In January, the city of Phoenix announced that it is exploring options to deal with a potential budget shortfall, which could include raising sales tax or cutting some services to residents. The city is required to adopt a balanced budget each fiscal year.
A Jan. 15 press release stated, “To give the City Council options as we progress through the budget process, the City has posted a notice of intent to increase transaction privilege tax (TPT) and use tax (sales taxes) by up to 0.5% (half a percentage point). This notice does not necessarily mean taxes will increase, but instead gives the Council and the community time to consider potential options to balance the budget.”
Council would have to vote to increase taxes, something that would not happen for at least 60 days from the Jan. 15 notice, to give community members time to share their opinions about any changes. The council is currently scheduled to consider the increase at its March 18 meeting. If council approved any change, it would take effect on July 1, 2025.
At the same time, departments throughout the city are submitting potential cuts in services for leadership to consider. The city also will host several budget information sessions to further explain to the public this possible tax increase, including Tuesday, Feb. 4, at Burton Barr Central Library, 6-7 p.m. Visit www.phoenix.gov/calendar/budget for a full list of upcoming budget presentations.
More information on the General Fund budget status and multi-year forecast will be presented to the Phoenix City Council on Feb. 25.
