Council kills out-of-town tax

Council kills out-of-town tax: "A proposed use tax on major out-of-town purchases is dead.
The fatal blow to the controversial plan came from the Flagstaff City Council but only after a staff recommendation to scuttle the proposal.
The primary reason, said Flagstaff City Manager Kevin Burke, was the steep political cost of implementing such an unpopular tax that would raise only $50,000 this year.
The new tax rate seeks to collect city sales tax primarily on business equipment as well as car and truck purchases by Flagstaff residents in communities that do not collect a local sales tax.
For example, a piece of equipment purchased by local business from an out-of-state vendor that did not pay a local sales tax could lead to a 1.71 percent tax bill.
"It is such a small return for big political capital," he said. "Anything with the word 'tax' in it is considered negative and it takes quite a bit to overcome that.""

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