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Council approves repeal of city code section governing voter approval of privilege and use tax increases
Summary
On Sept. 16 the Kingman City Council approved Ordinance 1983 to repeal a city code section that had required elector approval for increases in privilege and use taxes, citing recent litigation and a desire for council flexibility on local revenue decisions.
Kingman — The City Council on Sept. 16 approved Ordinance No. 1983 to repeal a section of the municipal code that had required elector approval for increases in the privilege and use tax (transaction privilege tax, TPT). City Attorney Carl told council the repeal would restore council discretion to address revenue needs following recent litigation in another Arizona city.
Carl said the ordinance was drafted after discussions following litigation in Payson and that repealing the section would give the council flexibility to consider TPT adjustments when responding to city needs. Council made a motion to approve Ordinance 1983 and the motion carried.
No specific tax increase was proposed at the meeting; the action was a code change to remove the requirement that had been placed in the code previously. Council members and staff did not identify immediate new revenue actions during the meeting; any future change to TPT rates would require separate council action and, where applicable, public notice and legal steps.
