AZ Free Enterprise Club Press Release

Gov. Napolitano Sets Stage for Property Tax Increase
Recent comments conflict with “no tax increase” commitment

Phoenix, AZ – The Arizona Free Enterprise Club, a pro-economic growth advocacy group, today called on lawmakers to pass the permanent repeal of the state equalization rate, which, if not passed, will increase taxes on all Arizona taxpayers next year by about $250 million.

According to The Arizona Republic, Gov. Napolitano told an audience of educators that legislative efforts to prevent this tax increase are misguided because the state faces billions in deficits.

“The governor’s support for this tax increase is a direct departure from what she wrote in her 2009 budget plan, where she pledged not to raise taxes,” said Steve Voeller, president of the Club.

In trying to sell the tax increase, the governor told the group that the tax equates to “two lattes a year.”

“Points should be deducted for unoriginality,” Voeller said. “When politicians justify tax increases by calculating them as lattes or steak dinners, they imply that we can’t figure out what’s really going on.”

“Property tax increases affect everyone, including those who can’t afford to drink lattes in the first place.”
“Property taxes continue to rise as valuations fall, so whether it’s one, two or 200 lattes, tax increases in today’s market will hurt everyone’s bottom line.”

“This is especially perplexing since the governor recently argued that people need help with their rising adjustable rate mortgages. Wouldn’t one way to do that include preventing property taxes from going up?”