by Ethan Faverino | Jan 18, 2026 | Economy, News
By Ethan Faverino |
State Representative Nick Kupper (R-LD25) introduced House Bill 2325, also known as the Own Something and Be Happy Act. This legislative measure is designed to reduce the growing influence of large institutional investors in Arizona’s single-family housing market and restore ownership opportunities for working families.
The bill, which amends Title 44 of the Arizona Revised Statutes by adding Chapter 42, targets corporate dominance that has driven up home prices and made it harder for Arizona residents—particularly first-time buyers—to purchase homes in their communities.
Key provisions include:
- Capping institutional ownership at no more than 50 single-family homes statewide.
- Prohibiting bulk purchases, defined as acquiring two or more single-family homes in a single transaction or within a rolling 12-month period by the same entity.
- Imposing a 60-day waiting period, during which institutional investors are prohibited from bidding on or purchasing newly listed single-family homes, giving individual buyers priority.
Institutional investors—defined as entities owning or managing 10 or more single-family homes in Arizona—exceeding the cap on the bill’s effective date would be prohibited from new acquisitions and encouraged to voluntarily reduce holdings to achieve compliance.
The legislation includes targeted exemptions to avoid unintended impacts on housing efforts, such as:
- Nonprofit organizations focused on affordable housing
- Government housing agencies
- Community land trusts
- Small property owners (fewer than 50 homes)
- Pension funds of fiduciary entities with assets under $5 million
- Homebuilders whose primary business is constructing new homes for individual sale
To ensure transparency and accountability, HB 2325 requires institutional investors to file annual disclosures with the Arizona Department of Housing by March 15, detailing the single-family homes they own, purchase, or sell, along with their compliance with applicable laws.
Enforcement authority rests with the Arizona Attorney General, who may investigate violations, seek injunctive relief, or pursue other remedies. If the Attorney General declines action, county or city attorneys in the relevant jurisdiction are empowered to step in.
Representative Kupper emphasized the bill’s alignment with broader national concerns over housing affordability. “President Trump is right to call this out,” Kupper stated. “Homeownership has long been central to the American Dream and the reward for hard work. When large investment firms buy up neighborhoods, families lose, and prices climb. HB 2325 puts Arizona on the side of working people who want to own a home, raise a family, and stay rooted where they live.”
“Housing costs have climbed nationwide as institutional investors expanded their residential footprint, while homeownership rates for younger Americans have stalled,” continued Kupper. “In Arizona, population growth and limited housing supply have intensified the squeeze on first-time buyers. This bill draws a clear line. Arizona homes should be owned by Arizona families, not treated like financial instruments by distant corporations.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Jan 17, 2026 | Economy, News
By Ethan Faverino |
State Representatives David Marshall (R-LD7) and Ralph Heap (R-LD10) introduced House Bill 2269, a measure to eliminate the state sales tax on electric and gas utility bills for Arizona residents and businesses.
The proposed legislation would suspend the state’s 5.6% sales tax on electricity and natural gas utilities until either $2.3 billion in cumulative tax relief has been provided to Arizonans or December 31, 2046—whichever comes first.
Once the $2.3 billion threshold is reached, the Legislature would then decide whether to extend, modify, or reinstate the exemption.
“People are getting crushed by rising costs, making it harder to live and do business in our state,” said Representative Marshall. “Almost everyone pays a local utility for electricity or gas. Eliminating the tax on this expense represents one of the most immediate and direct ways we can help working families keep costs affordable.”
The 5.6% tax on electricity and gas quietly adds up on monthly bills, leaving the average household paying more than $100 a year in utility tax—funds that could instead support necessities like groceries, housing, and childcare.
Representative Marshall highlighted a structural concern with the current system: “Taxing electric and gas utilities creates a perverse incentive for the government to support increased rate hikes. If rates go up, the state gets more money. That leads some to view rate increases as a source of potential funds for their liberal pet projects. That’s not right; it’s time to put the people of Arizona first.”
