Exploring the Impact of Amusement Tax Suspension: How Douglas Aims to Revitalize Local Entertainment

Douglas, Arizona, is looking into a plan to pause its 3.8% amusement tax for three years. This tax impacts local gyms and event venues, and if the city council agrees to this proposal, it could bring some welcome financial relief to residents.

“This is a positive step for Douglas,” said Nikki Valenzuela, General Manager of the Cochise County Fair. Mayor Jose Grijalva echoed her sentiments, highlighting how businesses faced tough times during the COVID-19 pandemic. “These businesses suffered and received no help during that period. This tax cut is a small way to support them and benefit our community,” he stated.

The goal of the tax suspension is to encourage more entertainment options in the area. Grijalva asked, “Why hold the city back when we can have more events and better amenities for our residents?”

While the fair itself isn’t directly affected by this tax, Valenzuela noted that many vendors often voice concerns about its impact. She mentioned that although people comment on the high tax rates, vendors still participate in events, making it a recurring issue every year.

Last year, the amusement tax brought in about $17,000 for the city’s budget. If the suspension is approved, it would begin on July 1 and last for three years. The city council will discuss the proposal in detail during meetings in March and April.

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