By Ethan Faverino |
Arizona House Speaker Steve Montenegro (R-LD29) announced the appointment of Goodyear Councilwoman Vicki Gillis to the Arizona Municipal Tax Code Commission following a state audit that raised concerns over transparency, accountability, and the delegation of statutory responsibilities.
The announcement follows an August 2026 sunset review by the Arizona Auditor General, which identified concerns regarding the Commission’s procedures for reviewing proposed amendments to the Model City Tax Code.
According to the Auditor General’s report, the Commission delegated responsibility for reviewing proposed tax code amendments to the City Tax Administrators Council (CTAC), an entity not formally recognized under state statute and not required to comply with Arizona’s open meeting laws.
The report found that the arrangement limited public transparency and recommended clarifying the Commission’s statutory authority. It also recommended that lawmakers consider requiring informational public hearings for all proposed amendments.
The report also found that the Commission went more than six years without holding a public hearing to consider proposed Model City Tax Code amendments. Under state law, the Commission is responsible for reviewing proposed amendments, holding public hearings, and approving or denying proposed changes.
According to the Auditor General, the Commission held its first such hearing since May 2019 on December 12, 2025, when it approved five amendments involving rental properties, telecommunications services, software application services for schools, utility equipment and property, and rental occupancy tax classifications.
“The Legislature established this Commission to promote uniformity and consistency in municipal taxation while providing a transparent process for reviewing proposed changes,” said Speaker Montenegro. “Arizonans deserve to know when changes to the tax code are being considered, who is proposing them, and how those changes could affect their families and businesses.”
The Arizona Municipal Tax Code Commission is responsible for reviewing proposed amendments to the Model City Tax Code, conducting public hearings, and approving or rejecting proposed changes.
The Model City Tax Code establishes a framework for municipal transaction privilege taxes, commonly referred to as sales taxes, across Arizona cities and towns.
Amendments to the code can affect how municipalities administer and collect taxes, as well as the obligations of businesses operating within their jurisdictions.
Montenegro emphasized that the Commission must fulfill its responsibilities under state law rather than delegate its authority to organizations operating outside established public transparency requirements.
“Statutory responsibilities cannot simply be delegated to an entity that operates outside the transparency requirements the public expects of government,” added Montenegro.
The Speaker also expressed concerns about the potential financial impact of changes to municipal tax policies, particularly as Arizona families and businesses continue to face cost-of-living pressures.
“Arizona families are working hard to manage the cost of living, and government should not create additional uncertainty or costs through administrative expansions of the sales tax,” said Montenegro.
Montenegro said Gillis’s appointment is intended to reinforce accountability and ensure that proposed tax code changes receive appropriate public scrutiny.
He also called for a consistent and predictable review process that allows municipalities, businesses, and taxpayers to understand proposed changes and their potential financial implications.
“The Commission must follow state law, restore public confidence in its process, and ensure that any proposed changes receive the scrutiny and transparency required by statute,” Montenegro said. “I expect this appointment to help reinforce those principles and keep the interests of Arizona taxpayers at the forefront.”
The appointment follows the Auditor General’s findings and recommendations calling for greater transparency and clarification of the Commission’s statutory responsibilities.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
