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Oro Valley council adopts 2.5% use tax; telecom and commercial rental tax proposals fail
Summary
Faced with budget shortfalls and rising costs, council approved a 2.5% local use tax (effective 7/1/2026) by 4‑3. Two related tax proposals — a 2.5% telecommunications tax and a phased commercial rental tax — failed on close council votes (each recorded as failing 4‑3).
On Jan. 14 the Oro Valley Town Council voted 4‑3 to adopt a local use tax of 2.5% (Ordinance O26‑02), effective July 1, 2026, while declining two companion proposals: a 2.5% telecommunications tax (O26‑03) and a new commercial rental tax (O26‑04). The telecom and commercial rental measures failed on council roll calls recorded as 4‑3 opposing each.
Chief Financial Officer Mr. Gephart framed the tax package as a response to a structural revenue challenge: the town has seen construction‑related and transaction privilege tax collections flatten and…
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