by Jonathan Eberle | Nov 23, 2025 | News
By Jonathan Eberle |
A new dispute erupted at the Arizona State Capitol on Thursday after Senator J.D. Mesnard (R-LD13), chair of the Senate Committee on Finance, accused Governor Katie Hobbs of misleading the public with an executive order tied to federal tax changes enacted earlier this year.
In a press release, Mesnard said Hobbs’ order directing the Arizona Department of Revenue to update state tax forms “blatantly misleads the public” by implying that her administration was delivering new tax relief. According to Mesnard, the changes she referenced were already established under H.R. 1, a federal tax reform package advanced by former President Donald Trump and congressional Republicans.
Hobbs’ order, he argued, does not create any new state-level reductions. “Middle-class families deserve honesty, not last-minute attempts to steal credit for others’ hard work,” Mesnard said, asserting that Hobbs was attempting to claim political ownership of reforms she opposed. He noted that Democrats in Congress uniformly voted against the federal tax package and that—despite the governor’s framing—the adjustments she cited are already federal law.
Mesnard also criticized the order on procedural grounds, calling it inappropriate for a governor to “direct” the Department of Revenue’s handling of state tax policy. He said such authority rests with the Legislature.
The senator added that Republicans plan to advance legislation next session to formally align Arizona’s tax code with the federal reforms and expand on them where possible. But he warned that Hobbs’ order could create “uncertainty and chaos” for taxpayers in the meantime.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by AZ Free Enterprise Club | Aug 3, 2025 | Opinion
By the Arizona Free Enterprise Club |
This year, the tax cuts from the Trump Tax Cuts and Jobs Act of 2017 were set to expire. Failing to extend the cuts would have resulted in a 22% tax hike for the average taxpayer. For Arizonans, it would have meant an average tax increase of $2,824. And there would have been an even larger tax increase for Arizona small businesses. Thankfully, earlier this summer Congress finally passed Trump’s One Big Beautiful Bill (OBBB), not only extending the personal income tax cuts from 2017 but making them permanent.
The OBBB also included several new tax provisions as well, such as no tax on tips and overtime, an increase in the standard deduction, full expensing and special depreciation for business, just to name a few. This assortment of changes to federal tax law now leaves states like Arizona with a big decision to make: provide partial conformity tax relief, full tax relief, or do nothing and provide no conformity tax relief at all.
This should be an easy choice, as choosing the non-conformity option would leave Arizona taxpayers with one big ugly tax bill to pay.
How big of a tax bill?
>>> CONTINUE READING >>>
by Matthew Holloway | May 7, 2025 | Economy, News
By Matthew Holloway |
The latest job report from the National Federation of Independent Business (NFIB) shows that 34% of small business owners (seasonally adjusted) reported that despite having open positions in April, they could not find employees to fill them. Chad Heinrich, state director for NFIB in Arizona, offered some suggestions for Arizona lawmakers to address the situation and urged the passage of AZ Senate Bills 1069 and 1215.
“Arizona’s small businesses are the foundation of our economy, and our state has a chance to lead the way in empowering them,” Heinrich said in a statement. “Lawmakers have already done good work keeping taxes and regulations in check. Now, I urge them to pass Senate Bills 1069 and 1215. These two measures will lift a significant recordkeeping burden from Arizona’s smallest businesses and safeguard legal proceedings from foreign entity involvement.”
Senate Bill 1069 sponsored by AZ Senator JD Mesnard (R-LD13) would, if enacted, increase the Business Personal Property Tax exemption to $500,000 per taxpayer, relieving the tax burden on small business owners and “reduce record-keeping and compliance costs enormously,” according to the NFIB.
The bill was passed by the Senate 17-9 with four Senators not voting and passed the House Ways and Means Committee on March 5th.
The second measure, Senate Bill 1215, proposed by AZ Senate President Pro Tempore Vince Leach would require the disclosure of third-parties sponsoring predatory lawsuits against Arizona small business owners and was passed by the House Judiciary Committee on March 26th and is pending consideration by the House Rules Committee. The bill is also supported by the Arizona Chamber of Commerce & Industry, the Arizona Manufacturers Council, the Arizona Lodging & Tourism Association, and the Arizona Trucking Association.
