2008 Session Worst In Memory

Americans For Prosperity
FOR IMMEDIATE RELEASE
June 30, 2008

AFP AZ calls '08 Session “worst in memory”

PHOENIX—The Arizona chapter of Americans for Prosperity (AFP Arizona) said today that the Legislative Session that ended Friday was the “worst in memory” for fiscal conservatives.

"This is a $10.9 billion budget masquerading as a $9.9 billion budget," said AFP Arizona director Tom Jenney. "And it comes at a time when general fund revenues are about $9.1 billion." Because the budget uses debt and accounting gimmicks to push spending commitments off the books, the Legislature and Governor in January will face a cash deficit carry-forward of over a billion dollars, something Jenney said is unconstitutional. Combined with the impact of automatic voter-mandated spending increases, the deficit in January could be more than $1.5 billion.

"This Legislative Session was a near-total disaster for fiscal conservatives," said AFP Arizona chairman Chad Kirkpatrick, citing the failure to pass measures that would permanently repeal the state equalization property tax rate. That failure leaves open the possibility that Arizona politicians will attempt to impose a $250 million property tax increase on homeowners and businesses next year.

AFP Arizona also condemned other measures adopted last week by the Governor and majorities of legislators, including a scheme to finance a billion dollars in new debt for university capital projects by expanding the Arizona lottery, and a scheme to grant the special privileges of issuing tax-free bonds and levying taxes to the developer of a rock and roll theme park in Eloy.
The group did cite several small victories, such as blocking the passage of special tax breaks for solar companies and for an entertainment district in downtown Phoenix, and preventing the creation of a new taxing district for baseball stadiums in Pima County. Also, fiscal conservatives in the Legislature prevented the referral of a transportation sales tax to the November ballot, forcing the TIME Coalition to raise private funds for its ballot initiative.

Here is the Senate vote on the main FY2009 Budget bill (a “Y” indicates a vote in favor of massive debt spending and accounting gimmicks):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hb2209.sthird.1.asp
Here is the House vote on the main FY2009 Budget bill (a “Y” indicates a vote in favor of massive debt spending and accounting gimmicks):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hb2209.hfinal.1.asp
Here is the House vote on HCR2072 (a “Y” indicates a vote in favor of permanent repeal of the state equalization property tax):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hcr2072.hthird.1.asp
Here is the Senate vote on HB2220 (a “Y” indicates a vote in favor of permanent repeal of the state equalization property tax):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/hb2220.sthird.1.asp
Here is the Senate vote on SB1450 (a “Y” indicates a vote in favor of granting special taxing and bonding privileges to the Eloy theme park):
http://www.azleg.gov/FormatDocument.asp?inDoc=/legtext/48leg/2r/bills/sb1450.sfinal.1.asp
Here is the House vote on SB1450 (a “Y” indicates a vote in favor of granting special taxing and bonding privileges to the Eloy theme park):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/sb1450.hthird.1.asp
Here is the House vote on SB1084 (a “Y” indicates a vote in favor of giving taxing authority to baseball stadiums in Pima County):
http://www.azleg.gov/FormatDocument.aspinDoc=/legtext/48leg/2r/bills/sb1084.hthird.1.asp
Contact: Tom Jenney, Arizona state director, Americans for Prosperity
tjenney@afphq.org (602) 478-0146

Action Alert: Your Help Needed

Senator Gould and I need your help as our signature gathering moves into full swing. Besides needing signatures to assure that our names appear on the ballot, we are also collecting signatures to place a property tax measure on the ballot in an attempt to reduce your property tax payments. Let us mail you the petitions so that registered voters in your household, your friends and family can help us to fight the good conservative fight here at the legislature!

Letter from Americans for Prosperity Director Tom Jenny

April 16, 2008

Dear Legislative District 3 Taxpayer:

The bad news is that Gov. Janet Napolitano’s veto today of House Bill 2220 will likely result in the return of a $250 million property tax, for an average property tax increase of $100 per year for the Arizona homeowner. Combined with likely increases by city, county, and local special taxing districts, the Governor’s tax increase may contribute to significant increases in the overall property tax bills of home and business owners.

The silver lining in the cloud created by Napolitano is that there is still a small chance of repealing the $250 million state-imposed education equalization property tax, as a part of budget negotiations later in the legislative session.

And the really good news is that all of your LD 3 Legislators—Sen. Ron Gould, Rep. Trish Groe, and Rep. Nancy McLain—are part of the slim majority in the Arizona Senate that wants to help Arizona property taxpayers by repealing the tax.

In the House in March, 32 Arizona Representatives (31 Republicans and 1 Democrat) voted for the HB 2220 property tax relief bill. We have listed the names and districts of the House Good Guys here:
http://www.americansforprosperity.org/includes/filemanager/files/az/goodguyshb2220.pdf

At the same time, 28 Representatives (26 Democrats and 2 Republicans) voted against HB 2220. We have listed the names and districts of the House Bad Guys here: http://www.americansforprosperity.org/includes/filemanager/files/az/badguyshb2220.pdf

Last week, 16 Arizona Representatives (15 Republicans and 1 Democrat) voted for HB 2220. 14 Arizona Representatives (12 Democrats and 2 Republicans) failed to vote to protect property taxpayers. Here is the list of Good Guys and Bad Guys for the Senate:
http://includes/filemanager/files/az/hb2220senategoodbad.pdf

Stay tuned—we will keep you posted on property tax reforms and other taxpayer-related action as the legislative session goes on.

