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.
by Daniel Stefanski | Feb 2, 2025 | News
By Daniel Stefanski |
An Arizona lawmaker is working on legislation to protect his constituents from government overreach.
This week, State Senator J.D. Mesnard introduced SCR 1009 to “remove an exception from the Arizona constitution that allows government bureaucrats to assess uncapped fees without first getting a two-thirds vote from the legislature.” If passed by both chambers of the Arizona Legislature, the measure would be referred to a future statewide ballot for voter approval.
According to the press release issued by Mesnard, a Republican, SCR 1009 was deemed necessary because of a loophole that was uncovered from a previously approved voter initiative, Proposition 108, back in 1992. Prop 108 mandated a two-thirds vote of the Arizona Legislature to increase taxes, fees, and assessments on the state’s taxpayers. However, as was discovered in later years, there was an exception that was granted for fees that would be assessed by state officers or agencies. That loophole, per Mesnard, has led to hundreds of millions of dollars of fees for Arizonans, leading to the need for a measure like SCR 1009 to correct the problem and close the loophole that was being exploited by rogue bureaucrats.
In a statement announcing the introduction of the ballot measure, Senator Mesnard said, “The people have entrusted their elected officials with the power to make policies, including assessing any taxes or fees, not delegate that responsibility to unelected government officials. When Arizona voters approved Prop. 108, their intentions were clear; they wanted to set a higher threshold when imposing a greater financial burden on the people, not make it easier to do so. The current law is highly attractive to those who wish to game the system and impose fees that they know will not receive a supermajority vote from the legislature. This bill is a significant step towards protecting Arizona taxpayers from unchecked financial burdens while ensuring the legislature cannot shirk its sacred duty.”
The release from the longtime east valley legislator added that “by having a proper check and balance in place, the ballot referral will ensure that the state government is not permitted to make major financial decisions without first getting approval of two-thirds of the legislature, as the people intended. This measure will help restore fiscal accountability, halt government overreach, and protect taxpayers from unauthorized financial obligations.”
SCR 1009 will first be considered in the Arizona Senate. If it is successful in this chamber, the measure will move to the Arizona House of Representatives for consideration. If both the state Senate and House approve of this measure, SCR 1009 will be transmitted to the Arizona Secretary of State’s Office for inclusion on the 2026 November General Election ballot, bypassing the Governor’s Office entirely.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Jan 31, 2025 | Education, News
By Daniel Stefanski |
School funding is a hot topic at the Arizona Legislature as the 57th Regular Session prepares to launch into its second month.
Arizona lawmakers and the Governor’s Office are wrestling over the looming expiration date for Proposition 123, which has helped fund the state’s K-12 schools since it was established under the previous Ducey administration.
One legislator in particular, Senator J.D. Mesnard, noted this deadline in the weekly newsletter published by Arizona Senate Republicans, saying, “With a new session comes a new opportunity to work on bills that may not have reached the finish line in the year prior. As such, I’m again working on a Proposition 123 extension plan to send to the ballot. This measure was first approved by voters in 2016. It allows a larger percentage from the state land trust to be distributed to our K-12 schools. Prop. 123 is set to expire this summer. With this in mind, Republicans backfilled the money allocated each year to K-12 schools within the last state budget, nearly $300 million, so there are no disruptions to this funding stream.”
Mesnard added, “The new Prop. 123 I’m proposing would be additional dollars on top of what we backfilled. My colleagues and I would like this money to go directly to teacher pay raises, with a goal of each educator receiving an additional $4,000 annually. I will keep you posted on the progress of Proposition 123 as well as other commonsense legislation that will hopefully receive the Governor’s signature.”
In Governor Katie Hobbs’ recent State of the State address, she touched on the vital importance of Prop 123, saying, “We must address the impending expiration of Prop 123, which provides critical funding for public schools and teachers. Renewing it is essential. If we fail to act, we are throwing away an opportunity to fund teacher pay raises and give Arizona’s children the opportunity they deserve – all without raising taxes on a single Arizonan. When Prop 123 originally passed, it was a bipartisan success and proved that Republicans and Democrats could come together and do the right thing for our students, teachers, and parents. So let’s put our kids first again and provide the certainty they and our schools need. Let’s address the Aggregate Expenditure Limit to make sure schools stay open. Let’s pass a Prop 123 extension to fund our schools without raising taxes.”
Following the Governor’s speech to both chambers of the Arizona Legislature, Senate President Pro Tempore T.J. Shope offered one of the Republican responses to her proposal. He said, “We will take action to equip our K-12 schools with quality educators at the front of every classroom by using a Proposition 123 renewal to increase teacher pay above the national average.”
Arizona Superintendent of Public Instruction Tom Horne has also weighed in on the Prop 123 debate. Earlier this month, he posted, “We must renew Prop 123 and increase the income from the land trust, which is overflowing with money, to increase teacher salaries.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Jan 5, 2025 | Economy, News
By Daniel Stefanski |
Arizona Republicans highlighted their state’s low tax rate after a recent signing of a baseball star with the hometown team.
Late last month, Corbin Burnes, a free agent pitching star, decided to sign with the Arizona Diamondbacks, shocking most onlookers, who had predicted that he would likely end up with another Major League Baseball suiter.
One report shared that Burnes made his decision based on Arizona’s lower tax rate. Burnes had been wooed by the Toronto Blue Jays and San Francisco Giants – two jurisdictions with significantly higher taxes than the Grand Canyon State.
Arizona Senate President Warren Petersen said, “Sports players choose AZ over other states because our taxes are lower. Businesses do the same.”
