by Matthew Holloway | Jun 14, 2024 | Economy, News
By Matthew Holloway |
The owners of the businesses that power the economy of southern Arizona are about to see some long overdue relief from a 2018 excise tax which was struck down by the State Supreme Court in 2022. Affected businesses will be able to file for a waiver or refund of the tax by April 9, 2026 to recover at least $87 million that was unlawfully collected by the county with another $4 million in interest to be paid out proportionally. Unfortunately, consumers who paid the tax as part of a transaction, will be unable to seek a refund.
The Pinal County transportation excise tax was invalidated by the Arizona Supreme Court in Vangilder v. Arizona Department of Revenue, in which the court found that the Pinal County Board of Supervisors violated state law by adopting a “two-tiered retail transaction privilege tax (TPT) on tangible personal property as part of a transportation excise tax.” While the court held that the basis of the tax was lawful, it invalidated the two-tiered system where the first $10,000 of any one item was taxed at one rate and any in excess was taxed at zero percent.
Arizona Supreme Court Justice Kathryn H. King, a former Deputy General Counsel in the Office of Governor Doug Ducey and appointed by Ducey wrote for the court:
“For the foregoing reasons, we conclude that Pinal County complied with state law in adopting the transportation excise tax. We further conclude, however, that state law does not permit Pinal County to adopt a two-tiered retail TPT structure as part of a transportation excise tax, whereby the first $10,000 of any single item is taxed at one rate and any amount in excess is taxed at a rate of zero percent. For that reason, Pinal County’s two-tiered retail TPT structure in Proposition 417 is unlawful and invalid.
Accordingly, we affirm the court of appeals’ opinion in part and vacate in part. We vacate paragraphs 2 and 23–30 of the court of appeals’ opinion. We affirm the superior court on other grounds. We deny Vangilder’s request for attorney fees.”
The filing opportunity was announced in a letter from the Arizona Auditor General on May 17 according to The Center Square. The letter detailed that approximately $87 million was collected through the excise tax which has earned $4 million in interest adding that the ‘applicable interests” would be paid out to those requesting a refund as well. However, the actual consumers who paid the 0.5% sales tax up to the first $10,000 have no such recourse because of the “transaction privilege tax” status of Arizona the outlet noted cited the Pinal County website.
The Auditor General wrote, “Between April 1, 2018, and February 28, 2024, the Pinal Regional Transportation Authority did not expend any of the 2018 Excise Tax revenues or accrued interest.”
The county website explained, “Specifically, taxpayers who will be able to request a refund or waiver of monies paid toward this invalidated tax are generally limited to those businesses that filed and paid tax to the Department for the April 2018 through March 2022 tax periods as part of their overall transaction privilege tax liability, for business activity that they conducted either in Pinal County or with Pinal County customers.”
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 Daniel Stefanski | Jun 5, 2024 | Economy, News
By Daniel Stefanski |
Arizona legislative Republicans are seeking to bring economic relief to many of their constituents who are struggling to make ends meet.
Over the weekend, Arizona Senate President Warren Petersen issued a statement about the harsh economic circumstances faced by thousands of Arizonans – and countless more around the nation. Petersen said, “Crippling prices on basic necessities continue to wreak havoc on hardworking Arizonans. Sadly, this will remain the case while the Biden Administration continues to enact costly policies, and while Washington D.C. continues its out of control spending spree.”
The Republican Senate President pointed to a study from a local thinktank, which proved his point about the current state of the economy, as compared to years earlier, writing, “According to a recent report from the Common Sense Institute, the average family would have saved approximately $8,400 annually over the past three years, if inflation remained at the Federal Reserve’s 2% goal. In comparison to 2020, rent for a two-bedroom apartment is now 30% higher, a tank of gas is $24 dollars more, and a month’s worth of groceries for a family of four is $302 higher!”
The report also showed that “real wages in Arizona have fallen 1% since peaking in April 2020.”
