Some industries see higher sales taxes as better fix - bizjournals:

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Some of the businesses that back Brewer’s plan don’t want new taxesa imposed specifically on them if a broader sales tax increase is not Business lobbyists and those familiar with the budget issues say othetr alternatives couldhit utilities, alcohol distributors and retailers with new taxews to help close the deficit. Vice President Martim Shultz saidthe Phoenix-based parent of supports Brewer’ds budget plan because the statwe needs to find new revenue to avoidd further cuts to education and health programs.
“An increas e of some kind of revenue is necessary to clossthis deficit,” Shultz said, adding that could includee a 1-cent state sales tax increase or expandinv sales taxes to personal services, whichu currently are not taxed. However, APS and Pinnacle West opposde a Democratic proposalimposinhg $233 million in new taxes on nonrenewable energy production and consumption. Shultz said utilityy consumers already are subject tosales taxes, and Pinnacle West is against utility-specific The Brewer tax push is coupled with spending cuts and would alloq the Legislature to curb voter-mandated spendingv to help close a $3 billion budget defici for fiscal 2010 and equally large shortfallx expected for the next few years.
Some proposals at the Arizonwa Capitol look to othetr new taxes to help solvrethe state’s financial crisis. wine and distilled spirits distributors also coulx face tax increases to help deal withthe deficit, especiallyt if Brewer’s sales tax plan fails. has floated the idea of raisinbthe state’s 16-cents-per-gallon beer tax, 84-cents-per-gallon wine tax and $3-per-gallon liquor tax to pay for children’s and indigentr health care. The beer and wine industry opposedr PCH’s effort to place a tax increasre on the2008 ballot. PCH pulled back from that but a similar alcohol tax increase could emergs as a way to deal withbudget deficits.
Shultzz said the fiscal 2011 deficit couldctotal $4 billion. Doug Yonko, Hensley’s vice president for communications, decline d to comment on where thePhoenix Anheuser-Busch Co. distributoer stands on Brewer’s sales tax push. He referreed questions to the . “Ths Beer and Wine Distributors of Arizona has not takehn a position on atax increase, becausee there’s been no specific proposal by the governor or Republica legislative leadership on that subject,” said Director Stevde Barclay.
Some business and political consultants sayliquor distributors, utilities and hospitals are pushing for various businese groups and chambers of commerce to back a $1 billion sales tax increase. Don lobbyist for the , said the industry groulp opposes new taxeson alcohol, but woul d not fight a broader salea tax increase. Steve Voeller, president of the , which opposes Brewer’sd tax hike, said utilities, hospitale and beverage distributors are prominentf among business groupsbacking Brewer’s plan. business organizations are free to advocatre whateverthey want.
We just think it’d more than a little awkward to support a tax increase on the one hand and a spendingg hike onthe other,” said Voeller, referring to GPEC and othedr business groups that favor solar tax breaks and salexs tax increases. The East Valley Partnership, economic group and are amongf thosesupporting Brewer’s budget and tax plans. APS and are majo sponsors of thosethree groups, as are hospitals and Arizon State University. SRP spokesman Jeff Lane said his utilit y had not taken a stance on Brewert budget andtax plans.
Hospitale worry that without the tax budget fixes will hurt health reimbursements to hospitals for indigent and the Arizona Health Care CostContainmentr System, the state’s Medi­caid CEO John Rivers said hospitals are open to sale s tax and other revenue streams to help avoird what could be “devastating” cuts to healtn care programs. However, he opposes Brewer’a call for voters to approve a measurr that would allow the Legislature tocut voter-mandated spendinbg on education and health care. Pinnacle West Capital Corp.
: Arizona Licensefd Beverage Association: Beer and Wine Distributors of Arizona FreeEnterprise Club: