Local opinion: Tucson needs fair, sustainable funding

The defeat of Proposition 414 was a clear message from Tucson voters: They rejected the idea of regressive sales tax hikes. Now, the city must find a new way to fund essential community services — like crisis navigation, down payment assistance, fire, and police services — without repeating the same mistakes. As public servants, we believe the best path forward lies in a fair and sustainable solution: a small adjustment to the city’s property tax.

Sales taxes have a major flaw: They hit low-income residents the hardest and reduce their buying power. Families already struggling to make ends meet spend a larger portion of their income on necessities. A half-cent increase in sales tax, as Prop 414 proposed, would have only added to that burden, making it even harder for residents to keep up with rising costs for food, healthcare, and housing. In the end, it would have worsened the economic inequality it aimed to address.

Property taxes, on the other hand, offer a more equitable and long-term solution. They function as a wealth tax, having those who are better off contribute more. Crucially, they do not penalize the lowest-income residents for simply buying groceries or basic necessities.

A modest, marginal increase in property taxes would allow Tucson to generate the necessary revenue for vital services without deepening the economic divide. Unlike volatile sales taxes, which fluctuate with consumer spending, property taxes provide a stable and predictable source of income, based on the underlying wealth of the community.

The difference between a sales tax increase and a marginal property tax adjustment lies in its distribution. While the tax rate would apply uniformly, the actual impact would vary based on property value. Owners of higher-value properties, including commercial entities like manufacturing facilities and pipelines, would contribute more, while those with lower-value homes, often occupied by low-income or fixed-income residents, would see a smaller increase. This ensures that those who can afford to contribute more do so, while protecting the most vulnerable homeowners from undue financial strain.

For context, pipelines alone contribute billions in property value to Tucson’s tax base. By blending the contributions of commercial and residential properties, with safeguards for vulnerable groups through lower taxable values, Tucson can raise the funds it needs without overburdening those least able to pay.

A property tax increase of about 0.586% in property taxes could generate $20 million annually. This is a much smaller sum than the $80 million proposed in Prop 414, but that’s the point — Tucson doesn’t need to extract large sums of money. What the city needs are focused, responsible investments in essential services, along with transparent oversight to ensure every dollar is spent wisely.

This marginal property tax adjustment offers a sustainable funding model that can grow with the city. It prioritizes fairness, placing the burden on those who have the most to give, and ensures that low-income residents are not shouldering the weight of the city’s needs. By choosing this path, Tucson can build a stronger, more equitable future for all its residents.