Local opinion: Let’s build Tucson together -- a smarter path to economic growth

As a proud Tucson business owner, I’ve always believed in investing in our community. I’ve hired locally, supported neighborhood initiatives, and worked hard to create a space that supports both my family and my neighbors. That’s why I’m writing today — not to criticize, but to offer an alternative solution and collaborate — as the City of Tucson considers new tax increases that could have unintended consequences for the very people we all serve.

A brief look at the proposed tax increases highlights some real issues:

— The proposed increase in the public utility tax from 4.5% to 5% will significantly raise operating costs for businesses like mine and will establish the state’s highest utility tax rate. These aren’t just business expenses — they’re community expenses. They affect employee wages, maintenance budgets, and the ability to support local programs. For lower-income residents, rising utility bills mean difficult choices between basic needs. Utility costs are regressive — they hit hardest where budgets are tightest.

— The proposed increase in pawn shop and secondhand transaction fees from $1 to $3 per transaction would raise revenue off of our most vulnerable residents.

— Similarly, the proposed changes to the Transient Occupancy Tax (TOT) — raising it to a flat 9%, with short-term rentals facing 10% — could make Tucson less competitive as a tourist destination. We’ve already heard concerns from hoteliers and RV park owners that these surcharges are discouraging visitors. That’s not just lost room revenue — it’s lost restaurant tabs, retail sales, and cultural engagement.

Earlier this year, Tucson voters expressed clear concerns about affordability by rejecting a proposed tax rate increase aimed at addressing the city’s budget shortfall. I don’t believe that Tucson voters will be excited to vote for this new proposal either. Therefore, we must ask: Is there a way to reach that goal without placing additional burdens on residents and businesses?

Let’s work together for our shared constituents

This shouldn’t be a matter of “Us vs. Them.” Tucson’s business community and city government share the same core stakeholders: our customers, our employees, and the city’s constituents. These are the same people — families, workers, students, retirees — who rely on both public services and local businesses to thrive.

When we work together, we can create solutions that serve everyone. That’s why I believe it’s time to revisit and modernize a policy that once held great promise: Tucson’s local procurement preference ordinance.

A second chance to get it right

Tucson previously enacted a local vendor preference ordinance in 2012, designed to give a modest edge to businesses based in Pima County. Unfortunately, the ordinance was struck down in 2014 by the courts for being discriminatory to non-local businesses and for failing to clearly define what “local” meant.

But that doesn’t mean the idea was wrong — it just means the execution was flawed. We now have the opportunity to do it better.

A modernized ordinance could:

— Clearly define “local” as businesses owned by residents of Tucson or Pima County

— Cap preferences at 5%, ensuring fiscal responsibility and competitive fairness

— Apply to contracts under a certain threshold to avoid federal conflicts

— Include transparency, accountability, and economic impact tracking

This isn’t just about fairness — it’s about economic strategy. Redirecting even a small portion of the city’s procurement budget to verified local businesses could generate millions in local economic activity and new tax revenue — without raising rates.

If Tucson redirected just 10% of its $500 million procurement budget to verified local businesses, we could see:

— $50 million in direct local spending

— $90 million in total economic impact (with conservative multiplier)

— $5.4 million in new tax revenue from increased local transactions

That’s nearly equal to the revenue the city hopes to raise from tax hikes — but without burdening residents or businesses.

Tucson’s future depends on collaboration. Let’s come together — city leaders, business owners, and residents — to find solutions that strengthen our economy without placing undue strain on the people who make Tucson thrive.

Let’s not tax Tucson into decline. Let’s build a smarter, more inclusive future — together.