Star Valley Work-Study Session To Talk About Rental Taxes

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Star Valley’s Mayor Chuck Heron is promising one of the shortest council meetings Tuesday with nothing major scheduled on the agenda.

A work-study before the meeting discussing the town’s rental tax will likely be the only area of discussion.

The town currently imposes a 2 percent tax on leasing or renting real estate.

“Anyone that is renting property has to pay the tax, it is kind of like sales tax,” Heron said.

Councilmember George Binney reportedly wanted to do away with the tax, but after learning the tax brings in a considerable chunk of the town’s budget, he did away with that idea.

“He thought that it was focused on the few who had to pay extra taxes,” Heron said. The tax is commonly referred to as the “trailer tax” because the majority of persons who pay it live in rental trailers because Star Valley does not have any apartments.

Heron said every town in Arizona has some kind of lodging tax and removing the tax would have a large fiscal impact on the town.

For fiscal year 2008, the real estate tax brought in $25,400 or 12 percent of total collections for the town. All the money collected goes into the law enforcement fund.

The purpose of the work-study Tuesday is to discuss the tax, but no action will be taken. The work study starts at 5:30 p.m. at the Star Valley Baptist Church. The regular meeting begins at 6:30.

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