Another Month, Another Onslaught of Municipal Tax and Fee Increases Across Arizona

Arizona taxpayers can’t catch a break from their local governments. From water rates and utility bills to property taxes and sales taxes, city councils and town leaders have spent the last several months approving one increase after another. No matter the justification— “infrastructure needs,” “public safety,” or “long-term planning”—the result is always the same: higher costs for families already struggling with affordability.

The Arizona Free Enterprise Club’s July 7 report laid out the latest wave in stark detail. 

Here are the top offenders:

Florence: The Town Council approved a multi-year water and wastewater rate hike plan. Increases begin at roughly 6–8% but compound over several years into what residents estimate will total around a 64% jump in utility costs. These hikes took effect July 1, right as summer heat drives up usage. Families in Florence are now paying significantly more for essential services at a time when every dollar counts. 

Tempe: The City Council voted to send a 0.5% sales tax increase on non-grocery food to the November ballot. Proponents say the revenue would support public safety (0.3%), transit like light rail and buses (0.1%), and Tempe PRE, the city-run preschool program (0.1%). This comes as the city faces a reported $24 million deficit. Critics point to spending priorities such as a $2 million “Mill Ave” sign, questioning why taxpayers must foot the bill for what many see as mismanagement. One councilmember blamed the Legislature and federal government for the shortfall. 

Phoenix: The Council approved a roughly 38% waste rate increase over the next three years, pushing monthly bills from about $37 to more than $51. Additional inflation-based hikes are planned for 2029. The city also proposed increasing property tax collections by nearly $6.3 million. 

Tucson: Leaders packed their new budget with multiple increases: 3.5% annual water rate hikes through 2030, up to 20% on miscellaneous service fees, a $3 monthly trash increase (justified for litter, encampment cleanup, and graffiti removal), 5% on permit and development fees, and an average 11.5% rise in building permit valuation tables. The public utility tax on utilities operating in the city also rose from 4.5% to 5%. Residents are being asked to pay more to address problems city leaders have struggled to solve despite spending millions.  

San Tan Valley: Barely incorporated, the new town is already moving quickly on revenue measures. The council adopted a $91 million budget and advanced a local sales tax for formal vote. Development impact fees are in the works, including $537 in park fees and $5,600 in street fees per new single-family home—costs likely passed on to homebuyers. Notably, the town has no parks yet despite prior county-level park fees. Scottsdale and Flagstaff also joined the list with utility rate hikes (water and sewer) and a proposed 6.89% primary property tax increase in Flagstaff for fire and police operations.

Local leaders across Arizona increasingly treat taxpayers as an endless ATM. Whether in Democratic strongholds like Phoenix, Tucson, and Tempe or more conservative areas, the pattern repeats: expand spending and services, then raise rates and fees when government expands and budgets tighten. Justifications often center on “public safety” or “essential infrastructure,” yet residents see little results and little relief. 

Without stronger checks on local government power—through transparency, spending restraint, and taxpayer pushback—these increases will continue. Arizona deserves better than perpetual tax and fee hikes disguised as responsible governance.