As he ended his statement about the economic woes across the state and country, Petersen said, “Senate Republicans provided families some relief with a tax rebate last year, and by also eliminating the tax renters pay on their monthly bill. We are committed to doing more to ease these burdens, while Democrats, unfortunately, ignore the problem.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | May 31, 2024 | Economy, News
By Daniel Stefanski |
Two Arizona Republican bills to tackle the state’s deepening housing crisis were recently signed into law.
Last week, Governor Katie Hobbs signed HB 2720 and HB 2721. HB 2720 “establishes requirements relating to accessory dwelling units” – according to the overview from the Arizona House of Representatives. HB 2721 “adopts requirements for middle housing development” – also according to the overview from the state House.
In a statement that followed the governor’s signature of his bills, State Representative Michael Carbone, a Republican, wrote, “It’s the goal of Republicans in the Legislature to make life more affordable for everyday Arizonans by addressing the urgent need for more diverse housing options. I’m pleased to have the Governor sign my two bills into law, which will help mitigate the effects of rising housing costs and ensure that our teachers, nurses, firefighters, police officers, and families can live in the communities they serve and love.”
Carbone added, “Importantly, the legislation reinforces a homeowner’s right to use their property as they see fit which, for some, may include adding accommodations for multigenerational housing or to generate additional income. The enactment of this legislation is a significant step toward solving the state’s housing crisis, and I am proud of the bipartisan effort that made it possible.”
Hobbs also released a statement to mark her signature on these two proposals, saying, “I’m glad the legislature heard my calls to come to the table to pass common sense, bipartisan legislation that will expand housing options and help mitigate the effects of rising costs to make life more affordable for everyday Arizonans. And today, I’m proud to sign bills into law that will expand access to ADUs and missing middle housing.”
The governor continued, “I was born and raised in an Arizona where a middle-class family could buy their own home. In the past year alone we have made dramatic strides towards making that the reality again for the next generation. …Moving forward, I hope we can work together to address short term rentals that displace long-term community residents, and crack down on speculation by out-of-state real estate investors that drives up the cost of housing for Arizonans.”
Both bills will go into effect 90 days after the conclusion of the 2024 Arizona Legislative Session.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Elizabeth Troutman | May 22, 2024 | Economy, News
By Elizabeth Troutman |
Fast food prices have skyrocketed during the Biden administration, according to a graph shared on X by the account End Wokeness.
Prices as measured by the seasonally adjusted Consumer Price Index are now up by almost 20% in the years since President Joe Biden took office.
The prices of five of McDonald’s most popular items — french fries, a cheeseburger, 10 McNuggets, the Big Mac, and the McChicken — on average have increased by more than 140% from the end of 2019, when Donald Trump was president, to this year.
An order of medium french fries cost $1.79 when Trump was president but now costs $4.19. The McChicken increased from $1.29 to $3.89. The cheeseburger went from costing $1.00 to $3.15, a 215% increase.
Taco Bell’s popular items have on average increased by 57.4%, with the beefy five layer burrito increasing in price from $1.69 in 2019 to $3.69 in mid-2024, a 118% increase.
At Chick-fil-A, the average price across the Deluxe Chicken Sandwich, eight nuggets, four chicken strips, medium waffle fries, and a large milkshake increased by 80.1%.
The eight-piece chicken nugget, which once cost customers only $3.05, now costs just short of six dollars. The medium waffle fries increased from $1.65 to $2.99.
Biden has acknowledged the increases consumers have faced in prices during his presidency.
“Inflation has fallen more than 60% from its peak, and core inflation fell to its lowest level in three years,” he said, acknowledging that “prices are still too high” and reiterating that fighting inflation is his “top economic priority.”
The typical U.S. household needed to pay $227 more a month in March to purchase the same goods and services it did one year ago because of inflation. Americans are paying on average $784 more each month compared with the same time two years ago and $1,069 more compared with three years ago.
Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.
by Elizabeth Troutman | May 16, 2024 | Economy, News
By Elizabeth Troutman |
Arizona Republican Rep. David Schweikert urged Americans to take “our fiscal responsibility” seriously in light of the Social Security Administration’s 2024 Trustees Report.
“I implore my brothers and sisters to take our fiscal responsibility seriously before it’s too late,” Schweikert said.
Schweikert, who serves as Joint Economic Committee vice chairman, issued a statement on the report, which projected that the Old-Age and Survivors Insurance (OASI) Trust Fund will become insolvent by 2033.
“The Social Security Trustees Report confirms that it’s no longer just future generations who should be concerned about receiving their full earned benefits but rather current retirees too,” Schweikert said
The congressman criticized Congress for failing to protect the entitlement programs millions of Americans depend on.
“As our nation’s fiscal health continues to deteriorate, Congress refuses to live up to its moral obligation to protect and modernize Social Security and Medicare,” he said. “It’s past time for the political class to put aside their talking points and start working on bipartisan solutions to save these programs for our seniors.”
According to the report, the Old-Age and Survivors Insurance Trust Fund is projected to become exhausted by 2033. Once the OASI Trust Fund goes insolvent, all beneficiaries will face an across-the-board 21% cut to retirement benefits.
The Disability Insurance (DI) Trust Fund will be able to keep paying full benefits through at least 2098. But the combined OASI and DI Trust Funds will become depleted by 2035.
Once the combined OASDI trust funds go insolvent, all beneficiaries will face an across-the-board 17% cut to retirement benefits.
The Hospital Insurance (HI) Trust Fund will become insolvent by 2036. At that point, the HI Trust Fund will only be able to cover 89% of total benefits.
The combined Social Security programs will run a cash-flow deficit of $169 billion this year and $2.7 trillion over the next decade.
Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.
by Daniel Stefanski | May 11, 2024 | Economy, News
By Daniel Stefanski |
One Arizona Republican lawmaker is speaking out against Democrats’ economic policies.
Senate President Pro Tempore T.J. Shope recently addressed the economic pains being felt by his constituents – as well as many Arizonans around the state. He singled out President Joe Biden and attributed the support of Democrat state legislators for aiding in the economic ailments of everyday Americans.
Shope wrote, “Reckless policies implemented by Joe Biden and supported by Democrat lawmakers have caused the inflation nightmare currently costing you more of your hard earned dollars. Americans are now paying nearly $1,100 more each month compared with just three years ago. If you were hoping to buy a house soon, don’t expect relief in the near future, as 30- year mortgage rates are sitting above 7%, the highest level in 20 years, and the feds indicated this week they may not cut rates in 2024 while inflation remains high.”
The state senator added, “Gas prices are surpassing $4 per gallon in Arizona, when they were just $2.50 at this time four years ago. Our citizens are spending 11% of their disposable income on food, which is the highest level in more than three decades. More and more working class citizens are relying on credit cards to cope with rising costs, as one in three consumers are currently maxing them out. Senate Republicans remain focused on easing these financial burdens, despite the out of touch priorities Biden, Hobbs, and Democrat lawmakers are pushing.”
A recent Gallup Economy and Personal Finance Poll showed that only 38% of respondents had “a great deal” or “a fair amount” of President Biden “to do or recommend the right thing for the economy.” This approval rating (or lack thereof) for Biden has plummeted since the start of his presidency in 2021, when he began his term at 57% for this specific question. Just 34% of independents have confidence in the 46th President’s ability to turn the economy around, according to the poll.
During a recent campaign appearance, former President Donald J. Trump again reiterated that he would reignite the American economy if voters entrusted him with the keys to 1600 Pennsylvania Avenue. He said, “Upon taking office, I will impose an immediate moratorium on all new spending, grants, and giveaways under Joe Biden’s mammoth socialist bills like the so-called Inflation Reduction Act. We are going to stop the Biden spending spree. We are going to halt his inflation death spiral. We are going to terminate his Green New Scam. We are going to end his war on American energy. And we are going to drill, baby, drill.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
