Arizona Legislature Passes Housing Affordability Bill

Arizona Legislature Passes Housing Affordability Bill

by | Mar 9, 2024 | News

By Daniel Stefanski |

Arizona legislators continue to work on solutions to help their constituents afford and own their own homes.

On Wednesday, the Arizona State Senate passed HB 2570, the Arizona Starter Homes Act, with a bipartisan vote. The bill, which was sponsored by Senate Majority Leader Sonny Borrelli and House Majority Leader Leo Biasiucci, “creates municipal prohibitions relating to home designs and single-family home lot sizes” – according to the overview provided by the chamber.

“Hardworking Arizonans are finding it increasingly difficult to purchase their first home and begin their pursuit of the American dream. This legislation is a step in the right direction in bringing prices down by eliminating some of the restrictive government red tape and expensive regulatory constraints being passed onto homebuyers,” said Senator Borrelli. “Government should do everything in its power to make the lives of our citizens better, but local municipalities are overstepping their authority by trying to control private property rights, instead of focusing their attention on valid rules and regulations protecting against nuisance and safety issues. The Arizona Starter Homes Act is a no-brainer, and I’m encouraged it received bipartisan support. I look forward to the Governor taking appropriate action on behalf of our citizens’ lives and livelihoods by signing this bill into law.”

The bill passed the Senate with a 16-13 vote. One member did not vote.

Last month, the Arizona House of Representatives approved the proposal with a 33-26 vote (with one vacant seat).

Senator Anna Hernandez, a Democrat, applauded the passage of the legislation from her chamber, writing that the result “is amazing for all Arizonans!”

Earlier this week, Democrat State Representative Analise Ortiz stated that this bill “provides the best opportunity for the American dream of homeownership.” She added that “we don’t have to be ‘forever renters,’” and that “our generation deserves to own a home & build generational wealth.”

While the support in the legislature for this piece of legislation is bipartisan, towns and cities around the state have indicted strong opposition to its proposed policies. On the Arizona Legislature’s Request to Speak system, representatives from the cities of Prescott, Scottsdale, Avondale, Goodyear, Sedona, Flagstaff, Eloy, Mesa, Buckeye, Chandler, Litchfield Park, Glendale, Tucson, and Yuma; as well as from the League of Arizona Cities & Towns, Chandler Chamber of Commerce, and Queen Creek Chamber of Commerce, signed in to oppose the bill. Representatives from the Arizona Neighborhood Project, Republican Liberty Caucus of Arizona, Home Builders Association of Central Arizona, and the Arizona Homeowners Coalition indicated their support for the legislation.

HB 2570 now heads to Governor Katie Hobbs’ desk for a decision on its fate.

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

Several Arizona Cities Voice Opposition To Bill That Would End Food Sales Tax

Several Arizona Cities Voice Opposition To Bill That Would End Food Sales Tax

by | Jan 22, 2023 | Economy, News

By Terri Jo Neff |

It sounds simple enough – repeal any sales tax on the purchase of food for home consumption currently being imposed by two-thirds of Arizona’s municipalities and thereby provide relief for residents against the ongoing effects of inflation, high fuel prices, and increases in utility costs.

That is the purpose behind House Bill 2061 introduced earlier this month by House Majority Leader Leo Biasiucci along with 35 co-sponsors. Sales taxes in Arizona are formally known as a transaction privilege tax (TPT).

Arizona does not have a state TPT for the sale of food for home consumption. But supporters of Biasiucci’s bill note that without a change, those who shop in a city or town with a municipal TPT on food will continue to be hit with a double whammy – more TPT being paid along with increasing grocery prices.

There is, of course, a quiet benefactor to those inflation-driven higher grocery prices – the 65 of Arizona’s 91 incorporated cities and towns which tax food for home consumption. The higher the prices, the greater their revenues.

Several municipalities have gone on record against HB2061, including the cities of Apache Junction, Avondale, Buckeye, Chandler, Coolidge, Glendale, Globe, Goodyear, Litchfield Park, Page, Prescott, Scottsdale, and Tempe, as well as the towns of Florence, Fountain Hills, and Gilbert.

Two other cities – Phoenix and Tucson – which do not even have a city sales tax on food for home consumption still oppose HB2061, as do lobbyists such as the League of Arizona Cities & Towns, the Professional Firefighters of Arizona, and Arizona AFL-CIO.

HB2061 cleared its first hurdle last week with a 6 to 4 vote in the House Ways & Means Committee. All four no votes came from Democrats on the committee. One lawmaker who advocated for the legislation during the committee vote was Rep. Travis Grantham (R-Scottdale).  

“It’s unthinkable to me that people can stand up and justify taxing something people need to survive on a day to day basis,” Grantham said. 

HB2061 is slated to be considered by the House Rules Committee on Monday. It will then be debated by the House, where many lawmakers expect to hear complaints that cities and towns will have to cut services if the bill passes.

It is an argument Biasiucci (R-Lake Havasu City) refuted last week, pointing out that the roughly one-third of Arizona’s cities and towns without a sales tax on food for home consumption are still able to offer municipal services.

If passed into law, the elimination of the food sales tax would take effect later this year. However, there is nothing in state law preventing any municipality that currently has such a tax from repealing it on their own.

The Joint Legislative Budget Committee estimates HB2061 could save Arizonans nearly $160 million in Fiscal Year 2022 and potentially growing to a savings of more than $195 million in FY 2026.

Terri Jo Neff is a reporter for AZ Free News. Follow her latest on Twitter, or send her news tips here.