by AZ Free Enterprise Club | Oct 2, 2025 | Opinion
By the Arizona Free Enterprise Club |
Freedom-loving, car-driving residents of Arizona have long been fighting the constricting “road diets” local government officials, city planners, and corrupt bureaucrats have pushed for years. Proponents of these diets claim that by tearing out perfectly good vehicle lanes, everyone will somehow be safer, healthier, and probably save the planet too.
For those of us who live under the blazing Arizona sun, we recognize this as foolishness. Road diets have not been successful accomplishing any of the goals their proponents claim they will. Instead, the result is that the streets become more congested, you’re spending more time on the road, emergency vehicles have a harder time getting around, and everyone is mad.
Luckily the U.S. Department of Transportation under the leadership of President Trump has promised to stop funding this nonsense. After all, if local city councils are dumb enough to waste money ripping up perfectly good roads, they shouldn’t be able to use everyone else’s tax money to do it.
Of course, unsurprisingly, the residents of those very cities often don’t want their own tax money to go to ripping up the roads they rely upon. One such city is the tiny town of Page, Arizona, where in 2022, the city council approved the “Page Downtown Streetscape Master Plan” which calls for removing vehicle lanes along a 1.4 mile stretch of Lake Powell Boulevard in the heart of the downtown area. In the small northern town, residents stood up against these restrictive, dumb transportation ideas. Page is a community known for its tourism, with visitors bringing boats and heavy gear to explore Lake Powell. For locals, these roads are lifelines for tourism, commerce, and daily living, and Page residents aren’t willing to surrender any more of their precious infrastructure.
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by Matthew Holloway | Jun 25, 2025 | Economy, News
By Matthew Holloway |
Earlier this month, Goodyear’s City Council passed a massive $1.2 billion budget for 2026, unchanged from the tentative budget presented to the city in May. The budget is a shocking increase of over $304 million year-over-year or approximately 25.3%, without increasing its combined property tax rate or sales tax.
Goodyear Mayor Joe Pizzillo told reporters that the city was impacted by the loss of the city transaction privilege tax (TPT), eliminated as of Jan. 1st, 2025, through Republican tax reforms passed in the state legislature over the objections of Arizona Cities and Towns.
“A lot of cities here in the valley unfortunately had to raise their taxes to make up those $234 million…more than likely (which will) be doubling over the next five to 10 years,” Pizzillo said. “The city of Goodyear did not raise its sales tax or its combined property tax rate.”
Similar to property tax changes in Maricopa County, the city’s Truth in Taxation notice recorded an increase of $303,271. However, the overall property tax rate will not see an increase. This was accomplished by increasing the primary property tax rate, which is statutorily limited to an increase of 2%, while decreasing the secondary property tax keeping the rate effectively the same at $1.74 per $100 assessed property valuation.
In December 2024, Lee Grafstrom, a tax policy expert with Arizona Cities and Towns, told Fox10 that municipalities aren’t “cutting any of the services that citizens are requesting and requiring, so, we still have to do all the same amount of work. We just have this much less money to do it.”
“We have to find a way to either cut services or make up that shortfall,” he added. “This is a minor piece of a solution to a much larger problem, in terms of housing affordability.”
Finance Manager Ryan Bittle asked rhetorically, “‘Why is my property tax bill going up if the rate isn’t changed?’ (It) is one of the typical questions you might hear, and that’s simply because the value of your property is likely more this year than it was last year.”
The changes, according to Bittle, will bring more consistent revenues to Goodyear’s general fund. He explained that the secondary tax rate can only be used for servicing the city’s debts, while the primary property tax provides revenue for approximately 8% of the general fund on an ongoing basis.
In addition, Bittle explained that most of the property taxes paid by Goodyear property owners goes toward education, by a wide margin. “Most of the property taxes paid by citizens here in Goodyear falls outside of council’s decision-making authority,” Bittle said, noting that a full 66% of the collected taxes fund schools with just 15 cents on the dollar going to the city’s coffers.
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 | Jan 4, 2025 | Economy, News
By Matthew Holloway |
Arizona renters and landlords alike will get to breathe a sigh of relief this month when the Transaction Privilege Tax (TPT), applied by cities to rental payments every single month, is eliminated. While the cities that will no longer enjoy this source of tax revenue and lobbying groups like the League of Arizona Cities and Towns cry foul, local Republicans who pushed for the reform and the renters who pay it are celebrating.
Seventy-five cities across the state charge TPT on rentals ranging from 1.5% to 4%. Depending on rental rates, this could mean monthly savings of about $20-$50 per month based on estimates.
