Gilbert, Arizona: A historic downtown and growing Arts District
Built on the citrus industry, Gilbert, Arizona, has turned into a growing metro Phoenix community with economic opportunity and vibrant Arts District.
The Republic
Groceries, electronics and hotel stays in Gilbert could become more expensive after the Town Council proposed tax increases that would largely be used to pay for public safety and parks and recreation improvements.
The tax increases would help pay for more than $700 million worth of town projects, adding $55 million to the town’s yearly revenue.
The Town Council is poised to vote on a 0.5% sales tax and a 2.2% bed tax increase on Oct. 22. If approved, the increases would become effective Jan. 1.
Adding 0.5% to the sales tax would bring that tax to 2%, putting Gilbert in line with Mesa’s rates but below rates in Glendale, Goodyear and Phoenix. It’s the first time in 24 years that shoppers would see a tax hike.
The bed tax, which is charged for hotel stays, would increase to 5%. The revenue from the bed tax can only be used on projects that are related to tourism.
In addition to increasing the sales and bed taxes, the Town Council will consider imposing a new 2% use tax on online purchases from companies that do less than $100,000 in sales in Arizona annually.
The council formally announced its intent to vote on the tax increases on Tuesday, but discussions on the proposal started in December at its annual fall retreat.
Unlike most other cities in the Valley, which need voter approval to increase taxes, Gilbert’s council members can make the change themselves because Gilbert is not a chartered city.
Town Council members chose to use a sales tax increase instead of sending a general obligation bond package to voters in part because Gilbert residents are not the only people paying sales tax within the town.
There also was no confidence that voters would approve a bond. The last bond for transportation projects was passed with just 164 votes in 2021. Bonds are paid back with the town’s secondary property tax.
What will new tax revenues be used for?
The council has a list of 23 projects they say are needed in the community that would be supported by new tax revenues.
Park projects make up most of the list, including park expansions, new pickleball courts and trail path upgrades, accounting for about 59% of the total funding of identified projects.
City staff at Tuesday’s council meeting referenced studies that found Gilbert had one of the lowest playgrounds per capita but with the highest percentages of families with young kids.
The tax increases would help pay for nearly $308 million to build the next phases of the Gilbert Regional and Desert Sky parks.
Public safety projects make up the rest of the items on the council’s list.
Gilbert wants to build a crime lab to analyze evidence collected at crime scenes. The town currently uses Mesa’s lab for its forensic evidence. Staff also say the town is running out of office space for police officers and proposes building a new substation and expanding an existing one.
The town’s planned advocacy center has been touted as a place that will provide “comprehensive support and services to individuals and families” who have experienced violence. Phase one of the project has been fully funded, but phases two and three would be funded with the tax hike.
The council recently recommitted to getting the center underway partly because of the increased scrutiny of the “Gilbert Goons,” saying the facility will be the ideal place to respond to community concerns about teen violence.
Remodels to several of Gilbert’s Fire and Rescue Department stations would also be funded under the tax increases.
Reach the reporter at mcdomingue@gannett.com.
