Keeping Tax Revenue Local: The Case for San Tan Valley Incorporation

Jean Stockton’s View

Local vs. Out-of-County Shopping

County Tax Retention

  • When shopping in Pinal County, county taxes stay within the local county
  • Shopping in Queen Creek (Maricopa County) sends tax revenue to enhance their community instead

Revenue Loss to Queen Creek

Significant Tax Drain

  • Stockton has heard that anywhere between 15-30% of Queen Creek’s sales tax comes from San Tan Valley residents
  • She acknowledges not knowing Queen Creek’s total sales tax collection but believes it’s a “significant amount”
  • With city incorporation and local sales tax, this money would stay in San Tan Valley

Taxation Without Representation Issues

Funding Services San Tan Valley Can’t Use

  • San Tan Valley residents help build fire stations for Queen Creek
  • San Tan Valley residents help build aquatic parks for Queen Creek that they cannot access
  • Many residents are upset about this inequitable arrangement
  • If San Tan Valley had city sales tax funding local projects, residents should be able to use those facilities

State Revenue Sharing System

Current State Tax Structure

  • San Tan Valley residents help build fire stations for Queen Creek
  • San Tan Valley residents help build aquatic parks for Queen Creek that they cannot access
  • Many residents are upset about this inequitable arrangement
  • If San Tan Valley had city sales tax funding local projects, residents should be able to use those facilities

Statewide Distribution

  • 91 municipalities across Arizona collect state-shared revenue that San Tan Valley residents help generate
  • According to Stockton’s research, 45 of these communities have no city property tax

Tax Structure Comparisons

Misleading Property Tax Arguments

  • Critics cite that 46 cities have higher property taxes than San Tan Valley
  • However, they don’t mention that 45 cities don’t have any city property tax at all
  • The actual situation is a 50/50 split

Financial Viability Evidence

Track Record of Municipal Success

  • Research shows no Arizona municipality has ever filed bankruptcy
  • Success requires electing fiscally responsible town council members
  • Key principle: don’t spend more money than what they collect
  • With the right leadership, San Tan Valley can be successful

Core Argument

Incorporation would keep locally-generated tax revenue within San Tan Valley, allowing the community to fund its own services and infrastructure rather than subsidizing neighboring municipalities while receiving limited benefits in return.

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Keeping Tax Revenue Local: A Call for Incorporation - Pinal Post