A proposal to implement a 2.5% flat income tax for the state of Arizona has Town of Paradise Valley and city of Scottsdale lobbyists raising concerns about the municipal impact of a $1.5 billion annual cut.
Officially, neither municipality is taking a stance on the proposed flat tax policy, which is a part of a $12.8 billion spending plan for the coming budget. It was introduced in the Arizona House on Monday, May 24.
Government Relations Director Brad Lundahl says the impact to Scottsdale is estimated to be about $12.7 million. Doug Cole, hired lobbyist for Town of Paradise Valley, described the impact as a “$600,000 haircut” to municipal coffers.
