Three House Members Urge IRS To Save Arizona Families From Additional Taxation

Three House Members Urge IRS To Save Arizona Families From Additional Taxation

By Elizabeth Troutman |

Two House Republicans and one Democrat from Arizona wrote to IRS Commissioner Daniel Werfel asking the agency to reconsider its decision to subject the Arizona Families Tax Rebate Program to federal income taxation. 

Representatives David Schweikert, R-Ariz., Juan Ciscomani, R-Ariz., and Greg Stanton, D-Ariz., sent the letter Wednesday. 

“We urge the IRS to reconsider its determination and provide expedited relief to compliant Arizonan taxpayers who have already filed their 2023 tax returns,” the three wrote. 

More than 700,000 Arizona taxpayers were eligible to receive a one-time tax rebate as the state continues to recover from historic inflation levels that placed severe financial strain on families across the state, according to the representatives’ news release. 

“The country is poorer now than it was three years ago, and Arizonans are no different, facing the brunt of financial pressure with supermarket prices now nearly 25% higher than in January 2020, for example,” the letter says. “State officials acted in good faith with the reasonably available information to provide more than 700,000 households with much-needed relief from price increases on everyday goods and services.”

Tax rebates enacted by 21 states were determined to be tax exempt in guidance issued by the IRS in February 2023, Schweikert, Ciscomani, and Stanton wrote. Though Arizona’s tax rebate wasn’t signed into law for another three months, the IRS extended its decision to make the rebate taxable past the period when the state issued payments, according to the letter. 

“In December 2023, the IRS relayed its decision orally through a video meeting, providing no written explanation until February 15, 2024, eighteen days after the start of tax season, and only in response to a letter from the Arizona Attorney General challenging the decision,” the letter says.

Arizona taxpayers are estimated to owe $20.8 million in extra federal taxes due to the IRS’ inconsistent rationale in failing to specify the factual and legal basis for the 21 states’ rebates and payments that were deemed nontaxable in 2022, according to the representatives.

“The inconsistency and delay in communication have resulted in undue financial strain on Arizonans,” the letter says. 

Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.

Lawmakers Clash With Cities And Towns Over Arizona Starter Homes Act

Lawmakers Clash With Cities And Towns Over Arizona Starter Homes Act

By Daniel Stefanski |

A political battle is underway over a bill that could help more Arizonans afford and own homes.

Earlier this week, a bipartisan coalition of Arizona lawmakers clashed with the Arizona League of Cities and Towns over the fate of the Arizona Starter Homes Act, which currently resides in the Governor’s Office.

Both chambers of the legislature cleared the bill with bipartisan votes. The proposal would “create municipal prohibitions relating to home designs and single-family home lot sizes” – according to the overview provided by the chamber.

In a press release from the Arizona State Senate Republican Caucus, Republican and Democrat lawmakers highlighted a statement from the Executive Director of the Arizona League of Cities and Towns, where he said, “Zoning is something that we cannot support. And we told them from the beginning.”

Director Belshe responded to the charge on “X,” writing, “I would like to address a quote attributed to me in the local media yesterday. My wording may have been a bit clunky with the reporter which led to some confusion. Generally, the League and our cities view by-right zoning from a state mandate as nonnegotiable as it tends to be anti-democratic and fails to consider the nuances of development and will lead to considerable unintended consequences.”

Belshe added, “That said, we are actively working on bills that will streamline and allow ADU’s, middle housing options, and adaptive reuse of commercial buildings. We’re additionally working on legislation that would make rezoning processes more efficient. With regards to HB 2570 the League was never given an opportunity to negotiate on the bill. Amendments were crafted by the homebuilders to secure votes of individual legislators.”

Senate President Warren Petersen took issue with the League’s ardent opposition to this bipartisan solution, saying, “The Governor is out of excuses to not sign this bill. The League just made their intentions clear. The Governor needs to do the right thing here to make housing more affordable and stand up to the League lobbyists whose only objective is to ensure nothing gets done at the legislature.”

