Report Claims Prop 126's End To Service Tax Threatens Education

Published: Thursday, October 11, 2018 - 10:31am
Updated: Thursday, October 11, 2018 - 11:22am

A new study by the Grand Canyon Institute claims there are holes in Proposition 126, the proposal to end service taxes, and it's forming unusual alliances between political foes.

If Prop 126 passes, the study predicts a $126 million hit for state schools by 2021 and deep cuts to Maricopa and Pima counties' transportation funding.

The "Citizens for Fair Tax Policy" proposition authored by the Arizona Association of Realtors bans taxing realtor commissions and other services such as veterinary and health care. They insist existing service taxes won't be impacted, even if they expire.

The report has rallied opposition across party lines — including Gov. Doug Ducey and his Democratic opponent David Garcia — who worry a "Yes" vote would cut off a key funding source for schools and roads.

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