“While we’re unsure of any legal way to get ratepayers’ money back, there are things we can do to help reduce costs today,” Marshall continued. “In my opinion, the next best thing we can do is try to provide justice by eliminating taxes on electric and gas utilities moving forward. That’s why, over the next 20 years, we are proposing no state tax on utilities until every penny of the $2.3 billion that was wrongfully extracted from the Arizona ratepayer is metaphorically ‘paid back’ to hardworking families.”
He added, “This bill will save most residents between $100 and $120 per year, on average. Once the $2.3 billion threshold has been met, then the state can determine what it wants to do with the exemption from there, including whether to reassess the tax or extend the exemption even further.”
Representative Heap pointed to actions taken by the Arizona Corporation Commission as the basis for the bill’s $2.3 billion figure: “In 2006, Arizona Corporation Commissioner Kris Mayes catered to outside special interests and adopted expensive renewable energy surcharges that cost ratepayers more than $2.3 billion over the last 20 years. This special interest slush fund also led to foreign-owned boondoggles like the Solana Generating Station, which Kris Mayes personally supported, and which cost ratepayers more than three times the above-market rate of power.”
“While repealing these mandates may help to prevent new costs,” Heap added, “it will do nothing to compensate customers for the unjust surcharges that Kris Mayes forced ratepayers to pay over the last 20 years.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Jan 15, 2026 | Economy, News
By Matthew Holloway |
Republican legislators have sent a $1.1 billion tax relief package to Gov. Katie Hobbs, escalating a high-stakes policy dispute over tax conformity as the state enters filing season.
According to a statement released by House and Senate Republicans, lawmakers rapidly passed House Bill 2153 and Senate Bill 1106, legislation designed to align Arizona’s tax code with federal tax reforms enacted in 2025. Supporters estimate the measures will deliver approximately $1.1 billion in tax relief over the next three years.
The bills now await the governor’s signature.
In a statement posted to X, House Republicans wrote, “With costs still high and tax season underway, Arizona families shouldn’t be left waiting. The Legislature has done its job, now it’s time for the Governor to sign this relief into law.”
Republican leaders said the legislation is intended to provide clarity and certainty for families, small businesses, and tax preparers, particularly as tax season is underway. The package fully conforms Arizona law to recent federal tax changes and codifies provisions such as preventing the taxation of tips and overtime pay.
House and Senate Republicans said the plan is focused on helping working families retain more of their earnings, supporting small businesses and job creators, and ensuring taxpayers receive clear and lawful tax guidance during the filing process.
The legislation’s passage follows criticism from the National Federation of Independent Business (NFIB) over Gov. Hobbs’ separate tax conformity proposal. In a press release earlier this week, NFIB Arizona State Director Chad Heinrich urged lawmakers to reject the governor’s approach and instead advance HB 2153 and SB 1106.
Heinrich argued that Hobbs’ proposal would delay tax certainty by requiring taxpayers to wait until budget negotiations conclude before knowing how Arizona will align with federal tax changes passed in 2025 — potentially leaving taxpayers without clarity until June 2026.
“It’s unclear if the left hand knows what the right hand is doing in the Hobbs administration,” Heinrich said. He criticized the proposal for abandoning 2025 tax forms already posted by the Arizona Department of Revenue and instructing taxpayers to wait until budget negotiations are finalized. “This should be a non-starter,” Heinrich said.
NFIB highlighted HB 2153 and SB 1106 as preferred alternatives, noting that the bills would fully adopt federal tax reforms enacted in 2025, including provisions tied to the One Big Beautiful Bill Act (OBBBA), which the organization said small business owners welcomed for the certainty it provided.
“Small business owners breathed a sigh of relief when the One Big Beautiful Bill Act passed and collectively looked forward to the certainty that it provided,” Heinrich said. “Now, the Governor wants to upend all of that to score partisan political points, breaking precedent with how Arizona has always addressed federal tax changes.”
