Every restaurant, bar and hotel in the city charges an extra two percent tax. This is in addition to the regular sales tax that you pay on regular purchases.
This additional two percent tax is commonly known as the “BBB tax” (Bed, Board and Booze), and generates $6 million annually. The tax started in 1988. It was enacted by the voters as is required for all sales taxes. It was originally designated to be used for beautification, economic development and recreation.
Back in 1988, I recall the motivations in favor of the tax to be the clean up and beautification of Route 66 and to bring some good employers to town. It was set to expire in 10 years but was renewed by the voters in 1996 and 2010. It will now expire (if not renewed) in 2028.
The use of the funds has morphed into the categories and percentages in the adjacent box.
The Tourism funds operate the City’s Convention and Visitors Bureau.
The Recreation funds support several recreation programs but are now being used mostly for maintenance of parks.
Beautification funds do landscaping and public art.
Arts and Science money is divided among about 30 organizations and used for everything from singing groups to science festivals.
Economic Development is spent in various places intended to attract and keep businesses.
Tourism | 30% | $1.8 million |
Beautification | 20% | $1.2 |
Economic Development | 9.5% | $.5 |
Arts & Sciences | 7.5% | $.4 |
Recreation | 33% | $2.0 |
I am happy to supply all the details. Give me a call: 213-2015. FBN
Written by Flagstaff Mayor Jerry Nabours
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