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Oro Valley council adopts use and telecommunications taxes, declines commercial-rental tax
Summary
In a split vote, council adopted a 2.5% use tax and a 2.5% telecommunications tax to diversify revenue; a proposed commercial rental tax was debated at length and failed to pass. Council cited structural revenue pressures and rising pavement and public-safety costs in support of the measures; business groups urged caution.
The Oro Valley Town Council on Jan. 14 approved two new local tax measures — a 2.5% use tax and a 2.5% telecommunications tax — and rejected a proposed commercial rental tax after extensive public comment and council debate about impacts on businesses and residents.
Chief Financial Officer Dave Gephardt framed the package as a response to a structural imbalance in the town’s general fund: growth-dependent revenues have flattened while pavement-preservation and public-safety costs have risen sharply. He said the town faces a…
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