Florence Forward ➡️ 1.5 – Cent Sales Tax Initiative
As the Southeast Valley continues to grow and Florence’s state shared revenues become less reliable, our community faces an important question: how do we responsibly fund the roads and services our residents rely on today and into the future?
In recent years, Florence has experienced significant revenue challenges. The 2020 state prison closure reduced our population by approximately 3,000 residents, a 10 percent decrease, and resulted in an estimated loss of more than $3 million across the General Fund, Vehicle License Tax (VLT), and Highway User Revenue Fund (HURF). In addition, the incorporation of San Tan Valley is projected to reduce Florence’s state shared revenues by an additional $1.5 million annually. Together, these changes represent a significant financial impact for a community of our size.
At the same time, the funding communities rely on to help build local road projects has not kept pace with rising costs. State fuel taxes that support road construction have not increased since 1990. Over that same period, construction material costs have risen sharply, including asphalt up 317 percent, aggregate up 311 percent, concrete up 249 percent, and steel up 143 percent. As a result, the Highway User Revenue Fund and other shared transportation revenues are no longer keeping pace with inflation or the infrastructure needs of growing communities like Florence.
Meanwhile, Florence’s road network continues to carry increasing traffic. Hunt Highway now serves more than 17,000 vehicles per day, and Attaway Road and other key corridors are over capacity. Many roadways require widening, resurfacing, preservation, and safety improvements. And delaying projects increases long-term costs as materials and labor continue to rise.
What Is Being Considered?
In response to these challenges, the Town Council is considering a proposal to adjust the local sales tax rate from 2.0 percent to 3.5 percent.
Under the proposal:
- 1 percent would be dedicated exclusively to transportation improvements and placed in a restricted Streets Fund
- 0.5 percent would help stabilize essential services such as parks, library services, senior services, and public safety operations
Why a Sales Tax?
A sales tax approach allows residents, visitors, and the daytime workforce who shop or dine in Florence to help support the transportation system and infrastructure they rely on. It broadens participation in funding local roads while avoiding a new or increased property tax and without placing the burden on groceries, gas, or other essential needs.
What Happens Next?
The Town will host two informational open houses in March to share details and gather community input. Following those meetings, the proposal will be placed on a Town Council agenda for consideration.
Looking Ahead
Florence Forward reflects a commitment to thoughtful planning and long-term financial stability. By strengthening our own funding capacity, Florence can reduce reliance on fluctuating and insufficient state revenues, protect essential services, and invest in safer and more reliable infrastructure.
We encourage residents to stay informed, ask questions, and participate in the conversation as we work to prepare for Florence’s future.
Submit Your Comments Online
Residents who are unable to attend an open house event can share their feedback by emailing Communications & Intergovernmental Relations Manager Jeff Graves at jeff.graves@florenceaz.gov
