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 Matthew Holloway | May 16, 2025 | Education, News
By Matthew Holloway |
Governor Katie Hobbs vetoed HB 2700 on Monday which would have compelled the Arizona State Board of Education to include Geography in its prescribed competency requirements for graduation from high school and defined that instruction to include instruction accurately referring to the Gulf of America.
In her veto letter to Arizona House Speaker Steve Montenegro, Hobbs chose to adopt an adversarial, scolding tone toward Republican leaders.
Hobbs wrote, “Today, I vetoed House Bill 2700. Arizonans want us to work together to lower costs, secure the border, create jobs, and protect public education. Instead of joining with me to do that, this Legislature has chosen to attempt to dictate how teachers refer to geographic features. I encourage you to refocus your time and energy on solving real problems for Arizonans.”
State Rep. Teresa Martinez (R-LD16) held a different view however and emphasized the importance of accurate and patriotic instruction for Arizona students: “It’s important to start teaching pro-America to our students. What better way to promote a patriotic country and teach children about patriotism than to start calling it Gulf of America and taking pride in that?”
While making her disapproval of the bill clear, Hobbs called upon Republican legislators to “work together to lower costs, secure the border, create jobs, and protect public education,” despite her recent vetoes, which have thrown aside meaningful reforms in all four policies.
In 2023, Hobbs infamously vetoed SB 1184 which would have eliminated rental taxes that drive up the monthly rent of millions of Arizonans, and SB 1063 which would have banned sales taxes on groceries. The sponsor of SB 1063, Senator Sonny Borrelli, said that Hobbs “would rather have windfall taxes go to cities on the backs of people that need to survive on essential items like groceries consumed at home.”
On Border Security, Hobbs vetoed the Arizona Immigration Cooperation and Enforcement (ICE) Act, SB 1164 this April, and SB 1610 earlier this month, which would have required county detention facilities to cooperate with U.S. Immigration and Customs Enforcement (ICE) by providing access to data on illegal aliens arrested for serious crimes.
On the subject of Jobs, Hobbs drew severe criticism from Senate Majority Leader Janae Shamp (R-LD29) when she vetoed SB 1584.
“The Governor despicably vetoing this bill demonstrates her support for discrimination and a lack of leadership for refusing to push back against fellow Democrats who support these unethical hiring practices,” Shamp said at the time. ” I am extremely disappointed, yet not surprised, that Hobbs continues to appeal to the radical left with her tone-deaf veto decisions, rather than support legislation to reform workplace policies that prioritize anything other than talent and hard work. It’s truly petrifying that we have a governor who can, without shame, prioritize discrimination and favoritism, over unity and respect for every Arizonan.”
Hobbs also vetoed another school related bill, SB 1050, sponsored by Senator Vince Leach (R-LD17) in April. The bipartisan measure would have directed tax dollars from Government Property Lease Excise Tax (GPLET) to schools by prohibiting the abatement of school district-designated tax revenues. “This was a missed opportunity by the Governor,” Leach told AZ Free News. “She says she supports education funding, but her veto suggests otherwise.”
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 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.
