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Prescott Voters Pass Sales Tax Hike To Pay Off Pension debt

Visit-Prescott.com

Prescott voters have approved a 0.75 percent pension-related sales tax increase with 54 percent of the voters in favor of the measure.

The Daily Courier reports the city will raise the municipal sales tax by 0.75 percent to help pay off its $78 million debt from its Public Safety Personnel Retirement System. The sales tax increase will go in effect Jan. 1, 2018. It will be implemented for 10 years or until the debt is nearly paid off and is expected to generate $11 million per year.

Voters turned down a similar proposition to reduce the debt two years ago by a 56 to 44 percent margin. Supporters of the proposition say the measure passed this time around because of grassroots support and a compelling story.

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