Bill offers tax break to rural residents
 
By Suzanne Adams
Kingman Daily Miner
 
In an already tight year, things may get even tighter for cities in Mohave County. A new senate bill introduced by Sen. Bob Burns of Peoria would give county residents living outside incorporated areas a 15 percent credit on their income taxes.

The credit would come out of the Urban Revenue Sharing Fund. The state collects income tax from residents, deposits it into the Urban Revenue Sharing Fund and then distributes the money to cities. The amount of money each city gets depends on its population.

This fiscal year, according to officials from the three major cities in Mohave County, Kingman will receive around $3.6 million, Bullhead City around $5.38 million and Lake Havasu City around $6 million.

The numbers are slightly skewed because they are based on income taxes collected two years ago, Bullhead City Public Information Officer Rob LaFontaine said.

The county does not get any money from the fund, County Finance Director John Timko said.

Sen. Ron Gould, who is a co-sponsor of the bill, said the tax is unfair to residents who live in unincorporated areas because they do not see any benefit from the tax.

Lake Havasu City Finance Director Gayle Whittle disagrees. Residents who live in unincorporated areas use streets and infrastructure when they come to the cities, she said. A tax credit to residents in unincorporated areas means that those residents could essentially use city roads and services for free.

According to figures from the Arizona Department of Economic Security, 75,171 residents live in unincorporated areas of the county, and 128,951 residents live within the limits of Lake Havasu City, Bullhead City, Colorado City or Kingman.

Kingman Finance Director Coral Loyd said cities would have to either cut services or find a way of increasing the amount of funding they get locally if the bill passes.

The League of Arizona Cities and Towns has pledged to fight the bill.

Burns introduced a similar bill last year but it did not make it out of committee.

LaFontaine said he is hoping the same thing happens this year.
 
KingmanDailyMiner.com
Originally published February 12, 2008
 
Back