1% Auto Sales Tax Rebate Passes City Council
Chamber Facilitates City/Auto Dealers Agreement to Boost Vehicle Sales
Starting in May 2009, consumers are able to receive a tax credit of up to $300 for fuel efficient new and used vehicles purchased from Flagstaff auto dealers. The Flagstaff City Council recently approved the 1% city sales tax rebate on local auto purchases by a 6-1 vote. The rebate, which will be in effect for one year, applies to all vehicles meeting a federal standard of 27 highway miles per gallon.
“This was a big win for the local economy,” said Flagstaff Chamber of Commerce President Julie Pastrick. “In addition to being a boost for our local car dealers, this rebate will benefit our economy when consumers with rebate checks spend at other local businesses.”
The Chamber worked closely with City Manager Kevin Burke and local auto dealers to determine what terms would create the best immediate sales impact. The Chamber then convened meetings between our auto dealers and city staff to further craft the rebate.
During the “boom” years of the early- and mid-2000s, automakers were selling more than 16 million autos a year in the United States. Estimates for 2009 are less than 10 million. Similarly, auto sales are down about 35 percent from last year in Flagstaff. It is hoped this tax break will help this vitally important sector of our local economy.
The Chamber thanks Mayor Sara Presler and City Councilors Joe Haughey, Scott Overton, Coral Evans, Karla Brewster and Al White, who voted to approve this economic stimulus proposal.
Consumers may access the city rebate application here: WORD 2003 or as a PDF.
Auto Rebate Program Requirements: PDF
Auto Rebate Program FAQs: PDF
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