Proposed Fee Changes

Proposed Fee Changes

Published on September 25, 2025

Notice Update September 25, 2025: City of Tucson Considers Series of Tax and Fee Increases to Boost Revenue

The following report(PDF, 135KB) has been added in accordance with A.R.S. §9-499.15.

At the August 6, 2025, Study Session, the City of Tucson Mayor and Council reviewed the City Manager's proposal to increase several taxes/fees that could generate more than $7.6 million in additional annual revenue. The adjustments, which would require a vote by the Mayor and Council, target areas ranging from advertising to public utilities and short-term rentals.

Under the proposal, the advertising tax would rise from zero to 2.6%, generating an estimated $470,000. Pawn shop and secondhand transaction fees would increase from $1.00 to $3.00 per transaction, bringing in about $400,000.

A significant portion of the revenue-about $5.25 million-would come from raising the public utility tax from 4.5% to 5%.

For the tourism sector, the Transient Occupancy Tax (TOT) and Room Surtax would increase from 6% plus $4 per unit per day to 9%, adding roughly $1.05 million. An additional Transient Occupancy Tax of 1% will be added to short-term rentals raising the TOT to 10%, and eliminating the $4 per unit per day surtax, contributing to another $450,000.

City officials say the increases are intended to strengthen funding for municipal services and address budgetary pressures. All proposed changes would need formal approval from the Mayor and Council before taking effect.