Democrat Senator Theresa Hatathlie also weighed in to support the bill. She said, “Your home is your sacred place. It’s where you raise your family and care for your elders. I’m tired of the League and their lobbyists who come here, year after year, to deny these opportunities for the people that I represent. Enough is enough. Please sign the Arizona Starter Homes Act, Governor.”

Phoenix Mayor Kate Gallego urged the governor to veto the bill, stating. “We need more affordable housing in Arizona, but HB 2570 misses the mark. It doesn’t guarantee that starter homes would be affordable – and instead, increases profits for homebuilders and overlooks critical infrastructure and water needs. It’s curious the prime sponsors of the bill excluded their own communities from the new rules, choosing to disproportionately impact cities like Phoenix that have planned for growth and high-density development. I urge Governor Hobbs to veto this bill.”

House and Senate legislators had recently held a press conference outside of the state capitol building to champion their efforts and to lobby the governor to sign their legislation.

After the presser, Senator Wendy Rogers posted, “Property rights are a fundamental freedom in our constitutional republic. It is up to us legislators to enable that right in every way possible… especially in our rural areas where the American dream of homeownership is becoming less attainable for hard-working Arizonans. This bill is a step in the right direction to help bring prices down!”

HB 2570 was transmitted to Governor Katie Hobbs on March 12.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

Senate Passes Ballot Referral To Ban Preferential Treatment In Hiring Based On Race

Senate Passes Ballot Referral To Ban Preferential Treatment In Hiring Based On Race

By Daniel Stefanski |

Another ballot referral is one step closer to Arizona voters.

Earlier this week, the Arizona Senate passed SCR 1019, which would “constitutionally prohibit the state from compelling an individual to endorse giving preferential treatment to or discriminating against any individual or individuals on the basis of race or ethnicity as a condition of any hiring, promoting or contracting decision” – according to the purpose from the chamber.

The ballot referral was approved by the state Senate with a 16-12 vote. Two members did not vote.

The Arizona Senate Republicans Caucus “X” account posted, “JUST IN – Senate Democrats voted ‘NO’ on a ballot referral that would ask voters in November to consider a state ban on hiring, promoting, or providing preferential treatment to employees based on their race or ethnicity. Senate Republicans believe qualifications, performance, experience, and character should be the deciding factors, not skin color.”

Senator Anthony Kern sponsored the proposal. He was joined by Senators Wendy Rogers, Justine Wadsack; and Representatives Justin Heap, Rachel Jones, Alex Kolodin, and Austin Smith as cosponsors.

Last month, the measure cleared the Senate Government Committee with a 4-3 vote (with one member not voting). After the positive result, the committee chairman, Senator Jake Hoffman, issued the following statement: “Diversity, Equity, and Inclusion, also known as DEI, is racism by another name. These policies and programs promote preferential treatment, or discrimination, based on the color of one’s skin, their race, or ethnicity. An example of this is when an employer has two resumes in front of them, one candidate is clearly more qualified than the other because of their skills and experience, but the less qualified candidate is chosen for the job because their race is instead prioritized. This is happening right now in our universities, it’s happened in our state agencies, and it’s unequivocally wrong.”

Hoffman added, “As Chairman of the Senate Committee on Government, I was happy to advance SCR 1019, a ballot measure sponsored by Senator Kern, to reaffirm the state’s protections against racial discrimination or racial ideologies like DEI. I’m incredibly concerned with Democrats describing this racist practice as ‘progress.’ All Democrats in committee voted in support of racism.”

On the Arizona Legislature’s Request to Speak system, representatives from the Barry Goldwater Institute for Public Policy Research, and Heritage Action for America, supported the ballot referral. Representatives from the Arizona Board of Regents, Arizona Education Association, City of Phoenix, Save Our Schools Arizona, Arizona National Organization for Women, State Conference NAACP, and Rural Arizona Action, signed in to oppose the proposal.

