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Tusayan council approves TPT increase to 4% to fund capital projects
Summary
The Council adopted Ordinance No. 2026-02 raising the Transaction Privilege Tax from 2% to 4%, planned to take effect October 1, 2026, and the Council emphasized the tax increase is limited to items already in the tax base and will fund capital projects and potential bonds.
The Tusayan Town Council voted July 14 to increase the town’s Transaction Privilege Tax (TPT) from 2% to 4% and authorized language intended to preserve existing exemptions, including sales of food for home consumption.
Town Manager Clifton summarized prior workshops and said the additional revenue would be used to secure a future municipal bond for major capital projects. "The increase is planned to take effect October 1, 2026," Clifton said. Mayor Clarinda Vail confirmed that exemptions for food for home consumption remain in place and pointed to the relevant Exhibit A language in the draft ordinance to assure residents that the tax base is not being expanded.
Council Member Collet moved to adopt Ordinance No. 2026-02 and Vice Mayor Brush seconded; the motion carried with all members recorded as voting aye. The Council and staff said revenues from the increase will flow into the General Fund and then be transferred to dedicated capital project funds when projects are ready to be funded.
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