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WATCH: What Happened During the 2025 Arizona Legislative Session

WATCH: What Happened During the 2025 Arizona Legislative Session

August 19, 2025

NFIB State Director Chad Heinrich discusses what small business owners need to know from this year’s legislative session.

The Arizona Legislature adjourned its regular session on June 27, 2025. This year, more than 1,700 bills were filed, 439 bills were transmitted to the Governor, and only 265 were signed into law. NFIB State Director Chad Heinrich tracked 60 bills during the session, securing several important victories and warding off some harmful proposals.

In a virtual event recapping the session, Heinrich outlined several victories, challenges, and opportunities for reform in future legislative sessions.

CLICK HERE to watch the full virtual event. CLICK HERE to view a summary of legislation NFIB was proud to support.

Below are a handful of the small business victories, challenges, and opportunities discussed during the event.

VICTORIES

  • SB 1069: Raising Arizona’s Personal Property Tax Exemption

Although the Legislature has taken great strides to reform our state’s tax code, small businesses shouldered an inequitable portion of the property tax burden. Sponsored by Sen. J.D. Mesnard (R-District 13), SB 1069 raises the state’s business personal property tax exemption to $500,000, providing much-needed relief for Main Street businesses. This bill was included in the budget and signed into law by the Governor.

  • HB 2119: Ensuring Greater Transparency in Municipal Tax Bills

Sponsored by Speaker Pro Tempore Neal Carter (R-District 15), HB 2119 will require cities to inform businesses before adopting a tax change. By simply informing business owners of their tax obligations and the possibility of any changes if the local council takes action, this bill promotes greater transparency in the local tax code. NFIB was proud to support this bill on behalf of small business owners. It passed the Legislature on a bipartisan basis and was signed into law by the Governor.

  • SB 1182: Promoting Worker Safety by Cutting Red Tape on Small Businesses

Sponsored by Sen. Analise Ortiz (D-District 24), SB 1182 aims to lift local regulations that restrict or prohibit work in the cooler hours of the day during the summer. This is a great bill that NFIB was proud to support. It will keep small businesses that primarily work outdoors productive during the summer heat. By allowing small businesses to operate during cooler periods of the summer months, including work outdoors, deliver goods, and pour concrete, this bill also promotes greater worker safety. It passed the Legislature on a bipartisan basis and was signed into law by the Governor.

CHALLENGES

 

A large part of our job is combating bad bills that are filed. Even in Arizona, there were dozens of bad bills introduced this session that would have made it harder for you to own and operate your small business.

  • For example, over the past several years, legislation has been introduced mandating that small businesses accept cash for payment. These proposals often don’t allow the business to charge any fees to process cash payments, and risk opening the business up to frivolous litigation. This year, the mandate passed the House but was thankfully stopped in the Senate by Sen. Shawnna Bolick.

Although these bills did not pass, it is safe to assume they will be reintroduced next year. NFIB will continue to oppose these bills.

OPPORTUNITIES

Unfortunately, there were several bills vetoed by the Governor that would have made it easier to own and operate your small business here in our state. NFIB will continue working with lawmakers to get these bills across the finish line.

  • HB 2515: Ensuring Truth in Taxation

Sponsored by Rep. Justin Olson (R-District 10), HB 2515 aimed to enhance transparency in tax-related bond measures by requiring clear and timely notices to taxpayers. NFIB strongly supported the measure on behalf of small business owners. Through the veto letter, the Governor stated that she does not agree with being honest with voters in a bond election by informing them that general obligations bonds will be payable from taxes without limit as to the rate or amount. Despite the bill’s passage on a bipartisan basis, the problem of some local governments falsely placing statements in the official election materials, stating that their bond sales would not increase taxes, will likely continue unabated.

 

  • HB 2576: Easing the Regulatory Burden on Small Business Owners

Sponsored by Rep. Gail Griffin (R-District 19), HB 2576 sought to ease the regulatory burden on Arizonans by allowing for alleged violations identified by state agencies to be rectified before enforcement actions are taken. Overall, these changes aim to enhance the procedural rights of regulated persons while maintaining the authority of agencies to enforce compliance. NFIB strongly supported the measure on behalf of small business owners. The Governor vetoed.

CLICK HERE to watch the full virtual event. CLICK HERE to view a summary of legislation NFIB was proud to support.

KEY TAKEAWAY: Stay Engaged With Your State Lawmakers

While there are many pro-small business lawmakers in the Arizona Legislature, your advocacy makes a difference! This session, NFIB Arizona secured several important victories and warded off some harmful proposals through our direct advocacy at the Capitol in Phoenix. We hope you’ll continue to actively reach out and voice your concerns with lawmakers.

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NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

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