ORO VALLEY, AZ (Jan. 16, 2026) — Oro Valley’s Town Council voted 4–3 Wednesday night to adopt a new 2.5% use tax aimed at capturing revenue from certain large, untaxed purchases made outside town limits, while rejecting two other proposed taxes backed by Mayor Joe Winfield.
Under the action approved on Jan. 14, the council adopted the use tax but voted down separate proposals to impose a 2.5% tax on telecommunications providers and on landlords of commercial property—a measure often passed through to tenants via lease terms. The town’s finance staff estimated the approved use tax could generate approximately $375,000 to $600,000 annually.
Town officials framed the vote as part of a broader fiscal shift as Oro Valley approaches buildout and can no longer rely on growth-driven revenues that have funded services for decades. Chief Financial Officer David Gephart told the council that the town has historically relied on construction-related revenues, but those have softened as growth has slowed. The town’s public notice leading up to the vote also cited flat sales tax collections in recent years, inflation-driven pavement preservation costs, and reductions in state-shared revenues tied to Arizona’s income tax changes.
Business leaders urged the council to prioritize growth strategies rather than new taxes. The Greater Oro Valley Chamber of Commerce opposed the proposed increases, arguing that the town should focus on expanding the tax base, citing the same meeting agenda’s discussion of development options for a key Oracle Road parcel.
The public notice for the tax package indicated an expected effective date of July 1, 2026, for the proposed changes, subject to council direction and final implementation steps.
The vote underscores a widening policy divide at Town Hall: whether Oro Valley should “right-size” revenues now to achieve long-term stability, or hold the line on taxes and prioritize development to sustain future municipal revenue.