The Glendale City Council voted for a secondary property-tax hike and added a two-tiered sales-tax rate on Tuesday. The sale tax rate exempts purchases over $5,000 from an already approved sales-tax increase.
The secondary property-tax increase will place 2.2 percent tax on large purchases rather than the 2.9 percent increase approved earlier this month. The sales-tax hike will go into effect in August.
Council members Norma Alvarez and Phil Lieberman opposed both increases.
The City projects that the sales-tax increase will add about $23 million to the City’s coffers. The City said that cuts would be necessary without the increase, including cuts to the police and fire departments.
Council opted for the two-tiered sales tax after business leaders were concerned shoppers would avoid big-ticket purchases in the city.
Sands Chevrolet supported the tiered tax, while the Home Builders Association of Central Arizona opposed it.