One of the final pieces of the 2023 Arizona Legislative Session has been put into place.
On Tuesday, Governor Katie Hobbs signed SB 1131, which eliminates the rental tax for Arizona tenants.
FOR IMMEDIATE RELEASE: Senate Republicans Deliver Inflation Relief to Struggling Arizonans by Prohibiting Sales Tax on Rent ⬇️ pic.twitter.com/8tGzEhrJxj
According to Arizona Senate Republicans, “there are approximately 70 municipalities within our state charging this tax, while cities and towns continue to collect record revenues. From fiscal years 2019 to 2023, state-shared revenues from both sales and income taxes combined grew $733 million, or 59%. This increase is on top of any sales taxes or property taxes individually levied by each city. Between FY 2024 and FY 2025, those shared revenues are expected to grow by an additional $389 million.”
The Senate’s President, Warren Petersen, issued the following statement in conjunction with the announcement: “Charging a rental tax is bad tax policy. In fact, Arizona is one of only two states in the nation currently allowing this. While our first attempt at eliminating the tax passed out of the Legislature with solely Republican support and was eventually vetoed by the Governor, we’re grateful our Democrat colleagues came to the table with us and realized the real tangible relief this reform will provide.”
Senate Majority Whip Sine Kerr also released a statement explaining the need for the bill.
“Rental prices aren’t going down anytime soon, and Arizona tenants are agonizing over just how much more expensive it is now to rent an apartment or house than ever before. For Metro Phoenix, June of this year saw the second-highest monthly total of evictions since the 2008 Great Recession. According to Maricopa County records, landlords filed to evict nearly 7000 times last month,” said Senator Kerr. “We needed to act promptly. This bill will provide some help, and I’m proud the Majority Caucus spearheaded this change in tax policy.”
The Republicans’ press release noted that the new policy will “take effect on January 1, 2025…at the request of Democrats (to) allow cities and towns the leeway they desire to adapt to this tax reform.”
As Petersen referenced, the governor vetoed an earlier version of the rental tax prohibition back in February. Hobbs gave two reasons for her action, stating, “First this bill lacks any enforceable mechanism to ensure relief will be provided to renters. As noted by the legislature’s own attorney, provisions in the bill that purport to require that tax savings be passed on to renters face challenges under both the state and federal constitutions. If we are going to promise relief to renters, it’s important that we are able to ensure they actually receive it.”
The League of Arizona Cities & Towns – as well as several cities and towns across the state – opposed the updated bill, which was eventually signed by Hobbs, as it progressed through the state legislature. The Senate first passed the bill on March 2, then the House on May 15. The Senate then concurred with the amended proposal on June 13. SB 1131 was not transmitted to Governor Hobbs until July 31 – the same day that the Legislature approved the negotiated Prop 400 plan.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Reaction was mixed to the news that the Arizona Legislature passed a Prop 400 compromise on Monday, after an agreement was forged with the Governor’s Office.
Republican Senate President Warren Petersen claimed victory after his chamber gave the proposal the green light, calling it “the most conservative transportation plan in our state’s history.” Petersen added, “The guardrails, taxpayer protections and funding allocations in the text of this bill reflect the priorities of voters, to reinvest their tax dollars in the transportation modes they use most.”
Democrat Governor Katie Hobbs was diplomatic in her statement, saying, “Today, bipartisan leaders invested in the future of Arizona families, businesses, and communities. The passage of the Prop 400 ballot measure will secure the economic future of our state and create hundreds of thousands of good-paying jobs for Arizonans. I am glad we were able to put politics aside and do what is right for Arizona.”
Today, bipartisan leaders invested in the future of Arizona families, businesses, and communities. The passage of the Prop 400 ballot measure will secure the economic future of our state and create hundreds of thousands of good-paying jobs for Arizonans. I am glad we were able to…
Some legislative Democrats took the legislation’s approval to point political fingers at their Republican counterparts. Senate Democratic Leader Mitzi Epstein wrote, “As is customary, Republicans have waited until the very last minute to pass widely popular legislation that invests in the daily lives of Arizonans….Our state should not have had to wait until July 31st to see this measure, which has had legislative support since the start of session, get sent to the ballot. However, with the support of Arizonans cities and towns, I am proud to join my Democratic colleagues in delivering the key votes needed to send the extension of the regional transportation tax back to the voters of Maricopa County.”
PRESS RELEASE: Democrats Deliver Key Votes to Ensure the Extension of the Transportation Tax, Prop400E, Hits the Ballot pic.twitter.com/vDsxsvEzHm
— Arizona Senate Democrats (@AZSenateDems) August 1, 2023
Members of the Arizona Freedom Caucus were adamantly opposed to the bill since the weekend, when they appeared to have read a draft of the legislation. After Prop 400 passed, the Freedom Caucus tweeted, “Legislative conservatives near unanimously opposed this horrible bill. Conservative watchdog groups unanimously opposed it. The bill may have been better than the communists at @MAGregion’s horrific plan, but that’s a ludicrously low bar for success. This bill was antithetical to conservatism.”
