NOTICE OF INTENT TO IMPOSE OR INCREASE FEES OR TAXES
A Public Hearing on the proposed water rate increases and fees will be held on Wednesday, June 3, 2026, at or after 6 p.m. in the Town Council Chambers
https://www.orovalleyaz.gov/Government/Departments/Water-Utility
60-day notice:
PUBLIC NOTICE: Tax Changes
Pursuant to Arizona Revised Statutes Sec. 9-499.15, the Town of Oro Valley is hereby giving notice of proposed adoptions of, or changes to, municipal taxes or fees.
Notice Date: 4/9/2026
Council Date: On or after 6/17/2026
Pursuant to ARS 9-499.15(2), the Town of Oro Valley hereby gives 60-day notice of its intent to vote on implementation of a Use Tax up to 2.5%; subject to Town Council direction. Town revenues have been impacted by the inability of gas tax revenues to keep up with significant inflation in pavement preservation. Further, Town revenues have been impacted due to SB1828, which transitioned the state’s individual income tax rate to a flat rate of 2.5%. State income tax is distributed to cities and towns based on its population in relation to total population of all cities and towns and is based on collections from two years prior. The Town relies on estimates provided by the State Joint Legislative Budget Committee (JLBC) for state shared income tax projections. These actions will result in less ongoing state shared income tax revenue to the General Fund compared to prior projections had the tax rate not decreased. Finally, overall Town sales tax collections, which comprise the largest operational revenue source for the Town, have been flat for the past three years. These new taxes will be utilized for capital needs and purposes of the Town and may also be used to offset significant inflation experienced in its pavement preservation program.
The effective date for proposed changes to the Use Tax is expected to be July 1, 2026.
New Tax Justification Report(PDF, 81KB)