In a statement posted to X in November, Arizona Senate President Warren Petersen touted the tax elimination writing, “Its happening. Renters are about to get relief from the rental tax repeal passed by the Republican led legislature. The rental tax repeal was an important part of our majority plan to deliver inflation relief. To get the governors signature we had to delay the effective date to Jan 1 2025. Many people said the Dems would take the majority and put the tax back in place. Fortunately for renters we held the Senate and the House. Here is an email from a property manager letting the tenants know their rent will be going down.”
Jake Beeson of Beehive Property Management told AZFamily, “It’s going to mean quite a bit for some tenants. We work with the Community Housing Partnership as one of our clients, which has low-income housing, and those rents are between $900 and 1,000 a month. So for a low-income family to have a 2% discount every month doesn’t sound like a lot, but if you’re paying $900 in rent every month, that’s $18. $18 is a whole month of discounted lunches at your kid’s school.”
The outlet noted that the rates in the valley can range from 2% in Mesa to 2.3% in Phoenix or 3% in Cave Creek. Some cities charge as much as 4%.
But not everyone sees the rental tax relief as a positive. Lee Grafstrom, a tax policy expert with the League of Arizona Cities and Towns told Fox10, “You’re not cutting any of the services that citizens are requesting and requiring, so, we still have to do all the same amount of work. We just have this much less money to do it.”
He stressed that cities could find themselves in budget shortfalls, expecting a combined loss of $230 million in tax revenue annually.
“We have to find a way to either cut services or make up that shortfall,” Grafstrom told Fox10. “This is a minor piece of a solution to a much larger problem, in terms of housing affordability.”
The League said in a statement, “Cities and towns across the state are facing a loss of over $230 million in their budgets, which support essential services like police, fire, parks, and more. Without state funding to make up for these losses, local governments will be forced to make tough decisions to balance their budgets, such as cutting jobs and services or raising local taxes—both unpopular choices. Local leaders are working to address these challenges before the repeal takes effect in January.”
The additional savings could see renters parlay the funds into more goods and services to offset inflation, which still tolls heavily on Arizona residents.
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 Terri Jo Neff | Jan 20, 2022 | News
By Terri Jo Neff |
A new report released by the taxpayer-watchdog group Goldwater Institute is calling on the Arizona Legislature to address the use of public money by the League of Arizona Cities and Towns for purposes which go against the public’s interest.
“Taxpayer-Funded League Lobbies Against Taxpayer Interests,” the report by Jon Riches and Jenna Bentley, details the use of taxpayer funds by the League of Arizona Cities and Towns in ways which represent the interests of public officials and government bureaucrats rather than the interests of the taxpaying public.
“The League uses taxpayer dollars to help fund its political efforts, frequently lobbying in favor of or against proposed legislation at the Arizona Legislature,” according to Riches, the Goldwater Institute Director of National Litigation, and Bentley, the Goldwater Institute Director of Government Affairs. “While the League supports and opposes bills sponsored by members of both political parties, its agenda is decidedly anti-freedom, pro-government, and partisan.”
The situation can easily be addressed if state lawmakers approve three reforms, the report states.
“It is time to protect taxpayers by prohibiting taxpayer-funded lobbying activities while also increasing transparency and accountability when local governments advocate at the legislature through membership organization,” Riches and Bentley assert.
To start, the report recommends extending the current ban enacted in 2017 on using taxpayer funds to pay for lobbyists who represent the state government. The ban should also apply to local government governments and the League, Riches and Bentley propose.
“Cities and towns could still voluntarily join together to discuss issues of mutual concern—but do so without expending taxpayer resources on lobbying,” they say.
Then, there needs to be state legislation passed to address the disproportionate rate of dues paid to the League by smaller municipalities. This occurs because overall dues are capped for Arizona’s larger cities, resulting in a higher per capita rate for citizens of smaller communities.
“Residents of small cities and towns should not bear a disproportionate burden in financing the League and its activities,” the report states. “After all, larger cities receive the same services from the League that smaller cities do.”
The third recommendation put forth by Riches and Bentley calls on lawmakers to ensure better transparency by the League, which is a nonprofit organization comprised exclusively of local governments. In fact, more than a dozen League employees are currently active in the Arizona State Retirement System (ASRS) and several retired League employees receive ASRS pensions.
“League employees themselves are technically private employees, but in many ways they enjoy the benefits of government employment,” the report notes. “Given that the League’s membership is comprised solely of public bodies and its employees receive government perks, one would expect the League to be subject to the same transparency and accountability measures that apply to other public entities.”
These reforms, according to Riches and Bentley, would go a long way toward ensuring tax dollars are used to advance the public’s business, not to amplify the voice of special interest lobbyists.
“The Arizona Legislature can protect municipal taxpayers from the abuses that occur when local governments use taxpayer resources to lobby state government and blur the line between public and private activities,” the report recommends. “It is time to protect taxpayers by prohibiting taxpayer-funded lobbying activities while also increasing transparency and accountability when local governments advocate at the legislature through membership organizations.”
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