by Daniel Stefanski | Oct 8, 2024 | Economy, News
By Daniel Stefanski |
A first-term west valley mayor in Arizona is helping to lead his city to greater economic prosperity.
Late last month, City of Peoria Mayor Jason Beck wrote an op-ed for a local publication, touting the work he and members of his municipal council were doing to “ensur[e] that Peoria remains an attractive destination for businesses while providing essential opportunities for our residents.”
Beck announced that the Peoria City Council had given a greenlight to amendments for the Peoria General Plan 2024 in a September 17 meeting. He reported that the approved amendments would “significantly enhance our city’s economic landscape and improve the quality of life for all residents.”
In the op-ed, Beck discussed a vital part of the amendments considered and rubberstamped by the council, which was a “new state land designation [that] includes the 1,620-acre North Peoria Gateway and the 6,700-acre Peoria Innovation Core.” He stated that “this designation will enable us to create a cohesive master plan for these areas, promoting strategic and well-coordinated growth rather than a fragmented development approach.”
The mayor also addressed some concerns that may have been percolating throughout the community in the lead-up to the action from the city council. He assured readers that “in no way do these designations change zoning or diminish protections for our natural resources. Existing city ordinances…will continue to safeguard the landscapes and wildlife that we all appreciate as Peoria residents.”
Beck championed the work of his municipality to “build a resilient future for Peoria” by “enhanc[ing] our ability to protect our environment while fostering economic development that benefits all residents across our city.” He forecasted the upcoming October council meeting, where the members would talk about additional economic development strategies to grow Peoria.
Under Beck’s visionary leadership, the City of Peoria has cemented its status in the Grand Canyon State of being one of the up-and-coming economic bastions in Arizona. The Mayor’s TYR Tactical is one of Peoria’s largest employers, and he used that experience to shape his economic development vision for the city’s future. Before taking office as the city’s chief executive, he campaigned on the construction of a city owned airport “that will create thousands of jobs and billions in economic impact” for Peoria, as well as the “creation of culture that is not only Pro Business but moves at the speed and efficiency of business.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Mar 23, 2023 | Economy, News
By Daniel Stefanski |
Another Republican-led proposal to stimulate and incentivize business development in Arizona is moving through the legislature – though it is unsurprisingly meeting serious resistance from the other side of the aisle.
Senator Steve Kaiser sponsored SB 1559, which deals with a reduction in the income tax and fees for new businesses across the state. According to the purpose of the legislation provided by the State Senate, the bill “prescribes a threshold of five percent of state contracts the Arizona Department of Administration (ADOA) is encouraged to award to new businesses each year and exempts a new business and a person who is establishing a new business from filing fees to establish the new business.” It also “establishes an individual and corporate income tax subtraction in prescribed amounts for a new business’s first three years of operation.”
The prescribed amounts for individuals (income received from the new business) and corporations (Arizona gross income) are 100 percent for the first year of operation, 50 percent for the second year, and 25 percent for the third.
Earlier this week, Senator Kaiser’s piece of legislation passed the chamber with a party-line 16-12 vote – with two Democrat Senators not voting (Burch and Gonzales). This action followed two, prior partisan votes in Senate Committees– first in the Finance Committee back in February, where SB 1559 cleared 4-3; and in the Rules Committee, 4-3.
The Joint Legislative Budget Committee (JLBC) previously published data from the U.S. Census Bureau’s Business Formation Statistics, showing that there were 7,919 business formations in Arizona in 2022. The JLBC also projected that “the number of new businesses will grow to 8,523 in 2023, 9,173 in 2024, 9,872 in 2025, and 17,561 in 2026.”
Earlier in the Senate Finance Committee, Democrat Senator Mitzi Epstein explained why she was voting against the transmission of the bill to the full chamber, saying that though she was a small business owner and understood the need for these businesses to receive help and access to resources, she believed the provisions of this legislation would be “ripe for abuse.” She feared that SB 1559 would “create a whole new industry” of entrepreneurs helping small businesses take advantage of the tax and fee incentives provided by this proposal (if enacted).
In the committee, Senator Kaiser, the bill’s sponsor, touted his previous experience as a business owner and empathized with young business owners (especially those businesses under five years old) trying to keep their operation afloat and financed in the early years. He stated that “we need to really support our young businesses as much as possible. They do produce the most new jobs compared to existing small businesses and large businesses, and whatever we can do to help them survive and thrive is going to be helpful.”
Another Democrat Senator, Brian Fernandez, told the Finance Committee that he was a no, but he possibly could be swayed to flip his position if there were changes to the bill, inferring that his suggested tweaks mirrored the concerns expressed by his colleague, Senator Epstein.
Representatives from the Arizona Firearms Industry Trade Association and North Phoenix Chamber of Commerce supported this legislation through the Senate process, while a representative for the Arizona Center for Economic Progress registered opposition to the bill.
Before the vote on the Senate floor, the Arizona Senate Democrats Caucus tweeted that “SB 1559 is another handout for businesses,” and warned that “a new business income tax subtraction could cost Arizona’s General Fund an estimated $34.3M in FY25, $36.5M in FY26, and $38.9M in FY27.”
SB 1559 now heads to the Arizona House of Representatives for consideration.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
