The Taylor and Snowflake Town Councils met in a joint session at Taylor-Snowflake Fire Station # 1 on Wednesday. The sole agenda item for the meeting was discussing raising the local sales tax rate. No voting occurred.
Currently, the municipal sales tax rate for Snowflake and Taylor is 2%. The discussion was centered around raising the rate in both towns to 3%, the rate recommended by Taylor Town Manager, Gus Lundberg, and Snowflake Town Manager, Brian Richards.
Raising the tax rate is not a new concept. The possibility of raising taxes was discussed over a year ago when the towns began considering building a recreation center. That recreation center has not yet materialized due to the pool remodel; it being the current priority.
Currently, Snowflake, Taylor, and Show Low have the lowest sales tax rates on the mountain at 2%. Other local municipalities have a 3% tax rate including: Eager, Holbrook, Pinetop-Lakeside, Saint Johns, Springerville, and Winslow. It was noted, however, because of their volume of revenue, Show Low can afford to keep a low tax rate. Other local communities, including Snowflake and Taylor, do not have the same luxury.
Mayor Smith asked what amount of additional revenue a one percent tax increase would generate for the towns. Brian Richards estimated that a conservative number would be $300,000 to $500,000 a year for Snowflake. Gus Lundberg didn’t give an estimate but noted that Taylor collected close to $2,000,000 last year in sales tax revenue, and increasing it by 50% could potentially bring in an additional $1,000,000 a year.
Brian Richards stated that even with the additional revenue, the towns would still be behind in funding many services. He estimated that the police department is underfunded by $3,000,000 for the services it currently provides. He also stated that there are ten to fifteen other places where this additional revenue could be spent. Mayor Smith agreed with Mr. Richards and added his concern that without additional revenue and with all the new residences and building occurring in the community, the towns could fall even further behind in providing services. Snowflake Mayor, Lynn Johnson, was not present.
A concern about large purchases was brought up like a new vehicle or a lumber package. The discussion led to potentially implementing a tiered rate. For example, any purchase over $5,000 or possibly $10,000 would still be taxed at 2% and all small purchases would then be taxed at the new rate of 3%.
The discussion then turned to consideration of the residents of Taylor and Snowflake. In relation to communicating with the residents about what the tax increase is and what it is for, Councilman Byron Lewis stated that the towns could learn from the county when they campaigned for the jail district. (The jail district proposition initially failed due to Navajo County’s lack of communication to its residents.) Councilman Kris Neff asked about timing and was worried about backlash but recognized that there is never a good time to raise taxes. Councilwoman Perkins stated that she doesn’t really want to raise taxes but that everyone wants amenities; this tax increase could help provide more options. Councilman Shawn Palmer noted that this tax would be spread out and paid by out-of-town spenders, which he estimated to be 30% of all buyers. Councilman Jason Brubaker was unsure about the timing but noted that he was in favor of moving forward with the public hearings. Councilman Dustin Hancock stated that people would be upset at any time. Councilman Cory Johnson added it would be better to do it now than when fuel is 4 bucks a gallon.
It was noted that Taylor and Snowflake are not part of any fire district and that property taxes in other areas of the county are significantly higher where there are fire districts; an additional argument in favor of raising the sales tax rate. Councilwoman Alison Perkins shared that her property taxes were significantly higher when she lived in Show Low compared to her current property taxes in Snowflake.
To make the rate change, each town would have to pass an ordinance which would raise the rate. Part of the ordinance process is to have a public hearing by each town. Mayor Smith suggested a joint public hearing rather than meeting individually. Mayor Smith then asked if anyone from either council was opposed to the tax. That question had no responses from members of either council. There was a consensus to have a joint public hearing in the first part of April. As a joke, Gus Lundberg suggested April Fool’s Day.
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Hunter...thanks for your coverage of Town Council meetings for both Snowflake & Taylor. It highlights and keeps us informed about what is front and center with our local government.
Optimal funding of municipal services, facilities & capital improvements for our twin communities is an ongoing challenge; especially with the growth we are currently experiencing.
The concerns mentioned by council members of both towns offer insight on why an increase in sales tax rates should be considered.
I’m satisfied that moving forward with public hearings on this issue is a timely, responsible approach.
Hopefully, we as residents, businesses and other organizations will see this as an opportunity to come together and take an active part in answering our current needs for the benefit of everyone; and moreover, continue to develop viable options (public & private) to address future needs.
Again, thanks for your newsworthy contributions.