Legislative conservatives near unanimously opposed this horrible bill.
Conservative watchdog groups unanimously opposed it.
The bill may have been better than the communists at @MAGregion’s horrific plan, but that’s a ludicrously low bar for success.
— Arizona Freedom Caucus (@AZFreedomCaucus) August 1, 2023
Freshman Republican Representative Austin Smith, who has become one of the leading voices in the Arizona Freedom Caucus this legislative session, was one of the most-outspoken members against the bill since the weekend. He explained his vote on Twitter, posting, “I voted NO on the prop 400 transporation excise tax for Maricopa County. Taxpayer dollars are not ours to dish out haphazardly – especially to the tune of 20 BILLION dollars with potential consequences that ruin valley transportation.”
I voted NO on the prop 400 transportation excise tax for Maricopa County. Taxpayer dollars are not ours to dish out haphazardly – especially to the tune of 20 BILLION dollars with potential consequences that ruin valley transportation. pic.twitter.com/PRCUA35rwC
Some legislative Republicans, including Representative Jacqueline Parker, were already thinking about messaging against the ballot measure in hopes that voters could stop the plan from becoming finalized. Parker tweeted, “Now it’s up to the voters in Maricopa county to read the 47 page bill & see if it’s worth $20 Billion. I recommend looking at provisions on pages: 8, 15, 16, 18, 21, 22, 34, & 35, which absolutely allow plenty of leeway for cities to implement their road diet, & transit expansion.”
Now it’s up to the voters in Maricopa county to read the 47 page bill & see if it’s worth $20 Billion. I recommend looking at provisions on pages: 8, 15, 16, 18, 21, 22, 34, & 35, which absolutely allow plenty of leeway for cities to implement their road diet, & transit expansion https://t.co/HpsNrJK5bZ
— Rep. Jacqueline Parker (@electjacqparker) July 31, 2023
The breakthrough on the Prop 400 compromise took place after Governor Hobbs vetoed a Republican proposal in June. At that time, Hobbs stated, “I just vetoed the partisan Prop 400 bill that fails to adequately support Arizona’s economic growth and does nothing to attract new business or create good-paying jobs.”
In May, the governor created unrest over ongoing negotiations, allegedly sending out a tweet that highlighted her fight with Republicans at the Legislature at the same time she was meeting with Senate President Warren Petersen.
This is a bizarre tweet. We had just started a meeting with the governor about prop 400 while this tweet was sent out. Our plan has more roads, less congestion and is a better value to the taxpayer. https://t.co/cfBF0GGM9v
Petersen, one of the most conservative members in the state legislature, championed the importance of the bill, asserting that officials had “secured a good, responsible product for the citizens of Arizona to consider in 2024, giving voters the option to enhance critical infrastructure that our entire state relies upon.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Arizona’s Democrat Governor and Republican Superintendent of Public Instruction continue to trade political volleys over the state’s Empowerment Scholarship Account (ESA) program.
Last week, Governor Katie Hobbs transmitted a communication to the state’s schools chief, Tom Horne, “requesting detailed plans for protecting the personal data of Arizona students and families (after) the company responsible for the financial administration of the ESA program, ClassWallet, experienced a data breach that prompted the activation of the state Incident Response Team at the Arizona Department of Homeland Security. The Governor’s Office then tied the recent departure of “two high ranking ESA officials” to the issue, writing that in the aftermath of their sudden and unexpected resignations, there were now “concerns and questions about the administration of the ESA voucher program and the protection of student data.”
Arizona students and families deserve to know that proper measures are in place to protect their personal information. That's why I sent a letter to Superintendent Horne asking for answers regarding the recent ClassWallet information breach, and plans to protect Arizonans'… pic.twitter.com/PDTum1aNdy
— Governor Katie Hobbs (@GovernorHobbs) July 28, 2023
Hobbs issued a statement, saying, “It is my responsibility to ensure the safety and security of our state, our agencies, and our people. Arizona students and families deserve to know that proper measures are in place to protect their personal information.”
Christine Accurso, one of the former ESA officials referenced by Hobbs, quickly responded on Twitter, stating, “Governor Hobbs the same type of breach has happened on this platform in the past, even as late as last December. This has nothing to do with the resignations. You should review all of the investigations and contact the contract holder, the State Treasurer’s office.”
