AZFEC: Another Month, Another Onslaught Of Municipal Tax And Fee Increases

AZFEC: Another Month, Another Onslaught Of Municipal Tax And Fee Increases

By the Arizona Free Enterprise Club |

Arizona taxpayers can’t catch a break from their local governments. From water rates and utility bills to property taxes and sales taxes, city councils have spent the last several months approving one increase after another. No matter the justification, the result is always the same: higher costs for the people paying the bills. 

Here are some of the top offenders of the last couple of months:  

Florence 

In the Town of Florence, the town council approved a multi-year water and wastewater rate hike plan that starts with roughly 6–8% increases but compounds over several years into what many residents estimate will amount to around a 64% increase in total utility costs. At a time when families are already struggling with affordability, approving rate hikes of that magnitude is a serious burden on Florence residents. With increases that steep, one would think they’re trying to compete with Gilbert (100%+ increase over 3 years). The increases will start on July 1st, just in time for summer, so get your pocketbooks ready, Florence residents. 

Tempe 

Tempe has their own slew of problems that deserves an article of its own, self-imposed by mismanagement, obviously. The Tempe City Council recently voted on sending a 0.5% sales tax increase to the ballot for voters in November. This will tax all non-grocery food and is said to give 0.3% to public safety, 0.1% to transit such as light rail and buses and 0.1% to Tempe PRE, a city run free preschool. 

As usual, local leaders are putting all blame on the legislature. One Tempe councilmember said, “Let me remind you what we set out to do with this initially: to address a … deficit that was created not by us but by the Arizona Legislature and the federal government.”  

Meanwhile, this is occurring while the council has decided on things like a $2 million “Mill Ave” sign.  Just plain, silver metal. Nothing special or aesthetic and $2 million is going towards this thing? Right, and it’s the legislature’s fault that they are in a budget deficit of about $24 million. It’s almost as if they didn’t spend your tax dollars on stupid things, they wouldn’t need to keep raising taxes…

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AZFEC: Arizona Corporation Commission Could Saddle Ratepayers With 14% Rate Hikes

AZFEC: Arizona Corporation Commission Could Saddle Ratepayers With 14% Rate Hikes

By the Arizona Free Enterprise Club |

Arizona ratepayers already know what it feels like to watch their electric bills climb. In just the last few years, rates have increased by 27% across Arizona, all while environmentalists and Democrats in Washington claimed that trillions of dollars in subsidies for “renewables” would drive down costs. Unsurprisingly, the opposite has happened

Now, Arizona’s largest monopoly utility, APS, is asking the Arizona Corporation Commission for yet another rate hike. Their double-digit 14% request is bad enough on its own. But buried within APS’ ask is something even worse: automatic rate hikes for the next five years (something the Corporation Commission voted in favor of just a year and a half ago). 

It isn’t just APS. At the same time, the Commission is also considering a double-digit (also 14%) rate hike for TEP, along with automatic rate increases. Arizona ratepayers are now seeing the consequences of years of bad energy policy, costly clean energy commitments, and a Commission that has not stopped any of it. 

Before APS’ rate request becomes a real rate hike on your bill, the Commission still has to vote on it. Right now, the case is before an administrative law judge, with hearings expected to continue through June and July. After the hearing concludes, the judge will issue a recommended order, and then the Corporation Commission will make the final decision. 

So, the question now is simple: will the Commission finally say no, or will it force ratepayers to pay for the Green New Scam? 

This Rate Hike Is Not Because of AI or Data Centers 

APS, Kris Mayes, and the Corporation Commission would like ratepayers to believe this rate hike is about AI, data centers, and explosive load growth. It isn’t

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AZFEC: The Only Thing Pay To Play Katie Got Out Of The Budget Was Corporate Handouts For Her Friends

AZFEC: The Only Thing Pay To Play Katie Got Out Of The Budget Was Corporate Handouts For Her Friends

By the Arizona Free Enterprise Club |

After months of vetoes and walking away from the table, Hobbs has finally signed a budget. A budget that looks pretty much the same as the one Legislative Republicans sent up to her desk at the beginning of May. A budget she vetoed, and that she and her colleagues in the Legislature bashed repeatedly. So, what changed? 

There were two budget priorities our organization laid out before the session began. First, anything less than full conformity tax relief from Trump’s Big Beautiful Bill would essentially be a tax hike on Arizonans. Second, an extension of Prop 123 (the increased distribution from the state land trust to K-12 schools to the tune of $330 million a year) must be a nonstarter in budget negotiations. Before getting into the details, both of these objectives were accomplished.  

