DOUGLAS, Ariz. (KGUN) — The City of Douglas is considering a suspension of its 3.8% amusement tax, which affects gyms and event venues, for the next three years.
If approved, the move would provide tax relief for consumers.
“With this new move by the mayor and council, I think it’s a step in the right direction for the city of Douglas,” said Nikki Valenzuela, General Manager of the Cochise County Fair.
Douglas Mayor Jose Grijalva emphasized the impact of the tax on businesses that struggled during the COVID-19 pandemic.
“These are all entities that suffered during COVID and did not get any help in the process, we just shut them down. So in my opinion, this is the least we could do and give our citizens a tax cut too,” Grijalva said.
The proposed tax suspension aims to attract more entertainment opportunities to the border community.
“If it’s going to help us grow, why are we holding the city down when we could get more special events, more amenities for our constituents?” Grijalva added.
While the Cochise County Fair itself is not directly impacted by the tax, Valenzuela noted that vendors frequently raise concerns about it.
“We do get the little comments and backlash about how we are the highest. But, I mean, they still come. It’s just kind of a headache to hear it every year,” she said.
Grijalva stated that the tax contributed approximately $17,000 to last year’s budget.
If the suspension is approved, it will take effect on July 1 for the next three years.
The mayor and city council plan to discuss the proposal further in March and April.
