House clears way for permanent property tax repeal

Arizona Tax Revolt commentary:

The title …”Permanent Property Tax Repeal”, what a farce!

What is it with the Phoenix Newspapers not covering the Arizona Tax Revolt? If they practiced Journalism rather than pandering to big government and the education lobby they would have reported months ago that the Arizona Tax Revolt initiatives would have required a two-thirds vote in a Nov. election in each County to permit this property tax line item to return. Now even if approved in the Senate and signed by the Governor (I wouldn’t hang my hat on this happening) the next Legislature could restore this unfair and unnecessary property tax, not so with the Tax Revolt’s Constitutional protections. This line item amounts to perhaps $50 of your $1500 property tax bill, a good start but basically lip service!

Marc Goldstone, Chair.
Arizona Tax Revolt

Published: March 12, 2008
The Business Journal of Phoenix

by Jan Buchholz

A law that would permanently cut property taxes in Arizona passed the state House Wednesday by a vote of 32-28, mostly falling along party lines with Republicans in favor and Democrats opposed.

HB 2220 amounts to a permanent repeal of the state equalization property tax rate that has been temporarily suspended for three years and is set to redeploy in 2009. The Arizona Senate still must pass its version of the bill before it would go to Gov. Janet Napolitano to be signed.

The tax break accounted for about $225 million in lost state revenue in 2007 and could amount to between $215 million to $250 million this year, according to a statement issued after the House vote by the Arizona Chapter of the National Association of Industrial and Office Properties.

The local NAIOP chapter is a strong supporter of permanently repealing the equalization tax, along with other pro-business organizations such as the Arizona Chamber of Commerce & Industry and the Arizona Free Enterprise Club.

"If this suspended tax were to return, it would be among the greatest single tax increases in state history," said Tim Lawless, president of the Arizona Chapter of NAIOP.

Opponents, however, say the loss of $200 million-plus in state revenue will create a fiscal fiasco at a time when the state already is facing major budget cuts that could severely impact basic services, including K-12 education funding.

Two Republicans opposed the permanent repeal of the equalization property tax. They were Tucson's Pete Hershberger and Avra Valley's Jennifer Burns. Mark DeSimone, D-Phoenix, sided with the Republican majority.