Rental Tax Relief Law Set To Take Effect On January 1

Rental Tax Relief Law Set To Take Effect On January 1

By Daniel Stefanski |

Arizona Republican efforts to lower monthly bills for renters around the state have come to fruition.

Late last month, Arizona Senate President Warren Petersen shared a screenshot from an apartment property manager, alerting residents that rental taxes would no longer be on their bills. The manager wrote, “For years, Arizona has been one of the few states to allow cities and government entities to charge tax on rent. In 2023, a law was passed banning such transaction privilege tax. While the law was passed in 2023, it was not set to go into effect until January 1, 2025. Therefore, starting in January, rental tax will no longer be charged, and you will see a decrease in your monthly charges.”

Petersen responded to the news, saying, “It’s 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.”

Senator Shawnna Bolick also weighed in on the announcement from her chamber’s leader, indicating that additional plans to lower costs for Arizonans might be forthcoming from Republicans in the state legislature. She said, “In 2022, when I first sponsored that bill I met a guy from southern Arizona who asked me to do something about the residential rental tax. I spoke with this same gentleman this past week once again and he asked me to look at another tax issue since it is now going away. Stay tuned.”

Representative Travis Grantham echoed Petersen’s comments, writing, “So happy we made this happen. Wouldn’t have happened without you endlessly pushing for it!”

In August 2023, Governor Katie Hobbs signed SB 1131, the rental tax elimination bill for Arizona tenants, into law.

According to Arizona Senate Republicans at the time of the signing, “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.”

Hobbs had vetoed an earlier version of the rental tax prohibition. She 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 as it progressed through the state legislature and through the Governor’s Office in 2023. The Senate 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.

Sen. Bolick Sounds Alarm On Cost Of Inflation For Arizona Families

Sen. Bolick Sounds Alarm On Cost Of Inflation For Arizona Families

By Daniel Stefanski |

Last week, Arizona State Senator Shawnna Bolick issued a statement about economic calamities affecting families around her state.

Bolick said, “Since Kamala Harris and Joe Biden entered office, Arizona families have felt the weight of crippling inflation caused by their bad policies. In 2022, inflation hit its highest level in 40 years at 9%, and the price of every basic necessity skyrocketed. While the Federal Reserve reports inflation has since eased to near the target 2% threshold, and despite this month’s interest rate cut of 0.5%, conditions are not improving for hardworking Arizonans. Grocery store prices are 25% higher now than just before the pandemic. Homes are no longer affordable for our working class. Eviction filings have hit record highs in the Valley.”

Bolick added, “Republicans at the Legislature have made it our mission to lessen these burdens. We eliminated the tax renters pay on housing. We passed a ban on grocery taxes that sadly every Democrat voted against and the Governor vetoed. I vow to continue fighting for policies that will allow you to keep more of your money next legislative session.”

Last year, Arizona Governor Katie Hobbs signed SB 1131, which Republicans led through the state legislature. This legislation eliminated the rental tax for Arizona tenants.

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.”

Senate 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.”

Earlier that session, Hobbs vetoed SB 1063, which would have repealed the food municipal tax across the state.

After the governor’s action against the Republican proposal, Senate Majority Leader Sonny Borrelli said, “This veto is a disgraceful windfall for cities and an absolute gouge for families. We’re not only paying inflated prices to feed our families, but we’re also paying more in taxes as the cost of food rises. Food is not a luxury; it is a necessity. A tax on our groceries is regressive and hurts everyone. Over the next four fiscal years, cities and towns are estimated to receive an average of $2.3 billion per year in state-shared revenues, which is an increase of $844 million more than the average for the last four fiscal years. And yet the governor vetoed this bill, only padding cities’ bloated budgets instead of leaving more money in the wallets of hardworking taxpayers.”

Senator Bolick faces a tough General Election fight in November for her bid to return to the Arizona Legislature for another two years. Arizona Legislative District 2 is one of the most competitive in the state, with a 3.8% vote spread in the past nine statewide elections. It is very winnable for Republicans, however, as the party has emerged victorious in six out of those nine elections.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

Rep. Austin’s First Term Features Radical Socialism And No Mercy For Families Struggling With Economy

Rep. Austin’s First Term Features Radical Socialism And No Mercy For Families Struggling With Economy

By Staff Reporter |

A radical Democrat state representative is attempting to return to her middle-of-the-road legislative district for a new term in office.

State Representative Lorena Austin is running for reelection in Arizona Legislative District 9, which covers the city of Mesa. According to the Arizona Independent Redistricting Commission, the district is likely one of the most competitive in the state, with a 2.6% vote spread in the Commission’s nine focus elections. Democrats are slightly favored in the district, having won in five of those nine focus elections.

Despite her district being more moderate in its political makeup, Austin has demonstrated a propensity to become one of the most extreme leftist members of the Arizona Legislature on almost every issue.

