Ad tax is a non-starter
We are grateful to the Tucson City Council for voting down the proposed tax on advertising at the March 23, 2010 City Council meeting.  This was clearly in defiance to the recommendations of the City staff that proposed the Ad Tax idea along with a stack of other creative taxes.  Back in 1972, the City did impose this regressive tax, finally phasing it out in 1993. That entire time, the Tucson Metropolitan Chamber of Commerce fought for its elimination.  We had hoped suggestion of this tax would never return.

Selectively targeting classifications of business or selective products for special tax should only occur if that tax is paying for special services or regulation that is offset by the special tax.   For instance, the gas tax is a reasonable special tax.  Cars and trucks use gas and drive on roads, therefore we tax gasoline and diesel fuel to pay for maintenance and improvement to those roads.

Business advertising, on the other hand, does not burden the City in any way.  In fact, the City benefits when business advertises.  In most cases, advertising results in more products being sold which in turn results in higher sales tax revenue.   Taxing advertising, then, is counter-productive to growing that critical revenue stream for Tucson.

By their actions on March 23rd, it would appear that the City Council agrees.

The Tucson Metropolitan Chamber of Commerce endorsed four of the seven elected Mayoral and Council candidates. This last election did, indeed, change the balance of power to be more pro-business.  The City Council rejecting the Advertising tax along with other anti-business proposals proves what I have said before, “if you don’t like the way the council votes, change the council”.  The Tucson Chamber will continue its efforts to do just that.