The Gilbert Chamber of Commerce has formally expressed its opposition to the Town of Gilbert’s proposed increases in specific Transaction Privilege Tax (TPT) classifications and an increase in the annual business license fee. The communication, prepared by the Public Policy Committee and approved by the Chamber’s Board of Directors, was sent to Mayor Anderson, members of the Town Council, and town staff.
The proposal includes raising taxes for laundromats, car washes, restaurants and bars, communications services (landline and cellular), and increasing the business license fee from $2 to $50 per business. These measures are designed to address a projected $20 million revenue deficit starting in fiscal year 2028. However, according to the Chamber’s letter, these changes would not fully resolve the anticipated shortfall.
“Our opposition is not rooted in resistance to fiscal responsibility. We recognize that businesses must be part of the solution as we look to correct this shortfall. However, our opposition reflects concern about the lack of a comprehensive, long-term financial strategy and the permanent nature of the proposed changes. Once enacted, these increases will not be easily reversed, yet they represent only partial, short-term solutions to a multi-year structural revenue challenge,” stated the Chamber.
Among its concerns, the Chamber noted that implementing permanent tax increases without a long-term fiscal plan could cause economic harm while still leaving unresolved budget gaps for future councils. The organization also pointed out that restaurants and bars have faced multiple challenges over recent years—including COVID-19 restrictions, increased sales taxes and regulatory costs—making them particularly vulnerable to further taxation.
“Targeting this sector risks: Further erosion of already-thin profit margins; Business closures or relocation; Reduced employment opportunities; Loss of vibrancy in Gilbert’s commercial districts; Change in consumer spending habits,” read part of their message.
The Chamber urged town officials to develop a detailed financial plan that addresses all aspects of the deficit with clear timelines and transparency regarding when each component will impact budgets. It also called for greater engagement with local businesses before any permanent policy changes are made.
“We urge the Town Council to pause notice of intent of these proposed increases until a comprehensive solution is developed and vetted,” wrote the Chamber. “We stand ready to partner with the Town to help craft sustainable, equitable, and growth-minded solutions that protect Gilbert’s economic vitality while ensuring the Town’s long-term fiscal health.”
The Gilbert Chamber of Commerce operates as a nonprofit organization supporting business growth through networking events and advocacy for policies aimed at strengthening Gilbert’s economy (official website). Its mission includes fostering economic strength through leadership development programs since 1992 (official website), providing resources for professionals (official website), supporting community initiatives via education (official website), influencing policy decisions (official website), and maintaining operations as both a 501(c)(6) chamber entity and a 501(c)(3) foundation focused on community projects (official website). Sarah Watts serves as president and CEO (official website).
Founded in 1978 by local business owners (official website), today’s Chamber continues its role as an advocate for pro-business measures within Gilbert.
