, noting that town revenues had surged by 50% over the past four years, outpacing wage growth. He cautioned that the proposed tax increase would not address the underlying issues of unsustainable spending and could lead to future financial crises.

As the council deliberated, Vice Mayor Anderson suggested separating discussions on the bed tax from the sales tax, highlighting the importance of the bed tax as a revenue source primarily paid by visitors. Council members discussed the necessity of the sales tax increase to fund essential services, including public safety and infrastructure improvements, while acknowledging the challenges posed by rising construction costs.

Council member Keproski defended the tax increase as a means to maintain Gilbert's quality of life, arguing that it would spread the financial burden equitably among all who spend in the town, rather than solely on homeowners. This perspective was met with mixed reactions, as some residents expressed frustration over the lack of alternative solutions to funding community projects.

The meeting concluded with a sense of urgency as council members recognized the difficult balance between maintaining quality services and managing tax rates. As discussions continue, the future of Gilbert's tax policy remains uncertain, with residents keenly aware of the potential impacts on their community's economic landscape and overall quality of life.