The referral will now be considered by the Arizona House of Representatives. If passed by the state House, SCR 1019 will head to the November General Election ballot for an up-or-down vote from Arizona voters.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

552K Arizonans May Lose Internet After Federal Subsidy Program Ends In April

552K Arizonans May Lose Internet After Federal Subsidy Program Ends In April

By Corinne Murdock |

The Federal Communications Commission (FCC) says that the Affordable Connectivity Program (ACP) will end come April due to a lack of funding, impacting about 552,000 Arizonans who rely on the program for discounted or free internet. 

FCC Commissioner Geoffrey Starks offered that data and insight in his appearance with the director of the Treasury Department Capital Projects Fund, Joseph Wender, before the INCOMPAS Policy Summit last week. As of January, ACP has a total of about $2.5 billion left in remaining funds out of $17 billion in total appropriations. INCOMPAS is an internet and competitive networks association advocating for competition policy; member companies include Amazon, Dish, Google, Microsoft, Netflix and Verizon.

“High-speed internet is not a luxury anymore, it’s an absolute necessity,” said Starks. “If ACP ends, [I] predict that the end result will be that many of these households will be unable to stay online, will be unable to stay connected.”

ACP is part of the $14.2 billion from the Infrastructure and Investment Jobs Act (IIJA) modifying and extending the Emergency Broadband Benefit Program, now near exhausted. ACP gave certain low-income households funds to cover their monthly internet bill, as well as a one-time discount on the purchase of a laptop, desktop computer, or tablet. Monthly discounts amounted to $30 for regular Americans, and $75 for Americans living on tribal lands. Discounted electronic purchases amounted up to $100. Most of the participating companies offered internet plans for which ACP covered the total bill.

ACP-eligible families were households with an income at or below 200 percent of the Federal Poverty Guidelines, or participants  in welfare programs like SNAP, Medicaid, Housing Choice Voucher Program (Section 8), public housing, SSI, WIC, or Lifeline; participants in the Free and Reduced-Price School Lunch Program or School Breakfast Program; recipients of a Federal Pell Grant; and participants in tribal-specific programs such as Bureau of Indian Affairs General Assistance, Tribal TANF, Affordable Housing Programs for American Indians, Alaska Natives, or Native Hawaiians.

Participating companies in Arizona included Spectrum (Charter Communications Operating), Mediacom, Nexus Telecom, Comcast Xfinity, Metro by T-Mobile, and Cox Communications.

Arizonans have claimed over $313.6 million as of January, according to FCC data. Maricopa County led in claims, using up over $149.7 million in ACP funds for over 266,000 households, followed by Pima County, $52.3 million for 86,200 households; Yuma County, $19.7 million for 31,900 households; Navajo County, $18.8 million for 13,200 households; Apache County, $17.6 million for 11,500 households; Pinal County, $12.7 million for 22,400 households; Mohave County, $7.5 million for 10,100 households; Coconino County, $7.4 million for 6,000 households; Cochise County, $5.8 million for 11,000 households; Yavapai County, $3.8 million for 6,300 households; Santa Cruz County, $2.4 million for 3,800 households; Gila County, $1.4 million for 2,100 households; Graham County, $821,000 for 1,200 households; La Paz County, $510,000 for 800 households; and Greenlee County, $129,000 for 180 households. 

The FCC reported that no specific county or household data could be given for $12.6 million funds spanning over 7,400 households.

After ACP provides a partial reimbursement for May, the program will conclude. The FCC reported that over 23 million households were impacted by the ACP wind-down; the agency froze enrollment into the program last month. 

Arizonans enrolled with ACP should have received a written notice in January notifying them of ACP’s end. A second notice should be issued by March 19, and a final notice should be issued as part of the last bill or billing cycle including the ACP discount. 

An FCC survey of a sample size deemed representative of the entire ACP population reported that over two-thirds of ACP’s 23 million households, about 15.6 million, had inconsistent or zero internet access prior to ACP. 80 percent of those respondents cited affordability as the reason. 

The FCC based their analysis on just over 5,300 respondents, or about .02 percent of the total ACP population. 

According to the FCC, 50 percent of ACP households were Black or Latino; nearly 50 percent were military households; over 329,000 were tribal households; over 4 million were elderly households; and over 10 million were households with family members over the age of 50. 

