by AZ Free Enterprise Club | Mar 19, 2025 | Opinion
By the Arizona Free Enterprise Club |
Every time the Republican-controlled legislature considers cutting taxes, the biggest obstacle is the taxpayer-funded lobbyists representing cities, towns, and counties. They come down to the legislature year after year accusing lawmakers of “defunding” local government. And, of course, it is always police, fire, and public safety on the chopping block and never DEI programs, art projects, or other unessential and unnecessary spending projects.
The problem with this narrative is that it is completely false. Cities and towns are flush with cash and have actually received enormous windfalls, not cuts, from the legislature. The result has been hundreds of millions in new revenue for the cities in just the last 6 years. Most of it from two sources—online sales and enhanced state shared revenue.
Online Sales Tax Windfall
In 2019, the legislature passed legislation responding to the Wayfair decision, allowing the state and local governments to tax online sales from sellers outside of this state. At the time, it was sold as a “meager” $85-million-a-year tax increase. But now, five years since the legislation was enshrined into law, taxpayers are doling out over one billion dollars in total collections each year to state and local government…
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by Jonathan Eberle | Mar 19, 2025 | Economy, News
By Jonathan Eberle |
A proposed amendment to Arizona’s tax laws could make it significantly harder for cities and counties to raise taxes and fees. Senate Concurrent Resolution (SCR) 1008, sponsored by Senate President Warren Petersen, proposes requiring a two-thirds majority vote from municipal and county governing bodies before they can increase assessments, taxes, or fees.
SCR 1008 builds upon Arizona’s existing tax-related voting requirements. In 1992, Proposition 108 established that any net increase in state revenue—including tax hikes or new fees—requires a two-thirds vote in both chambers of the state legislature. More recently, Proposition 132, passed in 2022, mandated that any tax-related ballot initiative or referendum must receive at least 60% voter approval to become law.
Currently, municipal and county governments must provide a 60-day public notice before imposing new business taxes or fees. However, SCR 1008 would go further by requiring a supermajority vote at the local level before such increases could be enacted.
Key provisions of SCR 1008 include:
- A two-thirds vote by a city’s common council would be required to increase any assessment, tax, or fee.
- A two-thirds vote by a county’s board of supervisors would be required for similar increases.
- The measure declares tax and fee regulation a statewide concern, limiting the ability of local governments to adopt different rules.
- The proposal must be approved by voters in the next general election before becoming law.
If approved by the legislature, the measure would head to the ballot for voters to decide its ultimate fate.
SCR 1008 reflects ongoing efforts by Arizona lawmakers to place additional restrictions on tax increases at both the state and local levels. Supporters argue that requiring a supermajority vote will protect taxpayers from excessive government fees, while opponents contend it could limit the ability of local governments to fund critical services such as infrastructure, public safety, and education.
The bill narrowly passed the Senate Government Committee with a 4-3 vote and now awaits further legislative consideration.
If approved by voters, SCR 1008 would significantly change the way local governments in Arizona raise revenue, ensuring that any tax or fee increase has broad political support before becoming law.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
