Background
- Mike McAllister is a rural ranch owner in San Tan Valley who identifies as an “average voter,” not a tax expert or politician. Previously supported incorporation when living in Johnson Ranch, particularly during utility issues with Johnson Utilities (now EPCOR). Emphasizes he’s not being paid to advocate and is speaking from personal experience.
Political Process Concerns
- Suggests proponents aren’t openly discussing tax increases because “taxes is like the death of votes”. Claims governments typically wait until after incorporation to introduce new taxes. Argues this follows pattern seen in federal and city governments.
Current Tax Situation
- Arizona state sales tax: 5.6%. Pinal County sales tax: 1.1% (recently reduced from 1.6%). Total current sales tax rate: 6.7% on all purchases in San Tan Valley.
McAllister’s Tax Increase Prediction
- Believes incorporation will add a new city tax layer rather than replace existing taxes. Uses Phoenix as comparison model: 5.6% state + 0.7% Maricopa County + 2.3% city = 8.6% total. Estimates San Tan Valley would add 2-3% city tax (acknowledges no official rate has been proposed). Projects total sales tax would increase to 8.7-9.7% after incorporation.
Business Development Counter-Argument
- Disputes claim that incorporation is needed to attract businesses. Points to Home Depot and ongoing commercial development already arriving without incorporation. Argues businesses follow population growth (“location, location, location”) rather than incorporation status. Contends San Tan Valley’s existing growth is naturally drawing businesses.
Economic Impact Arguments
- Personal affordability concern. Cumulative cost illustration: $100 purchase would cost $6.70 in taxes now vs. $8.90+ after incorporation. Emphasizes that “every penny counts” in current economy.
McAllister’s Recommendation
- Encourages voters to decide based on personal financial capacity for tax increases. States: “If you’re okay with a tax increase, incorporate. If you are not okay with a tax increase, don’t incorporate”. Emphasizes civic duty: urges everyone to vote regardless of their position. Maintains measured tone rather than demanding others vote no.