by AZ Free Enterprise Club | Feb 26, 2026 | Opinion
By the Arizona Free Enterprise Club |
It’s not an accident that the top issue talked about by politicians these days is affordability. Over the last 5 years the cost of pretty much everything has gone through the roof, largely caused by the trillions in reckless spending by Joe Biden and the Democrats in Washington.
Taming inflation must remain our top economic priority, and the good news is that Arizona Republicans are taking meaningful steps to bring costs down. After adopting a 2.5% flat income tax under Governor Doug Ducey in 2022, state lawmakers have fought to slash grocery taxes, residential rental taxes and eliminate regulations that are driving up the cost of energy and housing.
Yet while the Republican controlled legislature is doing everything it can to make sure hardworking taxpayers get to keep more of their hard-earned dollars, municipalities throughout Arizona are passing an avalanche of tax and fee increases that are costing taxpayers hundreds of millions of dollars every year…
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by Jonathan Eberle | Jul 24, 2025 | Economy, News
By Jonathan Eberle |
Republican leaders in the Arizona Legislature are highlighting a string of tax cuts they say are aimed at providing relief to working families, renters, and small business owners across the state. Over the past three years, lawmakers have passed three separate tax measures that they argue will reduce financial burdens for everyday Arizonans.
The most recent change, Senate Bill 1069, was approved last month and is set to take effect on January 1, 2026. The legislation raises Arizona’s business personal property tax exemption to $500,000, a move Republican lawmakers say will particularly benefit small businesses by cutting down on tax bills for equipment and other property used in daily operations.
In 2023, the legislature also passed Senate Bill 1184, which bans municipal excise taxes on residential leases starting in 2025. Supporters say the measure will help renters by prohibiting local governments from adding extra taxes to apartment and home leases, a cost often passed directly to tenants.
That same year, lawmakers enacted the Arizona Families Tax Rebate through Senate Bill 1734. The rebate provided one-time direct payments to Arizona households: up to $750 for single filers and up to $1,500 for joint filers. Families received $250 per child under 17, while older dependents qualified for $100 each.
Senate President Warren Petersen praised the tax cuts as part of a broader conservative approach to governance.
“At a time when families are feeling squeezed, we’re doing what government should—getting out of the way and letting our hardworking taxpayers keep more of what they earn,” Petersen said in a statement. “These tax cuts aren’t handouts. They’re the result of smart, conservative leadership that puts everyday Arizonans first.”
Petersen also framed the tax policy as aligned with President Donald Trump’s “America First” agenda, signaling that Arizona Republicans see these moves as part of a larger national effort to spur growth and reduce government intervention.
Democratic lawmakers, meanwhile, have raised concerns in past sessions that cutting taxes could limit state and local governments’ ability to fund essential services, including education and infrastructure. However, GOP leaders maintain that the state’s healthy revenues give them room to ease tax burdens without sacrificing core programs.
With these three measures now on the books, Arizona Republicans are positioning themselves as champions of taxpayer relief ahead of the 2026 legislative session and upcoming election cycles.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Feb 18, 2023 | News
By Daniel Stefanski |
Over the past two years, Arizonans have experienced higher inflation than other parts of the country, and their state legislators are working on a solution to combat these higher prices.
This week, Republican legislators held a press conference at the Arizona State Capitol Rose Garden in Phoenix, promoting their efforts to eliminate the rental tax to help constituents struggling with high inflation.
Representative Neal Carter introduced HB 2067 in the House, and Senator Steve Kaiser introduced SB 1184 in the Senate. The bills would prohibit “municipalities from levying municipal tax on the business of renting or leasing real property for residential purposes effective January 1, 2024,” according to the overview provided by the Arizona House of Representatives.
SB 1184 was co-sponsored by six Senators (Ken Bennett, Jake Hoffman, Warren Petersen, Wendy Rogers, Janae Shamp, and Justine Wadsack). HB 2067 was co-sponsored by twenty Representatives (Leo Biasiucci, Selina Bliss, Joseph Chaplik, John Gillette, Travis Grantham, Gail Griffin, Liz Harris, Justin Heap, Rachel Jones, David Livingston, David Marshall, Cory McGarr, Quang Nquyen, Barbara Parker, Jacqueline Parker, Michele Peña, Beverly Pingerelli, Austin Smith, Ben Toma, and Justin Wilmeth.
In an exclusive interview with AZ Free News, House bill sponsor Neal Carter shared his thoughts on why he led this legislation in his chamber: “A tax on a citizen’s rent is terrible tax policy because it’s unfair. It’s anti-progressive, it inordinately affects lower-income Arizonans, and at a time of unprecedented rising inflation, taxing rents further exacerbates the affordability crisis that we are facing. Consider the neighborhood that I live in: about one-third of the houses are rentals, so about one-third of the people I see at the community center, or pass on the sidewalk walking our dogs are paying a tax that I don’t pay to live there, just because they pay rent but I pay a mortgage? It’s unfair.”
Legislative Republicans are serious about sending these bills to Governor Hobbs’ desk without delay. SB 1184 passed the Arizona Senate on February 9 with a party-line 16-14 vote. On Wednesday, February 14, the House passed SB 1184 with a 32-28 vote.
After the House vote on Wednesday, Representative Matt Gress tweeted, “NEW: I just voted to eliminate rental taxes in the state of Arizona #CommonSense”
Following the conclusion of the press conference, the Arizona Senate Republicans released a statement on Twitter, writing, “Your Senate and House Republicans are calling on @GovernorHobbs to support inflation relief for the hard-working citizens of our state, who are struggling to make ends meet in the face of historic inflation. SB1184 would eliminate the rental tax tenants are paying. This tax ranges from $20 to a couple-hundred bucks each month. That extra cash could help with a medical bill, gas, groceries, or other necessities. Governments are FLUSH with cash. It’s time to give back to families that are hurting right now. We are urging the Governor to sign SB1184.”
According to analysis from the Joint Legislative Budget Committee (JLBC), it is estimated that “municipalities will collect a total of $200.9 million in sales tax revenue from residential leases in FY 2023,” and “the municipal revenue loss is an estimated $(230.2) million” in FY 2025 – the first full-year impact of the legislation if signed into law.
When asked by AZ Free News about his support for this historic bill, House Speaker Pro Tempore Travis Grantham replied, “There is nothing more evil than taxing people’s food or the roof over their head. It’s time to get rid of this immoral residential lease tax and bring some needed relief to renters in our state.”
Democrats are not supporting their Republican colleagues’ attempt to give Arizonans a break from the rental tax. All committee action in both the House and Senate – as well as the vote from the entire Senate and House – has featured party-line votes, which may give a strong indication on what the Ninth Floor will do with the bill after it clears both chambers. Governor Hobbs has already set her sights on eliminating another tax, though – the state sales tax on feminine hygiene products.
Instead, Democrats have introduced other policies aimed at combatting the massive increase Arizonans have experienced in housing costs – specifically those in the rental market. On Thursday, House Democrats held their own press conference in the Rose Garden to push strategies to make the state’s housing more affordable. One of the Democrats’ solutions was HB 2161, a bill introduced by Representative Judy Schwiebert, dealing with caps on rental increases. That bill has been assigned to both the House Regulatory Affairs Committee and the Commerce Committee, and it has not been heard in committee.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
