Friday, October 19, 2007

Dip in Mesa's Sales Tax

The Republic is reporting that there is a dip in sales tax revenues to start the new fiscal year. Dips happen in sales from time to time, when people are concerned about the economy, or war, or lots of different reasons. In end, it usually doesn't make that big of a difference because as long as spending continues at a relatively decent pace, revenues will eventually catch up.

In Mesa's case, however, it makes a much bigger deal because sales tax is one of the biggest revenue sources that we have. Other cities use more stable sources of revenue such as a primary or secondary property tax to keep their services working. Mesa, on the other hand, uses that wonderous roller coaster that is sales tax revenue. Voters made it clear that they didn't want a property tax... and I am fine with that. However, we need to look for more stable ways to boost revenue when the economy hiccups.

Hopefully, this will end up being nothing, but who knows. More cuts may be on their way.

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