Proposed Arizona property tax cut heads to governor's desk

Arizona Tax Revolt commentary:

Only a politician can claim credit for a tax reduction that has not existed for the last two years and that will not happen this year either. Of course doing away with what might amount for an average homeowner to a $30 per year additional property tax is to be commended. That being said, the Governor will likely veto the bill assuring that in 2010 the state property tax will return… or so she thinks. The Arizona Tax Revolt – Property Tax Levy Rollback initiative will require the separate approval by a two-thirds vote of the people in each county to approve of any state wide property tax.

Marc Goldstone, Chair.
Arizona Tax Revolt

Published: April 8, 2008
The Business Journal of Phoenix

By, Mike Sunnucks

The Arizona Senate approved a $250 million property tax cut measure Tuesday that would make permanent a temporary reduction, which is slated to run out in 2009.

The Senate approved a permanent cut to the state equalization property tax -- an item that shows up on residential and commercial tax bills. The bill passed 16 to 13 with state Sen. Ken Cheuvront, D-Phoenix, joining most Republicans in backing the bill.

Republican state Sens. Carolyn Allen and Tom O'Halleran joined Democrats opposing the permanent cut.

The bill now heads to Gov. Janet Napolitano having already passed the Arizona House. Napolitano spokeswoman Jeanine L'Ecuyer declined comment.

The equalization rate cut has the backing of business and real estate groups that want to permanently eliminate the tax. They say the reduction would help spur investment and economic growth.

Teachers unions and other critics worry about lost revenue at a time when the state faces a deficit and say the tax cut benefits wealthy homeowners and commercial property holders.