NAU tax diversion to cost Flagstaff $1.9 million. See more Arizona Daily Sun education stories here

| April 11, 2017

By Corina Vanek • Arizona Daily Sun

Two of the city’s largest public entities, the city of Flagstaff and Northern Arizona University, are at odds over a proposal from the governor that would exempt public universities from paying sales tax.

The cost to the city of Flagstaff would be nearly $1.9 million over the 30-year period.

Part of Gov. Doug Ducey’s proposed budget would allow the state’s public universities, including NAU, to recapture the sales tax they pay. Under current law, the money generated is shared with cities, towns and counties.

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