Arizona legislators approved SB1416 providing tax relief from state and local property taxes according to Tucson.com. Proponents of the bill argue that the tax relief will bring about new investment in the state and create more jobs.
“Not only will SB 1416 create thousands of high-paying jobs to thousands of Arizonans, but will catapult economic development in the right direction,” said Democratic Rep. César Chávez according to Tucson.com.
Senate President Steve Yarbrough specifically cited a new investment by technology company Intel, which has dedicated itself to refurbishing a chip manufacturing facility in Chandler.
The bill also accelerates the depreciation schedule for equipment purchased by manufacturers, a potentially significant tax break for some businesses due to Arizona assessing property tax on business equipment such as desks or computers.
Other legislation passed in the final hours include the creation of “foreign trade zones,” which according to Tucson.com, are areas where the property tax on businesses is much less than what it is in other areas. Inter-state corporations are now also allowed to determine corporate income tax based on the products made and sold in state.