@GovernorHobbs The same type of breach has happened on this platform in the past, even as late as last December. This has nothing to do with the resignations. You should review all of the investigations and contact the contract holder, the State Treasurer 's office.@rizzole9https://t.co/3X2PtZhtyx
— Christine Accurso (@ArizonaCatholic) July 28, 2023
Horne, too, wasted little time in getting back to Hobbs. Mere hours after the governor sent her letter, the Arizona Department of Education first publicized a comment from ClassWallet’s CEO Jamie Rosenburg, who said, “The problem has been solved. It was a permission setting error. Once discovered, we took immediate action and corrected the permission setting. Additionally, we performed a database search and concluded no other users were affected. Therefore, this is an isolated incident to a single user.”
Then, less than two hours after the ClassWallet response, Horne released a letter he had forwarded to the governor with his responses to her queries. In that letter, Horne first addressed Hobbs’ connection of the breach with the departure of two of his aides, writing, “The first point to make is that the decision of Christine Accurso and her assistant, who came on to straighten out the mess caused by the previous administration, and when that was accomplished, left to go on to other things, has absolutely nothing to do with any reported data breach.”
Answering Hobbs’ question of “what steps is your administration taking to address any potential violations of State statutes relating to student data privacy,” Horne said, “The Department of Homeland Security in your own office is conducting an investigation. They met with officials in our office. Since the department of homeland security is part of your office, we would have thought you would have checked with them before writing your letter that is full of wild exaggerations.”
Arizona Treasurer Kimberly Yee also weighed in on the governor’s letter, informing constituents of the steps her office had taken once she learned of the incident. Yee wrote, “We have received verbal confirmation from Homeland Security that the breach did not originate from the vendor. We have also been provided assurances from Homeland Security that the vendor and my office have responded appropriately to the incident. Based on information received, we are not aware of any existing data breach and have confidence that the ESA platform is secure.”
Arizona Treasurer Kimberly Yee issued the following statement on the ESA cybersecurity incident that occurred earlier this month. pic.twitter.com/PJiipexjsN
— Office of the Arizona State Treasurer (@AZTreasury) July 28, 2023
Christine Jones, the Founder of Bigfork Tech, shared her insights into the matter, tweeting, “1. This isn’t a data breach. More like a data leak/unintentional disclosure. 2. Why is Gov involved? Superintendent is elected position-doesn’t report to Gov. 3. Former AZ AG Horne knows how to address this. 4. Kimberly Yee handles admin and oversight of ClassWallet.”
1. This isn’t a data breach. More like a data leak/unintentional disclosure. 2. Why is Gov involved? Superintendent is elected position-doesn’t report to Gov. 3. Former AZ AG Horne knows how to address this. 4. @KimberlyYeeAZ handles admin and oversight of ClassWallet.#smhhttps://t.co/UZ3jur1jme
The partner to Gov. Katie Hobbs’ chief campaign advisor now works as a lobbyist for the Saudi Arabian company targeted for taking the state’s water supply.
The partner, Chad Guzmán, co-manages the lobbying firm Fillmore Strategy with Hobbs’ senior campaign advisor, Joe Wolf. The Saudi Arabian company tapping into Arizona’s dwindling water supply, Fondomonte, enlisted Guzmán’s firm, Signal Peak Consulting, about two months ago according to a Fondomonte spokesperson. However, Fondomonte didn’t register their hire of Guzmán with the secretary of state’s office until Wednesday. Guzmán is the sole member of his firm, which was registered in January. Fillmore Strategy and Signal Peak Consulting have the same address listed on their registration with the Arizona Corporation Commission.
Guzmán formerly worked as a lobbyist for former Attorney General Tom Horne for one year in 2011, Arizona Public Services (APS) and Pinnacle West Capital Corporation from 2013 to 2020, and EPCOR Water from 2020 to 2023.
Wolf told The Arizona Republic that he no longer receives payments from Hobbs’ campaign, and that he has no business dealings with Fondomonte.
“Given I’ve never had a contract, been paid by Fondomonte or provided consultation, I’d say this is a nothingburger,” said Wolf. “Chad’s extensive experience over the years makes him a valuable asset to any client and he maintains a separate and solely owned consulting practice, of which I am not involved.”
In April, Attorney General Kris Mayes revoked Fondomonte’s drill permits for two deep-water wells. Fondomonte received permission under former governor, Doug Ducey, to use Arizona water for growing alfalfa to feed cattle overseas.
Just 8 months ago, Arizona state agencies approved new deep-water wells in La Paz County for a Saudi-owned company to pump thousands of gallons of water per-minute.
I can tell you that today – just before Earth Day – that's not happening. Those drill permits have been revoked.