As previously reported by AZ Free News, legislative supporters say the GOP-backed bills offer broader tax relief than the governor’s more narrowly targeted proposal by fully conforming state law to a wide range of federal tax code changes, including those affecting businesses and itemized deductions.
NFIB noted that Arizona’s small businesses employ approximately 1.2 million people statewide and account for seven out of every ten new jobs created. The organization warned that uncertainty over tax conformity could delay business expansion and hiring.
With the legislation now on the governor’s desk, Republican lawmakers said Arizona families and businesses are waiting to see whether Hobbs will sign the tax relief package or veto another key Republican reform.
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 | Jan 15, 2026 | Economy, News
By Matthew Holloway |
Arizona State Representative Chris Lopez (R-LD16) introduced legislation aimed at reducing costs for ranchers and, ultimately, consumers at the grocery store.
House Bill 2152, dubbed the “No Tax on Troughs” bill, would eliminate Arizona’s transaction privilege tax on water systems and infrastructure improvements on both public and private grazing lands.
The measure targets essential ranching expenses, including fence lines, fence posts, drinking troughs, water lines, and storage tanks, by exempting them from a tax that Lopez says unnecessarily raises operational costs for livestock producers.
“Families are paying more for beef every time they check out at the grocery store,” Representative Lopez said in a press release announcing the bill’s introduction. “Ranchers are facing higher costs just to keep cattle fenced and hydrated, and Arizona is taxing those costs. That cost gets passed straight to consumers.”
Under current law, improvements to grazing infrastructure on federal grazing land, which become federal property once installed, remain subject to Arizona’s sales tax, with no reimbursement to ranchers after ownership transfers. Lopez’s proposal would end that tax treatment.
“At a time when federal land policies already make ranching harder, Arizona should not be adding another layer of cost,” he added.
The Arizona Farm Bureau has publicly argued that farms and ranches face substantial tax pressures, anticipating a potential $5,125 per year increase if federal agriculture tax provisions lapse. The Bureau added that these strains affect decisions on capital expenses like water systems and fencing.
The proposal comes as ranchers across Arizona continue to face rising operational pressures tied to drought conditions, water access, regulatory requirements, and higher input costs. Agricultural groups have warned that these factors have tightened margins for livestock producers and contributed to higher beef prices nationwide.
Arizona’s transaction privilege tax, which functions as a tax on the privilege of doing business rather than a traditional sales tax, has been the subject of multiple reform efforts in recent years as lawmakers debate exemptions and carve-outs for various industries.
Supporters of HB 2152 argue that reducing tax burdens on ranching infrastructure would help lower costs for producers, support wildlife habitat stewardship on public lands, and provide downstream relief for Arizona families at the grocery store.
Lopez represents Legislative District 16, which includes portions of Pinal and Pima Counties.
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 Ethan Faverino | Jan 14, 2026 | Economy, News
By Ethan Faverino |
The Arizona Office of Economic Opportunity released preliminary employment data for November 2025, showing that Arizona’s economy added 21,300 nonfarm jobs year-over-year on a not-seasonally adjusted (NSA) basis, representing a 0.6% increase compared to November 2024.
This growth was driven primarily by the private sector, which added 28,000 jobs over the year, while government employment declined by 6,700 positions.
Arizona’s seasonally adjusted unemployment rate increased to 4.3% in November 2025, up from 4.2% in September and 3.9% one year earlier. Over the same period, the U.S. seasonally adjusted unemployment rate also rose, reaching 4.6%
The state’s seasonally adjusted labor force grew by 27,226 individuals from September to November 2025 and increased by 83,081 individuals (2.2%) year-over-year, reflecting continued population and workforce expansion.
