DOUGLAS, Ariz. (KGUN) — Last week, Douglas City Council voted to suspend its current amusement tax. Mayor Jose Grijalva had been advocating for the suspension since before he was elected.
“I'm supportive of removing the tax, because that way I can reinvest that money into my business; and (for) my members, it would be actually cheaper,” said Leo Gutierrez, owner of Power Zone Gym.
The 3.8% tax affects vendors at the Cochise County fair, gyms, event venues and other businesses that bring entertainment to the border community. The suspension will go into effect July 1.
“It did surprise me, because I didn't think it was really going to happen,” Gutierrez said. “Mayor Grijava had told me about it before he took office, and in my mind, I didn't think it was going to happen. But I’m actually grateful it did, because now I can reinvest that money into back into my business.”
Grijalva and the City have beentalking about the suspension of the tax since the beginning of the year. Grijalva says the tax contributed approximately $17,000 to last year’s budget.
“Putting it on hold will really help us, because a lot of businesses are gradually building back up,” said Arturo Torres, the owner of Balar, an event space in Douglas.
Most of the businesses affected by the tax were also forced to close their doors during the pandemic.
“This halt on the tax for three years, it kind of compensates for the time that we were shut down,” Torres said.
Both Torres and Gutierrez agree that the positives seem to outweigh the negatives. Gutierrez says his members are going to see a benefit from the suspension too.
“That consumer is going to be saving some money, you know, which is important to me; because that makes it more affordable for my members to keep coming back to my business,” he said.
Gutierrez says he had to take out a loan to renovate the second floor of the gym.
“I will be saving now, eliminating that amusement tax. I can help pay for that loan that I did take up for my business,” he said.
The suspension will last three years.
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Alexis Ramanjulu is a reporter in Cochise County for KGUN 9. She began her journalism career reporting for the Herald/Review in Sierra Vista, which she also calls home. Share your story ideas with Alexis by emailing alexis.ramanjulu@kgun9.com or by connecting on Facebook.