Tom Jenney
Arizona Director
Americans for Prosperity
http://www.aztaxpayers.org/
tjenney@afphq.org

Chambers of Commerce Letter to the Governor Re: HB 2220 Property Tax Repeal

UPDATE: The Governor vetoed this bill.

NOTE: I am so pleased to see that both the Lake Havasu Area Chamber of Commerce and the Bullhead City Chamber of Commerce signed on in support of the bill. I wonder where the Kingman Chamber of Commerce stands.

April 11, 2008

The Honorable Janet Napolitano
Office of the Governor
1700 W. Washington Street
Phoenix, Arizona 85007

Dear Governor Napolitano:

As chambers of commerce across Arizona, we encourage you to sign HB 2220 to
permanently repeal the state equalization property tax. Signing this legislation would
prevent an approximately $250 million annual tax hike on businesses and residential
property owners during a time when Arizonans are experiencing economic strain.

The statewide business community has made permanent repeal of the state equalization
rate a top priority for the 2008 legislative session. Currently, commercial property owners in Arizona pay more than twice the amount in taxes that residential property owners pay. That places Arizona in the top highest for commercial property taxes and far above our neighboring states, thus harming our competitiveness.

The business community recognizes the severity of the state’s fiscal crisis. We remain
convinced; however, that the economy is best stimulated by private enterprise. Creating an environment in which businesses can flourish will allow companies to make additional investments that will advance our economy in a powerful way. During this economic crisis, we have an opportunity to put policies in place that position us for future success. Permanently repealing the statewide equalization rate is one important step in that direction.

Sincerely,
Ajo District Chamber of Commerce
Arizona Chamber of Commerce & Industry
Bullhead Area Chamber of Commerce
Benson-San Pedro Valley Chamber of Commerce
Camp Verde Chamber of Commerce
Chino Valley Area Chamber of Commerce
East Valley Chambers of Commerce Alliance:
Ahwatukee Foothills Chamber of Commerce
Apache Junction Chamber of Commerce
Chandler Chamber of Commerce
Gilbert Chamber of Commerce
Mesa Chamber of Commerce
Queen Creek Chamber of Commerce
Scottsdale Chamber of Commerce
Tempe Chamber of Commerce
Flagstaff Chamber of Commerce
Fountain Hills Chamber of Commerce
Lake Havasu Area Chamber of Commerce
Greater Phoenix Chamber of Commerce
Pinetop-Lakeside Chamber of Commerce
Prescott Chamber of Commerce
Prescott Valley Chamber of Commerce
Sedona Chamber of Commerce
Southern Arizona Chambers of Commerce Alliance:
Marana Chamber of Commerce
Nogales-Santa Cruz County Chamber of Commerce
Northern Pima County Chamber of Commerce
Rio Rico Chamber of Commerce
Greater Sierra Vista Area Chamber of Commerce
Tucson Gay, Lesbian, Bisexual, Transgendered Chamber of Commerce
Tucson Hispanic Chamber of Commerce
Tucson Metropolitan Chamber of Commerce
St. John’s Regional Chamber of Commerce
Tri-City Hispanic Chamber of Commerce
West Valley Chambers of Commerce Alliance:
Buckeye Valley Chamber of Commerce
Glendale Chamber of Commerce
Peoria Chamber of Commerce
Southwest Valley Chamber of Commerce
Surprise Regional Chamber of Commerce
Wickenburg Chamber of Commerce
Williams-Grand Canyon Chamber of Commerce
Yuma County Chamber of Commerce

The Good, Bad, & The Ugly

Arizona Federation of Taxpayer's post details Tuesday's vote on the $250 Million Dollar Property Tax returning next year includes a list of the House Representatives who voted to repeal the tax and who voted against the bill. Both Representative McLain and I supported this legislation and I am confident that when Senator Gould has the opportunity to vote, he too will vote "YES".

AZ House Votes to Repeal Statewide Property Tax

House Speaker Jim Weiers (R-10)
News Release
Tuesday, March 11, 2008
FOR IMMEDIATE RELEASE

House backs homeowners with repeal of property tax

(State Capitol, Phoenix) – The Arizona House today helped ensure homeowners in the state avoid a $250 million tax increase.

The House passed HB2220, which permanently repeals the statewide property tax.

Two years ago, the Legislature suspended the property tax for three years. The tax reappears if the Legislature takes no action this year. The bill, sponsored by House Speaker Jim Weiers, now moves to the Senate.

“While this bill helps our struggling economy by eliminating the tax on businesses, it is also for the small guy – by keeping Arizona families in their homes,” Weiers, R-Phoenix, said. “I do not want to see our homeowners burdened by this massive tax increase.”

Without action, property owners will see the tax return in January. At a time when foreclosures in Arizona are skyrocketing, this bill brings a little relief, Weiers said.

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?”