From October to November 2025, Arizona added 17,500 total nonfarm jobs. Key monthly gains occurred in:
- Trade, Transportation, and Utilities: +10,600 jobs
- Government: +2,400 jobs, led by Local Government Education with +2,200 jobs
- Professional and Business Services: +1,600 jobs
- Leisure and Hospitality: +1,500 jobs
- Other Services: +1,400 jobs
- Manufacturing: +1,300 jobs
- Information: +1,000 jobs
Losses were reported in Financial Activities (-1,200 jobs) and Construction (-1,100 jobs), with a minor decline in Private Educational Services (-100 jobs). Health Care and Social Assistance showed no change month over month.
Over the 12 months ending in November 2025, the strongest job gains were made by:
- Health Care and Social Assistance: +14,500 jobs
- Professional and Business Services: +9,000 jobs
- Other Services: +4,800 jobs
- Construction: +2,100 jobs
- Leisure and Hospitality: +1,900 jobs
- Natural Resources and Mining: +1,300 jobs
- Private Educational Services: +1,200 jobs
- Financial Activities: +1,100 jobs
Year-over-year losses occurred in Trade, Transportation, and Utilities (-6,700 jobs), Government (-6,700 jobs), and Manufacturing (-1,300 jobs).
Among Arizona’s major metropolitan statistical areas (MSAs), the Phoenix-Mesa-Chandler MSA recorded the largest year-over-year employment gain, adding 78,100 jobs and bringing total employment to 2,801,000.
The Tucson MSA also saw solid growth, with employment increasing by 14,300 jobs, while the Prescott-Prescott Valley MSA added 2,800 jobs over the year. Smaller gains were reported in the Lake Havasu City-Kingman MSA (1,900 jobs), Flagstaff (1,300 jobs), and Sierra Vista-Douglas (800 jobs). The Yuma MSA experienced the opposite with a year-over-year decline of 1,500 jobs.
Statewide, Arizona’s total nonfarm employment reached 3,302,200 in November 2025 on a not seasonally adjusted basis, up from 3,280,900 one year earlier.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Jan 13, 2026 | Economy, News
By Matthew Holloway |
Republican legislative leaders in Arizona introduced a tax conformity plan on last week, aimed at aligning the state’s tax code with recent federal tax reforms. The proposal, outlined in a joint press release from the Arizona State Legislature, estimates roughly $1.1 billion in tax savings for Arizonans over the next three years.
Senate Finance Committee Chairman J.D. Mesnard (R-LD13) and House Ways & Means Committee Chairman Justin Olson (R-LD25) are sponsoring the plan through two bills: SB 1106 and HB 2153.
According to the release, Republican lawmakers say the conformity effort will provide certainty to taxpayers and tax preparers amid the current filing season. They state the proposal would adjust Arizona’s tax code to reflect provisions of the federal tax overhaul known as the “One Big Beautiful Bill.”
The Republican plan would include measures such as increasing the child tax credit and establishing a deduction for childcare expenses. It would also aim to apply the federal tax reforms to Arizona’s individual and business tax structures.
“This is an urgent matter. With tax season underway, tax professionals and families alike need clear guidance now,” Senate President Warren Petersen said. “Until the Legislature acts and the Governor signs this plan into law, there is real confusion about how to handle state tax returns. We’re urging Governor Hobbs to join us in resolving this issue promptly by signing this historic tax cut when it hits her desk.”
House Speaker Steve Montenegro (R-LD29) is quoted in the release, asserting that formal legislative action is needed to resolve confusion created by recent state tax guidance issued by the governor’s office, which he says assumes legislative action has already occurred.
Montenegro explained, “The Governor jumped ahead of the law by issuing state tax guidance this week that assumes legislative action – which hasn’t happened yet – and her recent executive order only deepens confusion. This kind of unilateral overreach undermines the process and leaves families, tax preparers, and businesses stuck in the middle.”
He added, “The Legislature is moving to restore certainty, respect the separation of powers, and make sure Arizonans have clear, lawful guidance.”
The press release states that Republican sponsors contend the plan’s focus is on working families, seniors on fixed incomes, and small businesses, and that it would codify measures such as preventing taxation of tips and overtime pay.
SB 1106 and HB 2153 are set to be debated in the Legislature as the session begins.
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.
