Arizona residents will go to the polls May 18 to decide on a temporary 1% increase in the state sales tax. The Senate narrowly approved the election on a 16-to-12 vote last week, and the House subsequently passed by a margin of 34 to 25.
Gov. Jan Brewer has been asking for the tax hike to help deal with an ever-growing state revenue shortfall since she became governor in early 2009.
The revenue shortfall in fiscal 2011 is estimated at $3.4 billion. State leaders are currently grappling with a deficit for fiscal 2010 of some $1.4 billion.
If approved by voters, the measure would raise the tax to 6.6% from the current level of 5.6% for three years. If voters approve, the higher rate would go into effect June 1.
The higher sales tax rate would generate an additional $940 million a year. An average family would pay an additional $438 per year, according to a legislative report.
Following the vote, the governor praised the Legislature for setting the election.
“At long last, the voters get a voice,” Brewer said in a statement. “It is a voice key members of the Legislature and I have fought for, a voice for our children and our future, and it was worth the effort.”
Brewer urged quick legislative action on pending budget measures.
“Delay in enactment of balanced budget proposals will result in larger deficits, further debt, and the need for even greater spending reductions beyond the historic reductions I have already proposed and implemented,” she said.
