Gilbert residents could soon be feeling an uptick in local taxes. According to an announcement from the Town Council, they've unanimously voted to introduce a Notice of Intent to raise taxes across the board - sales, use, and bed. The decision came to light during a Council meeting on August 20, with a formal public hearing slated for October where the final say will be had. Should it pass muster, we're looking at January 1, 2025, for these increases to become a reality.
Why's the Council looking to boost taxes? Gilbert's dealing with the same story many towns face - inflation running rampant, costs skyrocketing, and the need to diversify their financial intake. Rest assured, these tax hikes aren't without a plan. The vision is to fairly quickly pump cash into much-needed infrastructure, to keep up with a town outgrowing its britches in terms of services. A mix of bond-funding and cash-funding is on the table, with an emphasis on cash to cut costs and give taxpayers more bang for their buck – a strategy confirmed by the town’s official statement.
The lowdown on how deep residents will have to dig into their pockets? It’s not drastic, but it will be felt. A sale from 1.5% to 2% on sales tax means an extra 50 cents per $100 spent, and we're staring down the barrel of use tax going from zilch to 2%. For those passing through and needing a bed for the night, their contribution via bed tax could jump from 2.8% to a clean 5%. Details on this, alongside comparisons to neighboring tax rates, were outlined by the town's notice.
So, where's all this extra cash going? It's earmarked for projects that should make Gilbertians proud of their town. Think Parks and Rec, Police, and Fire departments, which is pretty crucial to a community's health. The list of proposed projects spans an array of high-priority items, all scoped out with citizen feedback, advisory boards, and the relentless effort of Town staff. They're estimating a smooth $55 million a year from these amendments, with a slice of this pie strictly for tourism-related initiatives due to the caveats of bed tax. The remaining windfall will bolster Police, Parks, Fire, and other needs as the Council sees fit, detailed within the town's release.
If you're keen to have your say, mark your calendar for October 22, when the Gilbert Town Hall opens its doors for a public hearing. Those unable to attend in person can catch a live stream of the event as well. And for those looking to do their due diligence, further reading and updates are available at the town's official Tax Rates info page.