Courtney Coolidge, executive vice president of the Arizona Chamber of Commerce & Industry said in a February statement, “Third party litigation funding has grown to an estimated $15 billion industry in the U.S. Essentially what happened is funders pour money into lawsuits in exchange for the settlement. This is a simple transparency bill to ensure transparency in our courts, protect litigants and safeguard against foreign influence. This is not just an Arizona issue; several states have passed this with bipartisan support.”
Chief Economist Bill Dunkelberg explained the NFIB report’s findings saying, “Small business owners remained open to hire and grow their workforce in April. While the percent of open positions decreased a bit, Main Street firms are still struggling to find qualified applicants for their plentiful open positions.” Per the NFIB report, the percentage of unfilled job openings spiked in 2021-22 and have returned to the lowest level observed since January 2021.
Per the NFIB report, the percentage of unfilled job openings spiked in 2021-22 and have returned to the lowest level observed since January 2021 with the largest concentration of openings in construction, transportation, and manufacturing.
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 | Apr 1, 2025 | Economy, News
By Matthew Holloway |
Arizona State Senator JD Mesnard (R-LD13) is looking to reduce the size of government and the state income tax burden on Arizonans with dual bills: SB1318 and SCR1014. Both bills, which are moving through the House after passing the Senate in February, would require the Arizona Department of Revenue (ADOR) to reduce the individual income tax rate by 50% of the structural surplus for each Taxable Year (TY). If SB1318 passes the legisalture and is vetoed by Democrat Governor Katie Hobbs, SCR104 would put the issue on the Arizona ballot.
Both bills would require the Joint Legislative Budget Committee (JLBC) to determine the surplus for each Fiscal Year (FY), which would then be used to pro-actively reduce the income tax rate by 50% of the surplus amount, passing the tax savings onto the taxpayer more immediately than the issuance of a tax dividend.
Mesnard has a history of pursuing tax cuts. He was one of the lawmakers responsible for the historic 2021 tax reform that brought a flat income tax rate of 2.5% to individual taxpayers in Arizona. He also authored SB1783 the same year which lowered taxes on small businesses.
As reported by the AZ Capitol Times, Democrat Gov. Katie Hobbs expressed her opposition to SB1318, however should she veto it, the legislature would send SCR1014 to the Secretary of State, who would submit this proposition to the voters at the next election. Comparing the bill to the 1992 ‘TABOR’ or the Taxpayers Bill of Rights instituted by Colorado, Hobbs said, “I’m not interested in tying our hands like that. No. Not like TABOR. No. That’s not tax relief. That is tying the hands of future administrations.”
During hearings in February, Mesnard explained, “This is a proposal to essentially strike a balance. When you have a surplus, let’s split it between giving money to taxpayers and the other half allocating towards whatever you want.”
Democrat Sen. Brian Fernandez described the bill as an effort to “handcuff us so we can’t make decisions during a budget (negotiation).”
Mesnard responded, “So, ‘handcuff’; is an interesting choice of words. We can put parameters on ourselves. The voters put parameters on increasing taxes back in the 90s and also, more recently, when they’re on the ballot.”
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 | Mar 27, 2025 | Economy, News
By Matthew Holloway |
A bill to exempt retirement savings from the state income tax is being considered by the Arizona House of Representatives.
SB 1371, sponsored by Sen. JD Mesnard (LD-13), would exempt all retirement investment savings, including 401Ks, IRAs, Roth IRAs, and pensions from state income tax for distributions made after an individual is 59 and a half years old.
As explained by the Arizona Senate Republicans in a post to X, the bill “works to reduce financial burdens on Arizonans who are over the age of 59.5 by exempting retirement income from taxation.”
The bill passed the Arizona Senate on March 6th along party lines.
In a press release from the Arizona Senate Republicans, Senator Mesnard stated, “Arizonans deserve to keep more of what they earn so they can plan for retirement at an appropriate age. This bill allows retirees to enjoy their responsible savings while securing a comfortable and stable life in their golden years, free from unnecessary financial burdens.”
He continued, “In a world where the cost of living continues to rise, we need to prioritize the needs of our citizens, making sure they have what they need to succeed. I remain committed to fostering a pro-growth, taxpayer-friendly environment for all Arizonans and look forward to seeing this legislation advance to the governor.”
The bill had its second reading in the Arizona House of Representatives on March 17th and is pending reports from the Rules and Appropriations committees.
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.
