Phoenix Mayor Kate Gallego, who also is chair of the Maricopa Association of Governments, welcomed the Arizona Legislature’s decision to allow voters to decide whether to extend the half-cent sales tax for transportation, but she was not pleased it was coupled with a tax cut pushed by Republicans.

A bill repealing a tax on home and apartment rentals that has been a key issue for legislative Republicans for two sessions was sent to Democratic Gov. Katie Hobbs on Monday after sitting on the Senate president's desk for the past seven weeks.

House Speaker Ben Toma, R-Peoria, said Hobbs has agreed to sign it as part of negotiations between her and Republicans legislative leaders to approve the vote on an extension of a transportation tax in Maricopa County.

“After months of negotiations, I am glad that our robust, unanimously approved transportation plan will finally reach the voters of Maricopa County,” Gallego said in a release.

“This legislation is how we will continue to support our region’s record growth, and with approval from our voters, its passage will ultimately mean that we can deliver on improved and expanded transit and transportation services that connect county residents to jobs, education and more.”

However, advancing Proposition 400 came at a cost for cities like Phoenix, the mayor said.

Gallego said the rental tax cut could affect local governments as soon as next year.

“As such, I cannot and will not support any action that would take away the power of cities to levy a residential rental tax, as this revenue is how we fund public safety hiring, improvements to parks and preserves and neighborhood public safety grants.”

The legislation would take away more than $230 million a year in revenue that a majority of the state’s 91 cities and towns collect, according to a lobbyist for the League of Arizona Cities and Towns.

"The 75 cities that are going to be directly impacted by this, they've only got two options should this bill be signed,'' the League’s Tom Savage said. "They're going to have to either cut services, or they're going to have to increase local taxes to make up for this loss.''

But Senate Republicans who called a news conference about the bill said cities were flush with cash and criticized them for not voluntarily eliminating the rental tax. And they said they wanted 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%.

"This is (money) to help people put food on the table, give them an extra tank of gas in the car,'' said Senate President Warren Petersen, R-Gilbert. "And we are ready to provide relief.''

Former state Sen. Steve Kaiser, a Republican who resigned in June after championing the rental tax cut this year, criticized cities and the League for fighting the repeal.

"Multiple mayors came to the Capitol armed with their special interest lobbying group to kill this bill, a lobbying group ironically, that is paid for by the citizens of those cities,'' Kaiser said at the news conference. "They did not come to the Capitol to advocate for their citizens but instead for their coffers.''

Gallego said: “If the legislature wishes to push forward attempts to effectively defund our police and firefighters, I strongly urge them to come to the table and discuss how they can help us recoup the lost funding.”  

Capitol Media Services contributed to this story.

We’d like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org.