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

Superintendent Tom Horne Says Remedying Teacher Shortages Is Priority

Superintendent Tom Horne Says Remedying Teacher Shortages Is Priority

By Elizabeth Troutman |

Arizona State Superintendent Tom Horne said Tuesday that his top priority is reversing the teacher shortage in the Grand Canyon State. 

Arizona is facing a serious teacher shortage with more teachers leaving than staying, he said.

“We have got to turn around the situation, bring about equilibrium, so we’re not, we’re not losing more teachers than we’re gaining,” Horne said in his speech to the House Education Committee. “We cannot continue doing that.”

Horne said teacher shortages are a “potential catastrophe” that requires immediate attention.

“Currently, we have 60,000 teachers in our classrooms. 8,000 of them are leaving each year,” Horne said. “Our educator preparation programs produce 1,900 per year that actually show up in our classrooms. 2,815 teachers also return to the classrooms. That is a net loss of about 2,300 per year. If that trend were to continue, it would eventually lead to zero teachers.”

His speech also addressed reading proficiency levels. Horne said it’s a “scandal” that some Arizona high schoolers cannot read. 

“Kids go to school day after day, every day throughout the year, eight years,” he said, “and they still can’t read.”

Horne outlined sixteen initiatives to increase academic outcomes in public schools. Some of these include growing the number of school improvement teams, leadership training, paperwork reduction, school safety, using data to improve academic outcomes, and teacher development.

“We entered into an agreement with the leaders of the major companies in our state: we will provide the skilled workers,” he said. “In return, the businesses will either teach our career technical education teachers what skills to teach or will provide people to teach those skills.”

Horne said he supports legislative efforts to raise teacher salaries as well as a bill to require more district and charter administrative support for teacher discipline. Those issues were cited in a recent survey of teachers as the top two reasons for leaving the profession, Horne noted.

Elizabeth Troutman is a reporter for AZ Free News. You can send her news tips using this link.

Child Sex Traffickers Could Face Life In Prison

Child Sex Traffickers Could Face Life In Prison

By Daniel Stefanski |

A measure to strengthen protections for Arizona children is one step closer to state voters.

On Monday, the Arizona State Senate passed SCR 1021, which “statutorily requires an adult who is convicted of a class 2 felony for any child sex trafficking offense to be sentenced to natural life imprisonment” – according to the purpose from the chamber. If approved by both the Arizona House and Senate, the proposal would be decided by state voters in the November General Election.

The ballot referral received bipartisan support with a 20-8 vote (with two members not voting).

Senator Shawnna Bolick, the sponsor of the referral, issued the following statement after her chamber’s positive action: “I am a mother, wife, and protector of our children. Today, my fellow Republican senators and I took a stand to stop child sex trafficking across Arizona. Human trafficking is not specific to any age, race, or gender, and it occurs throughout rural, suburban, and urban areas across our Grand Canyon State. With a wide-open southern border and derelict government agencies, cases of human trafficking are on the rise.”

The Senate Republican Caucus’ press release shared information from the Arizona Attorney General’s Office that “the average age of entry into sex trafficking in Arizona is 14 years old, but there have been numerous cases of children being victimized at a much younger age.”

Back in February, SCR 1021 was given a green light by the Senate Judiciary Committee with a 5-2 vote. Democrat Senator Mitzi Epstein joined all Republicans in sending the referral to the full chamber.

On the Arizona Legislature’s Request to Speak system, representatives from Common Sense Action for America and Center for Arizona Policy indicated their support for the legislation. Representatives from the Arizona Coalition to End Sexual and Domestic Violence, Middle Ground Prison Reform, and Arizona National Organization for Women signed in to oppose the proposal.

Bolick added, “Republican state lawmakers stand united to send a message to those disgusting animals responsible for stealing our children’s innocence – Arizona’s children are our most valuable resource. We would like everyone to know, our children are not for sale. One Arizona child who is victimized is one too many.”

SCR 1021 will now be considered by the Arizona House of Representatives.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.