by Matthew Holloway | Mar 12, 2025 | News
By Matthew Holloway |
The City of Phoenix has drawn the attention of the Goldwater Institute, earning a stern response from the conservative think tank to “Stop violating taxpayers’ rights.” The rebuke comes over a proposed tax increase on businesses that provide services that are precluded by the Arizona Constitution. A final city council vote on this proposal is set for March 18, 2025.
If the hike on Transaction Privilege (“TPT”) and Use Tax rates is approved, the rates go into effect July 1, 2025.
According to Goldwater, “The city of Phoenix has proposed a tax increase on businesses that provide services, claiming it needs the money because of a revenue shortfall. But the burden of the new tax increase will ultimately fall hardest on Phoenix businesses and consumers, raising the prices of services like construction contracting and lodging.” As Goldwater observes, the Arizona Constitution (Art. IX § 25) outright forbids “any county, city, town, municipal corporation, or other political subdivision of the state, or any district created by law” from creating any new or increasing any existing transaction-based taxes on the “privilege to engage in, or the gross receipts of sales or gross income derived from, any service performed in this state.”
Notably though, the prohibition on Section 25 “does not repeal or nullify any tax, fee, stamp requirement, or other assessment in effect on December 31, 2017,” and therefore allowed the pre-2017 taxes already in place. However, as Goldwater Attorney Stacy Skankey explains, the new rates would constitute a new tax under the law.
Skankey wrote succinctly, “New or increased taxation on services violates the Arizona Constitution.”
“The Arizona Constitution has a broad understanding of the term ‘service,’ and it includes a range of covered enterprises on anything that does not produce ‘goods.'”
“Service generally includes activities involving human effort like labor, skill, or advice. The term also covers businesses in the hospitality industry such as hotels, restaurants, and bars. Many of the business classifications subject to the proposed TPT tax increase are services as that term is used in the Constitution.
“The proposal by the Phoenix City Council is a tax increase on services, and therefore, is unconstitutional. Consequently, we urge the City to disapprove of the proposed TPT tax increase and any future proposed tax that may violate the Arizona Constitution.”
As reported by AZ Free News in January, the Goldwater Institute has already launched a lawsuit against the Town of Gilbert after municipal leaders unleashed a similar service tax on Town businesses including homebuilding and short-term rental properties.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Mar 12, 2025 | News
By Matthew Holloway |
Arizona Congressmen Andy Biggs (R-AZ5) and Eli Crane (R-AZ2) shared a somewhat cramped carpool video with fellow Freedom Caucus members Reps. Josh Brecheen (R-OK2) and Clay Higgins (R-LA3) last week. The group was commuting from a meeting with President Donald Trump where they discussed the implementation of the president’s policy set out in his address to a Joint Session of Congress the previous night.
The congressmen made light of the close quarters but emphasized their commitment to forwarding the president’s agenda. Higgins quippedsarcastically, “This is the luxury that your congressmen ride in,” as the congressmen laughed. “As you can see we’re in a massive limousine, you know, even though we’re being fed grilled shrimp from the front. Also there’s three of us squeezed into a two-person seat!”
Biggs told followers, “We’re coming back from the White House where we had the privilege of meeting with President Trump. It’s always a great meeting. And we just wanted to let you know that we’re on the cheap, but we are working hard for you.”
Rep. Brecheen commented on Trump’s address saying, “Great speech last night. My gosh.”
Biggs added “We’re gonna do this. We’re going to get President Trump’s mandate through, and that’s not just President Trump’s mandate. That’s the people’s mandate.”
As reported by Fox News, members of the Freedom Caucus, led by Chairman Andy Harris (R-MD), met with Trump and Harris told the outlet, “It’s a meeting with the House Freedom Caucus leadership, and then a few of the people who philosophically share our feelings about the fiscal situation. And we’re going to hear what the president has to say.”
“I’m hopeful we can get this off the ground,” Harris said. “But, again, it’s going to involve all hands on deck in the Republican conference in the House.”
Rep. Higgins shared on Saturday, “MAGA Republicans have things well in hand. The CR through September is a final step of clearing the deck for President Trump and our America First agenda. Democrat elitists who have been devouring our country are freaking out, but they’re powerless to stop us.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Mar 11, 2025 | News
By Matthew Holloway |
Arizona Congressman Abraham Hamadeh introduced the Veterans Readiness & Employment Transparency Act last week in bipartisan collaboration with Rep. Juan Ciscomani along with Reps. Jonathan Jackson (D-IL), Rep. Greg Murphy (R-NC), Rep. Hank Johnson (D-GA), Rep. Sam Graves (R-MO), and Rep. Rob Wittman (R-VA).
According to Hamadeh, the bill is designed to increase the access and the responsiveness of the Veterans Readiness and Employment (VR&E) program.
At present the VR&E program, which assists veterans with job training, education, employment accommodation, resume development, and job-seeking skills coaching, lacks a hotline for veterans and there is no accessible contact information provided by the regional offices where average wait times by regional office ranges from 2 weeks to 158 days.
At the Phoenix regional office, the average wait time for a veteran in need of assistance currently stands at 68 days to see a Vocational Rehabilitation Counselor for an initial evaluation. Congressman Hamadeh said in a statement, “Many say VR&E program is the Department of Veterans Affairs’ best-kept secret, but many veterans and campus administrators can’t get the Department’s help with the onerous application process—or even know where to begin. Veterans are often ignored by their VR&E counselors – with no recourse, adding to often extreme wait times.”
