Proposal To Be Heard On Broadening The Use Of The Half Percent Sales Tax Levy

Enacted in 2015, revenues support municipal golf losses

The Oro Valley Town Council will hold a public hearing on the half percent Community Center/Municipal Golf sales tax. That tax was enacted by the Hiremath Council in 2015 to pay for the substantial losses that were projected from operating the community center on the golf courses. The estimated amount of the half percent sales tax was $2million.

Sales tax revenues more than anticipated

As LOVE has reported over time, golf and community center losses have been huge; but, recently the losses have narrowed because the pandemic has increased golf course use. In addition, sales tax revenues have increased over the six years to an estimated $2.5million. 

Municipal golf’s exclusive use of revenues at stake

The public hearing will be held at next week’s council meeting. The proposal is to broaden the use of these funds to pay for other parks and recreation facilities, amenities and operations.

What is at stake here is what appears to be in the minds of some members of council and residents a belief that the half percent revenue stream belongs to the golf courses. For example, during one council meeting Council Member Solomon said something like: “We have the money from the sales tax, so let’s just open the Pusch Ridge course.” Some residents in favor of the measure wondered why the course wasn't getting its "share" of the revenues. 

Expect a large turnout at the hearing

There are some who will be upset about any change in the use of this money. These are people who live along the golf course. They lobbied successfully last year to keep 36-holes of golf operating. They wore “green T-shirts” to the Council meetings, spoke in great numbers. It appeared to some that this high level of participation intimidated the some members of council.

Council set target subsidy levels

The council decided, in 2020, to retain 36-holes of golf and to lease the Pusch Ridge facility. In doing so, they set a subsidy target level of $750,000 within four years. That would be beyond the sunset of Winfield council majority. If that subsidy level is achieved, $1.8 million in sales tax revenue from the half-cent levy would be available for other uses. So, it makes sense to either rescind these sales tax dollars or direct them to other use.

Change in use requires council resolution

The original resolution for the sales tax levy earmarked the funds specifically for the golf course community center. Thus any change in the use of those funds has to be approved through another revenue resolution of counsel. That’s the reason for the meeting.