State Property Tax Kills Jobs

Arizona has the dubious distinction of being ranked fifth in the nation for having the highest business property tax burden. Regionally, Arizona is the worst (with the exception of California).

This means when a business is considering moving to a state, they factor in the additional costs state government will impose, along with regulations. In comparison to Nevada, Colorado, New Mexico and Utah, Arizona has a much lower business friendly environment than our neighbouring states.

Allowing the State Property Tax to return this fall without a complete repeal is a tax increase - the worst possible thing we could allow in a troubled economy. Our businesses and homeowners cannot afford an added financial burden during a time when many are struggling to hold onto what they have.

It is an extremely dangerous proposition to raise taxes during an economic crisis. As lawmakers we must make wise tax decisions to grow our economy, expand our economic base and create jobs. We do that by attracting business and innovation to Arizona.

Tax cuts didn’t lead to the state’s recent budget crisis. We must correct the $3B deficit in Arizona now because the two previous budgets under Governor Napolitano ignored the economic warning signs and relied heavily on borrowing and accounting schemes.

If the State Property Tax is not permanently repealed, it will be incorporated into property tax bills in the fall of 2009 and we will fail to attract and encourage greater diversity and investment in our state among businesses that could bring jobs to Arizona.

We must do all we can to retain and invite business into Arizona. We can continue this process by passing HB2073, the State Property Tax Repeal.