The economic boon of more businesses and more construction is showing up in sales tax receipts.
According to the Arizona Department of Revenue, Maricopa businesses collected $15.2 million in “transaction privilege tax” during the fiscal year that ended June 30. Though that appears to be a 22-percent increase over the previous fiscal year, City Manager Rick Horst said it’s not quite so.
“The actual number is about $14.4 million,” he said.
The extra $600,000 was paid by the state “in arrears” from the previous year after an audit cleanup, Horst said.
But the real numbers do result in a year-to-year increase of about 15 percent. In fiscal year 2017-18, Maricopa took in $12.5 million in TPT, also called sales tax.
Contracting, primarily from construction, brought in $4.7 million during the year, according to DOR. Retail collected $3.8 million.
Horst said sales tax collections continue to grow as more and more businesses come to Maricopa. However, he said he is still concerned with “leakage,” the estimated $400 million that Maricopa shoppers spend outside the city.ow
Sales tax helps the City pay for infrastructure and personnel. Horst estimated the hire of one police officer, as an example, with salary, benefits, uniform, equipment and vehicle, costs about $300,000.
“It doesn’t go as far as people think it does,” he said.