In a struggling state and national economy, where many families are struggling to get by in life, keep their jobs, and save for their children’s futures, Austin showed no mercy with her votes. This year, she was one of a handful of members to vote against HCR 2002, which stated that the legislature recognizes, encourages, and continues to support Arizona’s beef producing farmers, ranchers, and families. Last year (2023), she voted no on SB 1131, which would have prohibited a county, city, or town from levying a tax on rental property.

Austin is also opposed to individual property rights, as her votes have indicated. In 2023, she was one of 14 members to vote against final passage of a bill prohibiting protestors from targeting people in their own homes by protesting on their residential property (SB 1023).

This latest legislative session (2024), Austin voted no on SB 1129, which would have allowed a property owner or the owners’ agent to request from law enforcement the immediate removal of a person who is unlawfully occupying a residential dwelling. She also opposed SB 1073, which would have established a new form of the existing offense of obstructing a highway or other public thoroughfare and classified this new form of the offense as a class 6 felony (which was introduced in response to protestors blocking traffic).

Austin’s legislative record extends, too, into bouts of radical socialism. In 2023, she co-sponsored HB 2610, which would have created a state-owned bank. Additionally, she co-sponsored HB 2653, which would have established that “restaurants and other food service establishments in this state may only serve water and disposable straws to customers on request.” Earlier this year, Austin voted no on HB 2629, which would have established November 7 of each year as Victims of Communism Day and required the State Board of Education to create a list of recommended resources for mandatory instruction on the topic in certain public school courses.

The Democrat lawmaker has refused to support solutions to help her state end the border crisis affecting almost every community in Arizona – not to mention elsewhere in the nation. In 2023, Austin co-sponsored HB 2604, which would have permitted the Arizona Department of Transportation to issue a driver’s license or nonoperating ID to a person without legal status in the United States. And in this most recent legislative session, she voted no on HB 2621, which would have deemed that the trafficking of fentanyl across Arizona’s border is a public health crisis and directed the Arizona Department of Health Services to do everything within its power to address the crisis. She also opposed SCR 1042, which proclaimed the legislature’s support for the people and government of the state of Texas in its efforts to secure our nation’s southern border.

Austin has an awful record in office on crimes against children. In 2023, she voted against SB 1028, which would have prohibited a person or business from engaging in an adult cabaret performance on public property or in a location where the performance could be viewed by a minor. She also voted no on SB 1583, which would have mandated that a level one sex offender who commits specified sexual offenses is required to register on the internet sex offender website if the offender was sentenced for a dangerous crime against children.

This most recent legislative session (2024), Austin continued her spree of opposing legislation that would have protected more Arizona children from horrific crimes committed against them. She voted no on SB 1236, which would have specified that any offender who was convicted of or adjudicated guilty except insane for sexual crimes against children, whether completed or preparatory, and was 18 years of age or older at the time of the offense, must be included on the internet sex offender website. She also opposed HB 2835, which would have established knowingly observing a nude minor for the purpose of engaging in sexual conduct for a person’s sexual gratification as a form of criminal sexual exploitation of a minor. And Austin voted no on a ballot referral (SCR 1021), which would statutorily require an adult who is convicted of a class 2 felony for any child sex trafficking offense to be sentenced to natural life imprisonment.

As with many of her fellow Democrats running for the state legislature, Austin promotes endorsements from left-leaning organizations for her campaign for the Arizona House of Representatives, including Moms Demand Action, Planned Parenthood Advocates of Arizona, Save Our Schools Arizona, Progressive Turnout Project, HRC in Arizona, AEA Fund for Public Education, NARAL Pro-Choice Arizona, Stonewall Democrats of Arizona, Arizona Education Association, Progressive Change Campaign Committee, Emily’s List, and Human Rights Campaign PAC.

There is one endorsement for Austin that appears to be absent from her website, from the Jane Fonda Climate PAC. Austin’s support from this PAC may be one of the most concerning for voters researching her record and determining which direction they want to see for their district. This PAC asserts that “major solutions are stopped cold: the Green New Deal, Build Back Better, clean energy investments, ending billions in tax subsidies to the fossil fuel industry – all because of politicians backed by Big Oil.”

The Green New Deal pushed by the Jane Fonda Climate PAC is the same championed by New York Congresswoman Alexandria Ocasio-Cortez, who is one of the most progressive lawmakers in the U.S. House of Representatives.

The district is currently represented by two Democrats in the state House of Representatives. Austin and her fellow Democrat incumbent, Seth Blattman, ran unopposed in the recent primary election. Austin received 10,353 votes, and Blattman obtained 8,741 votes. They will face off against Republicans Mary Ann Mendoza and Kylie Barber, who also ran unopposed in the primary election. Mendoza garnered 10,429 votes, and Barber received 10,136 votes.

November’s General Election will be the second time that Mendoza has been pitted against Austin and Blattman. In 2022, Austin and Blattman defeated Mendoza and her running mate, Kathy Pearce, to assume their offices for the 2023 Arizona legislative session.

Correction: A previous version of this article listed the incorrect vote totals for the candidates. The totals have now been updated with the latest results from the Arizona Secretary of State website.

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