The biggest item in this budget fight was undoubtedly tax cuts from tax conformity. After President Trump signed the Big Beautiful Bill into law on 4th of July 2025, states faced a decision: do they pass on the tax relief Republicans in D.C. delivered, or do they effectively increase taxes on their residents. Core planks of conformity included no tax on tips, no tax on overtime, an increased standard deduction, a new deduction for seniors, among several provisions for small businesses and corporations of all sizes, most importantly allowing them to deduct expenses in the year they are made, rather than depreciating those expenses over several years. In other words, the bulk of the business provisions weren’t even a tax cut. The question is not whether businesses deduct those expenses, only when they deduct them.  

This question needed to be resolved quickly, as the legislature begins session the second week of January and Tax Day is in April. In the first week of session, Republicans in the legislature sent a package to her desk that delivered full tax relief. All democrats voted no. Hobbs vetoed it.  

Again, in February, to prevent confusion and chaos for taxpayers beginning to file, Republicans in the legislature sent up another bill. It received a veto. At the beginning of May, they sent up a budget that included full tax conformity relief for the third time. Again, it met a veto. 

Based on all of the votetoes, relentless opposition and endless rhetoric about “tax breaks for billionaires,” you would think that the agreed upon budget must have included significant changes to the tax package. But if you are thinking that, you would be very wrong. 

So What did Hobbs and Democrats actually fight for in this budget that necessitated six months of chaos and tax season confusion? 

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AZFEC: Katie Hobbs Is Turning Arizona’s Scenic Landscape Into A Playground For Foreign Solar Developers

AZFEC: Katie Hobbs Is Turning Arizona’s Scenic Landscape Into A Playground For Foreign Solar Developers

By the Arizona Free Enterprise Club |

For generations, Arizona’s wide-open land has supported ranchers, farmers and the communities that helped build our great state. 

Then, the climate activists came along. 

Armed with nothing more than junk science from climate “experts” like Al Gore and Alexandria Ocasio-Cortez, they got busy imposing costly green energy mandates on states across the country—and Arizona’s political and corporate elites eagerly fell in line. Our state’s utilities committed themselves to achieving “Net Zero” emissions by 2050, a goal that will cost ratepayers billions of dollars while doing little to meaningfully impact the environment. 

But higher utility bills are only part of the cost. 

Not wanting to disappoint some of her largest campaign contributors, Arizona Governor Katie Hobbs has been quick to bend the knee to the Green New Scam time and time again. Now, these decisions are not only hitting families in the wallet, but they are transforming our state’s beautiful countryside into an industrial playground for massive, foreign-backed solar and wind developments. 

Under Hobbs, the Arizona State Land Department has increasingly operated like a business partner for the solar industry instead of a steward of Arizona’s public lands. The agency now maintains detailed maps identifying the “best” locations for solar development across the state, effectively helping direct industrial solar companies toward Arizona’s most desirable land. 

But surely, they must be doing the same for other industries? 

Nope…

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AZFEC: The Only Thing Pay To Play Katie Got Out Of The Budget Was Corporate Handouts For Her Friends

AZFEC: The Damage From Katie Hobbs’ Illegal Housing Moratorium Is Only Beginning

By the Arizona Free Enterprise Club |

For decades, Arizona has been a national model for how to responsibly manage and develop water resources. As a result, our state has enjoyed years of economic growth while welcoming millions of new residents to live and work here. 

Then, Governor Katie Hobbs came along. 

In 2023, the Hobbs administration imposed sweeping new water rules that effectively halted new home construction across much of the Valley, under the guise that it was needed to “save water.” 

Now, a court has struck down the policy, ruling that state regulators ignored the law when creating the rules behind it. But the fallout from this disastrous decision is only beginning. And Arizona taxpayers could soon be forced to pay more than $1 billion for the damage. 

Arizona Is Not Running Out of Water 

Despite the alarmist rhetoric coming from Hobbs and the Arizona Department of Water Resources (ADWR), our state is not running out of water.  

In fact, our state uses less water today than it did in 1990—even though our population has doubled to more than 7 million residents. That’s not a typo. Over the past three decades, Arizona has welcomed millions of new residents while reducing total water consumption. 

How is that possible? Through better water management, technological advancements in conservation and reuse, and the gradual conversion of agricultural land to residential development. The result is a system that has allowed Arizona to grow responsibly while protecting its long-term water supply.  

But instead of building on this successful model, Hobbs declared a sweeping housing moratorium—halting new single-family housing construction across much of the Phoenix metropolitan area.  

A Manufactured Crisis With Real Consequences 

In addition to destroying billions in economic activity and further exacerbating the housing shortage crisis, Hobbs’ moratorium created a number of additional problems…

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