---
If we asked you your budget for the year would you add your saving account to it? Well, that's what the Town Of Oro Valley does, and all other municipalities, in describing the dollar size of their budgets.The actual 2013-2014 Oro Valley Town Manager Recommended Budget is $ 62.2 million in revenues and $60.7 million in spending, a surplus of $1.5 million. This surplus will bring total unspent Oro Valley "contingency reserves" to $33.9 million at the end of 2014. Thats a nice cushion!
You think that its time to rescind the 2% increased in the utility tax? You think? You think that Oro Valley needs any more sources of sustainable revenues (i.e property tax)? You think?
The major source of revenues to the fund is money that you put into it, either from the sales taxes you pay in Oro Valley or from money "state shared revenues". And where does the state get its money? From sales taxes and from an income tax. These are taxes that you pay.
If you look at the water utility fund, you find that 95% of the revenues come from water sales. You also pay for that! Plus, of course, you pay a utility tax on top of that that goes just to the town.
The bulk of the dollars in the other funds also comes from you. Two are add-ons to the water bill. Another is the self-insurance fund, which was part of the general fund. A fourth comes from the gasoline tax you pay.
Funding sources other than you are few in number and in dollars. They include impact fee funds and seizure funds. We're talking may $2 Million.
So, the next time that a politician says that Oro Valley needs yet another sustainable revenue source, tell them: "Don't look at me." Oh yes, and do ask for them to rescind the utility tax.
---
1 comment:
More Hidden Taxes?
Transaction Privilege Tax (TPT)/Licensing
(Commonly referred to as a Sales, Resale, Wholesale, Vendor or Tax License)
If you are selling a product or engaging in a service subject to transaction privilege tax, you will most likely need to obtain the state transaction privilege tax (TPT) license from the Arizona Department of Revenue (commonly referred to as a sales tax, resale, wholesale, vendor or tax license) and a transaction privilege tax or business/occupational license from the city(ies) in which you are based and/or operate.
The Arizona transaction privilege tax is commonly referred to as a sales tax; however, the tax is on the privilege of doing business in Arizona and is not a true sales tax. Although the transaction privilege tax is usually passed on to the consumer, it is actually a tax on the vendor. The builders can pass these taxes onto the buyers (consumer) in the sale price of the residential or commercial development. Indirectly, a consumer may be paying these (hidden?) taxes.
These construction sales taxes are split into a number of impact fees (e.g. Parks, Police, etc.) that a local government uses to support services provided by the municipality for new development.
An impact fee is a charge on new development to pay for the construction or expansion of off-site capital improvements that are necessitated by and benefit the new development.
John Musolf
Post a Comment