by Jonathan Eberle | Jul 24, 2025 | Economy, News
By Jonathan Eberle |
Republican leaders in the Arizona Legislature are highlighting a string of tax cuts they say are aimed at providing relief to working families, renters, and small business owners across the state. Over the past three years, lawmakers have passed three separate tax measures that they argue will reduce financial burdens for everyday Arizonans.
The most recent change, Senate Bill 1069, was approved last month and is set to take effect on January 1, 2026. The legislation raises Arizona’s business personal property tax exemption to $500,000, a move Republican lawmakers say will particularly benefit small businesses by cutting down on tax bills for equipment and other property used in daily operations.
In 2023, the legislature also passed Senate Bill 1184, which bans municipal excise taxes on residential leases starting in 2025. Supporters say the measure will help renters by prohibiting local governments from adding extra taxes to apartment and home leases, a cost often passed directly to tenants.
That same year, lawmakers enacted the Arizona Families Tax Rebate through Senate Bill 1734. The rebate provided one-time direct payments to Arizona households: up to $750 for single filers and up to $1,500 for joint filers. Families received $250 per child under 17, while older dependents qualified for $100 each.
Senate President Warren Petersen praised the tax cuts as part of a broader conservative approach to governance.
“At a time when families are feeling squeezed, we’re doing what government should—getting out of the way and letting our hardworking taxpayers keep more of what they earn,” Petersen said in a statement. “These tax cuts aren’t handouts. They’re the result of smart, conservative leadership that puts everyday Arizonans first.”
Petersen also framed the tax policy as aligned with President Donald Trump’s “America First” agenda, signaling that Arizona Republicans see these moves as part of a larger national effort to spur growth and reduce government intervention.
Democratic lawmakers, meanwhile, have raised concerns in past sessions that cutting taxes could limit state and local governments’ ability to fund essential services, including education and infrastructure. However, GOP leaders maintain that the state’s healthy revenues give them room to ease tax burdens without sacrificing core programs.
With these three measures now on the books, Arizona Republicans are positioning themselves as champions of taxpayer relief ahead of the 2026 legislative session and upcoming election cycles.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Elizabeth Troutman | Mar 17, 2024 | Economy, News
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.
by AZ Free Enterprise Club | Nov 19, 2023 | Opinion
By the Arizona Free Enterprise Club |
If you look up “failure” in the dictionary, it’s probably only a matter of time until you start seeing images of Katie Hobbs’ time as Governor of Arizona. Hobbs kicked off her reign back in January and immediately got off to a rocky start. After being in office for just over a month, Hobbs had her inauguration fund called into question, had her pick to lead the Arizona Democratic Party rejected, and was booed at the 16th Hole of the Waste Management Phoenix Open.
If that wasn’t enough, Hobbs’ nominations for agency directors have been a complete disaster. Her pick to lead the Department of Health Services, Dr. Theresa Cullen, was rejected for her COVID imperialism. Her nominee for Housing Director was rejected due to a history of plagiarism. And she was forced to withdraw her nominee for Arizona Registrar of Contractors, former Democratic State Senator Martín Quezada, over his alliance with antisemitic extremism. It’s no wonder why Hobbs was listed as one of the least popular governors in the nation.
That’s probably why Hobbs is willing to do anything she can to get some good publicity, but her latest stunt was another misfire…and broke the law…
>>> CONTINUE READING >>>
by AZ Free Enterprise Club | May 17, 2023 | Opinion
By the Arizona Free Enterprise Club |
Save Our Schools Arizona (SOS) and some Dem lawmakers were up in arms last week. And anytime that happens, you know you’re probably doing something right.
Last Wednesday, the Republican-led legislature passed the $17.8 billion budget, and it was a big win for students, parents, school choice, and Arizona’s taxpayers. Despite the fact that Governor Katie Hobbs made it clear that she planned to dismantle school choice for all with a full repeal of the beloved Empowerment Scholarship Accounts (ESA), Hobbs signed the budget without any cap or restrictions on the historic program. This should be cause for celebration—unless, of course, you’re SOS or certain Democrat lawmakers.
Predictably, SOS got right to work on spreading lies about the popular ESA program, claiming it would drain K-12 public schools of funding, hurt Arizona’s economy, and even bankrupt the state. That last lie is particularly absurd, but then again SOS has a history of such desperation when its back is against the wall. (Can you imagine being this bent out of shape that children from all walks of life can get an education that best fits their needs?)
The reality is that the ESA program has absolutely exploded during this fiscal year…
>>> CONTINUE READING >>>
by Daniel Stefanski | May 15, 2023 | News
By Daniel Stefanski |
Arizona taxpayers are going to get some extra cash for the holidays thanks to Republicans giving back from this fiscal year’s budget.
Included in the Fiscal Year 2023 Arizona Budget was the insertion of the Arizona Families Tax Rebate. According to a release from Arizona Freedom Caucus Chairman and Senator Jake Hoffman, “Arizona families can expect to receive one-time tax rebates of up to $750 for qualifying households. Those with dependents under the age of 17 will receive $250 per dependent, or those with dependents 17 and older will receive $100 per dependent, capped at three dependents. Households must have a tax liability of at least $1 in order to be eligible. This criterion is based off of 2021 state tax returns.”
Hoffman explained the motivation for the tax rebate, writing, “Gas, groceries, housing and energy prices have surged over the past three years since Democrats took control of the federal government. As a result, Arizona families are hurting while they attempt to pay for the most basic necessities each month, like putting food on the table, keeping a roof over their heads, paying medical bills, keeping the lights on and filling up their gas tanks. In the meantime, government is flush with cash and in the position to give back to our honest, hardworking taxpayers.”
“This is the first time in at least 30 years our state lawmakers have been able to step up to the plate to provide a tax rebate of this magnitude for our citizens,” said Hoffman. “I’m proud of the leadership of the Arizona Freedom Caucus, and for the support of our Republican colleagues, to dedicate $260 million to helping struggling Arizona families. Despite the current economic uncertainty, the Arizona Freedom Caucus, and conservative Republicans at-large, remain fully committed to keeping Arizona free, vibrant, and prosperous for Arizona families, and all Arizonans, for generations to come. We hope this extra money will make life a little less stressful for our Arizona families as they approach the Christmas holiday season later this year.”
This tax rebate appeared to be the focus of discontentment from some Democrats at the state legislature. Earlier in the week, Representative Oscar De Los Santos took to Twitter to share his thoughts about the recently negotiated budget, saying, “Important context missing from AZ budget debate: Years of massive GOP corporate tax giveaways have resulted in AZ not having the resources – this year & in the future – we need to fund our schools, ensure housing & healthcare for all, solve the water crisis, and more.”
De Los Santos’ charge led Republican Representative Justin Heap to respond: “By ‘corporate tax giveaways’ do you mean the ‘Family Tax Rebate’ that will give every Arizona family with children a check? Leave it to Democrats to characterize giving some of their tax money back to Arizona families as ‘tax giveaway.’ It’s not our money, it’s theirs.”
The pushback from Heap led another Democrat lawmaker, Representative Athena Salman, to add, “That’s false. Your rebate program leaves out families like mine who started and grew our families after 2022. Plus non-tax filers. Go read the bill, it’s short.”
Scot Mussi, the President of the Arizona Free Enterprise Club, told AZ Free News, “we were very pleased to see the budget not only be structurally balanced, but also return nearly $300 million back to taxpayers. That money belonged to hardworking families, and we are glad it’s getting returned to them.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
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