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Apache Junction to lose $1.6M with repeal of tax on home, apartment rentals

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The city of Apache Junction will not receive more than $1.6 million for its coffers beginning next fiscal year under a bill signed by Arizona Gov. Katie Hobbs repealing a tax on home and apartment rentals. It has a delayed effective date of 2025.

Apache Junction will not receive $1,685,249, according to Capitol Media Services.

“For the city of Apache Junction, the possible consequences of the rental tax repeal would be among the largest impacts, percentage-wise, in the state, for the city’s general fund in fiscal year 2024-25. As such, we would address that possible loss of revenue in our budget discussions accordingly,” Apache Junction City Manager Bryant Powell said.

The city of Apache Junction’s general fund for fiscal year 2023-24 has $55,442,831 for expenditures such as for the mayor and city council, the city manager, city attorney, and administrative departments such as finance, information technology, human resources and administration.

"The rental tax goes into the general fund to operate the entire city. This does include public works to include our roads, parks and recreation, library, police, animal control, as well as the city administration," Apache Junction Mayor Chip Wilson said. "The impact will affect every operation of the city. This loss will be felt by every department, some more than others; depends on their share of the funds. "

The governor had been expected to sign the bill as part of a deal with Republicans in the Legislature to allow Maricopa County residents to vote on whether to extend a half-cent sales tax for transportation.

According to the League of Arizona Cities and Towns, the legislation signed by the governor takes away more than $180 million a year in revenue that 75 cities and towns collect.

Richard H. Dyer can be reached at rdyer@iniusa.org, or on Twitter @rhdyer. To voice your opinion on this story, connect with us at AzOpinions@iniusa.org.

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