— AZ Attorney General Kris Mayes (@AZAGMayes) April 21, 2023
Fondomonte originally grew its alfalfa in Saudi Arabia, but moved their operations due to a long-term drought similar to the one plaguing Arizona.
Prior to Guzmán, Fondomonte hired Rose Law Group and former Republican congressman John Shadegg: six months earlier on the same day in January.
Hobbs’ office wouldn’t comment on Guzmán’s hire or proximity to her campaign advisor, Wolf.
Wolf came into the spotlight after Project Veritasdocumented him driving around with an AR-15 to campaign events. Wolf said he traveled with an AR-15 because it was “easier to fire than a handgun.” In a separate clip, Wolf stated that Hobbs would do everything in her power to issue an assault weapons ban.
“There’s nothing she could do about it, at least immediately, right? Except advocating for it publicly, which is really more impactful once you’re governor,” said Wolf. “This state is unfortunately crazy in love with their guns.”
Wolf again came into the spotlight for retrieving Hobbs last October, who fled and hid in a restaurant’s bathroom after reporters attempted to ask her questions about her aversion to discussing policy.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
Two Arizona Republican Senators are calling for the state’s governor and attorney general to take action after a patient was recently released from the Arizona State Hospital (ASH).
Late last week, Senators Anthony Kern and T.J. Shope demanded that Attorney General Kris Mayes and Governor Katie Hobbs “protect the citizens of Arizona by immediately rescinding the release of a seriously mentally-ill patient who was housed at the ASH after being found incompetent to stand trial in the brutal murder of his own mother and seven-year-old niece.”
FOR IMMEDIATE RELEASE: Republican Senators Call on Attorney General Mayes, Governor Hobbs to Immediately Address Imminent Public Safety Threat ⬇️ @anthonykernAZ@TJShopepic.twitter.com/NyV96oMtau
Grigg tweeted that “the public is not informed where he (Rodney Aviles) was released to or what part of the city,” and that behavioral facilities had repeatedly “denied to accept him.” She reported that the family of his alleged victims “told ABC15 in 1999 that the murders happened just hours after he was released then from a psychiatric facility.”
The Senate Republicans’ release revealed that in February, “Maricopa County Attorney Rachel Mitchell sent a letter to Mayes saying she has serious community safety concerns and believes Aviles poses an ongoing threat to his family and the community at large. The report went on to mention a 2021 court filing objecting to Aviles’ release, citing a doctor’s statements that Aviles had no insight into the fact of his mental illness, Aviles has insisted he does not need medication, but that Aviles is expected to need inpatient care for the duration of his life.”
Kern released a statement about the news, saying, “We have a Governor issuing numerous unconstitutional executive orders left and right, allowing taxpayer-funded sex-change surgeries, stripping county attorneys of their prosecutorial powers, protecting a Death Row inmate from execution, acting as a travel agency in transporting illegal immigrants to their preferred destinations, and even focusing on hairstyles of state employees. Now, we have an individual who is clearly an imminent danger to society and being immersed back into the community because of the incompetence of the Hobbs’ Administration. Unfortunately, she and Mayes are nowhere to be found when public safety is at risk. When Mayes should be defending our laws and prosecuting the most vile criminals, she’s instead advocating for lawlessness. The citizens of this great state and the victims who have been through unthinkable suffering deserve immediate action from these so-called ‘elected officials.’ Their priorities are completely tone-deaf and out of touch with the needs of our state. Any fallout or further victimization from the release of Aviles will strictly be the result of inaction from Hobbs and Mayes.”
Protecting the family and the public at large should be a priority for Hobbs and Mayes….it isn't (see below): https://t.co/LpVz2pJBAW
Senator Shope added, “If this man is unfit for trial after murdering his family, he’s unfit to be on the streets with the general public and must stay under proper care and supervision. As chairman of the Senate Committee on Health & Human Services, I’ll be working with my colleagues to bring truly independent oversight of the Arizona State Hospital. This is clearly necessary to keep patients and citizens safe from the winds of politics.”
This is truly asinine. Where are @GovernorHobbs & @arizonaago@krismayes on this? If he’s unfit for trial after murdering his family, he’s unfit to be on the streets with the rest of us and must stay under proper care & supervision.
After the Senators issued their press release, Grigg reported that Governor Hobbs’ Office informed her that the governor “is fully committed to keeping Arizonans safe and is finding solutions to improve ASH operations and ensuring public safety. Additionally, she recognizes ASH’s legal obligations and expects the State Hospital to follow any applicable laws or court orders.”
Attorney General Mayes’ Office also told Grigg, “the Superior Court mandated the release of this individual. But given that our office serves as legal counsel for ADHS and ASH, we have no additional comments to make.”
Grigg wrote that she “tried to get the court records of his release but the filing is confidential.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
