A bill repealing a local sales tax on residential rentals was signed by Gov. Katie Hobbs on Tuesday. This will result in a loss of $130,596 in revenue to the Town of Paradise Valley.
“The repeal doesn’t take effect until Jan. 1, 2025, so there is no immediate impact to Paradise Valley’s budget in the 2023-24 fiscal year,” Paradise Valley Town Manager responded to a request for comment. “Staff will discuss the effects of this legislation with mayor and council, as part of planning for next year’s budget and beyond.”
The bill is meant to help low-income renters during a period of high inflation by getting rid of the tax, which is levied on top of rents, at rates that average 2.4%, Senate Republicans said in a news conference.
