A budget proposed by Republicans in the Arizona state legislature could have a dramatic effect on downtown Tucson by eliminating a special tax district that has helped redevelop the area.
In 1999, voters approved creating the Rio Nuevo District around downtown Tucson. Under its special tax model, state sales tax revenues collected inside its borders that would usually leave Tucson are instead kept there and reinvested.
The district would be eliminated under a budget proposal unveiled this week by Republicans who control the state legislature. They estimate it would bring the state $19 million a year.
Over the years, the Rio Nuevo District has helped fund new Caterpillar offices, the Mercado San Agustin and several restored buildings along Broadway Boulevard, according to the district’s website.
The Republicans’ proposal makes spending cuts across the board to pay for tax cuts in line with those signed into law by President Donald Trump last year in the so-called One Big Beautiful Bill Act.
Governor Katie Hobbs has also proposed a budget that doesn’t cut Tucson’s Rio Nuevo district.
Last year, Hobbs signed a budget in late June after weeks of negotiations.