In a post to X the Congressman wrote, “Our veterans did not delay when heeding the call of our nation, & our nation cannot delay when our veterans call for assistance Congressman Hamadeh’s Veterans Readiness & Employment Transparency Act is common-sense legislation that has bipartisan support.”
The new bill will require the establishment of a hotline, that all regional offices “must display a name, email, and number online for vets with VR&E questions,” and that regional offices hold Q&A sessions on the VR&E program at every school in their area of responsibility. The new bill will also require an annual report on vocational training extension waivers and requires that they be approved or denied within 30 days.
Rep. Juan Ciscomani, who joined Hamadeh on the bill, wrote “When our veterans return home, they deserve to be able to easily access the support and benefits their service earned.”
“Unfortunately, due to unnecessary bureaucracy, many veterans have difficulty accessing VR&E programs that help with job training, education, and employment accommodations, especially for those who were injured in the line of duty. I am proud to join my fellow Arizona colleague Rep. Hamadeh in a bipartisan effort to make VR&E programs more accessible to veterans in my district, and across the country.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Mar 10, 2025 | News
By Matthew Holloway |
Two New Mexico teenagers were arrested near Palominas, Arizona, on charges that they transported three illegal immigrants on March 1st. The illegal immigrants were identified as Mexican nationals by U.S. Customs and Border Protection (CBP).
CBP’s Tucson Sector announced that as agents patrolled a well-known smuggling route, they observed a person wearing camouflage and began to investigate. While investigating, the agents spotted a black Dodge Ram pickup truck and initiated a traffic stop to perform an immigration inspection on the vehicle.
According to the agents, they discovered the teenagers, a male and female both aged 17, in the front of the vehicle with three older men attempting to conceal their presence in the back seat of the truck. The three men were confirmed to be Mexican nationals who had entered the U.S. illegally, while both the driver and front-passenger were confirmed to be U.S. citizens.
The driver and his female passenger were placed under arrest and transported to the Brian A. Terry Border Patrol Station, and the agents seized the pickup truck. The driver is facing prosecution for human trafficking, a felony under 8 U.S.C 1324 and could face anywhere between one and ten years in prison. The female passenger is not facing charges at this time.
According to the press release from CBP, the three illegal immigrants have all been previously removed from the U.S. and are now facing the reinstatement of their prior removal orders and will serve as material witnesses in the prosecution of the driver.
In a post to X, Chief Patrol Agent (CPA) of the U.S. Border Patrol’s Tucson Sector John R. Modlin wrote, “A U.S. Citizen juvenile was arrested near Palominas, AZ for smuggling 3 illegal aliens. The 17-year-old smuggler faces felony charges of 8 USC 1324 Transporting an Alien Who is Unlawfully Present in the US.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Mar 10, 2025 | News
By Mathew Holloway |
The verdict is in on Governor Katie Hobbs’ “Operation Desert Guardian” from Arizona’s Border Sheriffs, and it isn’t good for the Democrat governor.
As the governor faces dwindling popularity poll numbers, fellow Democrat Pima County Sheriff Chris Nanos bailed on a lengthy online conference about Hobbs’ border task force, saying “I don’t need another task force.” Noting his membership in four other collaborative efforts combating drugs and human trafficking, he noted, “I’m sorry, I just don’t. And so, I’m out.”
Nanos said his department will not be participating in a devastating blow to the governor’s initiative, given that Pima County covers approximately 31.6% or nearly a third of Arizona’s border with Mexico. The move also has serious political implications. Nanos was one of Hobbs’ biggest supporters during her campaign, even going so far as to cut a campaign ad for her.
Yuma County Sheriff Leon Wilmot, a Republican, offered similar pushback saying, “Let’s not waste state tax payer money on building something that doesn’t need to be rebuilt.”
Both sheriffs were reportedly taken aback by Hobbs’ surprise Executive Order and offered serious criticism of her and the goals of the operation. They told reporters that the work the task force is set to tackle is already being done and would be duplicative, not an added benefit.
“The state is not going to come in to rescue us and be the savior of what we’ve been dealing with,” Wilmot said, noting that the border Sheriffs’ departments offer a wealth of ground-level experience. “They need to come in and be a partner.”
According to a follow up report from AZCentral, Yuma County will participate after a meeting with Hobbs earlier this week.
Speaking with KGUN, Cochise County Sheriff Mark Dannels had his own doubts, “My budgets are already fulfilled. They’re maximized. And so if there are expectations that my office will be doing something without the budget, chances are we won’t do it… I can’t do it.”
Dannels asked, “What’s the cost to my agency? What’s it going to mean for resources? What are they going to take care of that I don’t already have?” He expressed that he wasn’t made aware of the task force, and though he has hopes it could complement his department’s actions, he said, “I don’t know. I have not seen an operational plan.”
Republican Governor’s Association Rapid Response Director Kollin Crompton suggested Hobbs’ political motives in a statement to AZ Free News saying, “Katie Hobbs’ desperate attempt to cover up her open border policies won’t work, and border county sheriffs of both parties know she’s a disaster. Arizonans want a secure border and safe communities, that’s not possible as long as Katie Hobbs is governor.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
