Permanent Property Tax Relief
Issue Overview: In 2006, lawmakers approved a moratorium on the state equalization assistance property tax rate, providing some tax relief for home and commercial property owners. For tax years 2006 through 2008, the state equalization assistance property tax rate is set at zero. Beginning in 2009, the rate returns and is calculated based on the truth in taxation adjusted rate from the 2005 tax year.
This year, lawmakers will seek to make the tax moratorium permanent. Sen. Jim Waring has introduced SB 1002 to make the tax cut permanent. House Speaker Jim Weiers has introduced a HB 2220.
NFIB Position: Arizona's commercial property taxes rank among the top five highest in the nation. Out of 75 barriers to business start-up and continuation measured by the National Federation of Independent Business's Small Business Problems and Priorities report, property taxes ranked sixth. With Arizona having a high property tax burden on small businesses, NFIB/Arizona supports the permanent real property tax relief.
Issue Status: Gov. Napolitano vetoed HB 2220 April 16, 2008.