Former Arizona Governor Doug Ducey added, “I’ll be looking forward to watching Corbin Burnes in a Dbacks jersey next year – and very glad to see that Arizona’s lowest flat tax in the nation is what brought him to AZ! Sorry Gavin Newsom [&] Justin Trudeau!”
Burnes had been reportedly offered more money by the aforementioned teams before deciding to ink a deal with the Arizona Diamondbacks.
According to a post on X, the top tax rate in California is 14.4%, and the top federal and provincial tax rate in Toronto, Ontario is 53.53%. Arizona’s tax rate is 2.5% in comparison.
Arizona owes its low tax rate to the work of Governor Ducey and legislative Republicans, who enacted the transformational tax bracket in 2021.
Two staunch free-market advocates, Tim Phillips (President of Americans for Prosperity) and Grover Norquist (President of Americans for Tax Reform), wrote a piece in Newsweek, praising the accomplished feat of the Arizona Legislature, spearheaded by State Senator J.D. Mesnard and Ducey. They stated, “Arizona, on the other hand, provides a good example: lower the tax rates to let people keep more of what they earn and invest in what they care about most. Limit government spending to grow no faster than the incomes of the citizens who pay the taxes. Create a magnet for job-creating investment and hardworking Americans who simply wish to be left alone to work hard, take care of their families and support their communities.”
Phillips and Norquist added, “The Arizona reform is a positive model and one that should be followed by other states and the federal government.”
When the Arizona Supreme Court gave the green light for these tax reforms to go into effect, Arizona Free Enterprise President Scot Mussi said, “Today’s decision from the Arizona Supreme Court is a big win for taxpayers in our state. The legislature passed historic tax cuts last year that benefit all Arizona taxpayers. It’s time for Invest in Arizona and out-of-state special interest groups to accept this reality and stop making a farce of the referendum process.”
Mesnard touted the progress of his historic legislation in a campaign newsletter in January 2023, saying, “The historic tax reform that I championed in 2021 is now in effect for income earned this year – a full year ahead of schedule thanks to strong government revenues. Valued at more than $2 billion, this reform reduced individual tax rates to 2.5%, resulting in a tax cut for every single Arizona family and Arizona having the lowest flat tax in the nation.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Nov 22, 2024 | News
By Daniel Stefanski |
Arizona Republican officials have met with the State of Florida’s chief of elections to ascertain necessary changes to their own systems of counting and reporting votes.
On Tuesday, Arizona Senate President Warren Petersen led a call with the Florida Secretary of State, Cord Byrd, for the purpose of gleaning information about the Sunshine State’s efficient ballot tabulation for Election Day.
In a post on his X account, Petersen marked the meeting, saying, “Just finished a great meeting with Florida Secretary of State Cord Byrd and his staff discussing what they do to get election results quickly. As expected a big difference is that we do not have a cutoff for early ballot drop-offs at polling places like they do. But we also learned of other ways to be more efficient. I look forward to passing legislation so that AZ will have election results night of.”
Petersen also thanked the Republicans who joined him on the call, including Representatives Steve Montenegro, John Gillette, Senators Shawna Bolick, John Kavanagh, JD Mesnard, incoming Senator Mark Finchem, Maricopa County Supervisor Thomas Galvin, incoming Supervisor Debbie Lesko, and Republican Party of Arizona Chair Gina Swoboda.
In an exclusive comment to AZ Free News, Petersen shared more of his thoughts about the meeting, stating, “What I came away with is that the biggest thing we can do to speed up results, that would be the easiest to implement, would be having a cutoff of 7 p.m. on the Friday before the election to drop off ballots.”
Secretary Byrd acknowledged the meeting on social media, posting, “Yesterday, I and my team at the Florida Secretary of State spoke with legislative leaders from Arizona including the Senate President and Speaker of the House about how Florida’s election code allows for the timely and accurate counting of ballots. We are happy to share the Florida blueprint.”
Senator Bolick, who was also on the call with the Florida Secretary of State, told AZ Free News that, “In the past, I have worked with folks who helped fix the Florida issues. We also have tried different solutions over the past few years only for bills to be vetoed or killed by fellow GOP legislators because they didn’t sponsor the bill. I believe late earlies are the biggest hinderance in getting results on election night. Our voters are tired of being the laughingstock of the country, especially voters in Maricopa County. We shouldn’t be waiting two weeks for results. Early voting ends the Friday before the election as should mail-in ballots.”
Bolick added, “Florida’s voters know they can’t walk their vote by mail ballot into a polling place on election day. They can only walk it into their supervisor’s (aka our recorder’s) office on election day. Voters I have spoken to would be okay modifying these changes if it means getting results on races on election night. I am certain the legislature would be interested in appropriating funds to ensure timely, accurate results.”
State Senator Wendy Rogers also indicated her presence on the call and cheered the opportunity “to learn from Florida’s successes!”
Lesko made sure to note the call on her X account, writing, “Today, I was privileged to join AZ Senate President Warren Petersen, House Speaker Steve Montenegro, Supervisor Thomas Galvin, and several state legislators, on a call with Florida Secretary of State Cord Byrd to discuss their policies for elections that have made Florida into an admirable model. Republicans and Democrats must unite to make necessary reforms to Arizona elections. I look forward to working with legislators to accomplish this worthy goal on the Maricopa County Board of Supervisors.”
Republicans in the Arizona Legislature have vowed to make these reforms their top priority in the next legislative session, which starts in January. However, they are expected to meet resistance from Democrats, especially Governor Katie Hobbs, who has vetoed other commonsense elections bills in her previous two years in office.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
