Oro Valley officials are proposing a new 2.5% tax on commercial rentals and telecommunications to help offset the rising costs of core town services, such as public safety and road maintenance.
The proposal also would adjust fees for stormwater, parks and recreation.
The public will have the opportunity to discuss the changes at a community forum Thursday, Sept. 11, before the Town Council votes on the measure on Oct. 15.
According to a town staff report, the changes would establish a tax on three categories that are currently not taxed, a move intended to better align Oro Valley with neighboring municipalities. Nearby, Tucson and Marana levy a 2.6% and 2.5% rental tax respectively.
Officials say the new revenue is crucial for maintaining services. Oro Valley Chief Financial Officer David Gephart pointed to skyrocketing operational expenses.
“We have seen over 100% inflation in our pavement preservation costs in just four years, from about $1.5 million per year to more than $3.1 million,” he said.
The new taxes could generate between $900,000 and $1.8 million annually, Gephart said.
“We don’t want to take a step back in terms of what we do with public safety or our roads,” he added. “Those are the two highest priorities for our residents.”
For a business, the impact would be direct: on a $5,000 monthly commercial lease, the rental tax would add an estimated $125 per month.
While the town is framing the proposal as a necessity, local business leaders are asking for more details.
Kristen Sharp, president and CEO of the Greater Oro Valley Chamber of Commerce, said her members have practical questions about the bottom-line impact.
“They want to know the why, how it’s going to affect them, specific numbers,” she said.
Oro Valley residents shop at Casas Adobes Plaza on Monday, Sept. 8, 2025. Businesses here could be impacted by the new taxes proposed by the town.
Sharp acknowledged the town’s goal of aligning with peer cities but noted that Oro Valley is already an expensive place for commerce.
“Adding another cost onto it might be burdensome to small businesses,” she said.
Sharp also stressed the importance of the forum as a way for the town to hear from those who would be most impacted.
“The biggest reason we’re holding the forum is because I feel like the business community will be highly affected by this,” she said. “The town should hear feedback directly from them.”
If the council approves the changes in October, the new rates could go into effect as early as Jan. 1, 2026.
Thursday’s public forum is from 3:30-4:30 p.m. in the Sunset Room of the Oro Valley Community Center, 10555 N. La Cañada Drive. Registration is recommended at orovalleychamber.com.
Arizona Sonoran News is a news service of the University of Arizona School of Journalism.
