Arizona Governor Katie Hobbs signed a pair of bills into law on Tuesday after months of behind-the-scenes negotiations with Republicans. One asks voters about the continuation of the transportation tax and the other abolishes the tax on housing rents. legislative leaders.
The first bill asks voters in Maricopa County whether to extend the half-cent sales tax known as Proposition 400, largely to Hobbes’ credit for overcoming Republican opposition over light rail financing. is.
During a stalemate with Republicans in Congress in June, Mr. Hobbes vetoed the Republican version of Proposition 400, and the administration continued to negotiate compromises included in the bill. Senate Bill 1102 It won bipartisan support in Congress on Monday.
In return, however, Hobbes signed a Republican-backed bill that would ban municipalities from taxing housing rents, a bill that could hurt city and town budgets, leaving Hobbes and Mr. It can strain relationships with local leaders.
In February, Hobbes vetoed a similar rental tax bill, overruling Republican lawmakers, who said it was a burden to Arizonas suffering from high inflation. The tax he varies from 1.5% to almost 3% depending on the city that imposes it. In his February veto letter, Mr. Hobbes said previous bills lacked a guarantee that the savings would go to renters instead of being absorbed by landlords.
The bill she signed Tuesday would ban the rent tax, Senate Bill 1131will enter into force in January 2025.
Hobbes’ office released a statement regarding the signing of the Proposition 400 bill it referred to in passing the governor’s action on the rent tax bill and other bills. House Bill 2670. The bill would allow members of the Arizona National Guard and reservists to be buried in the Veterans Cemetery, and members of the country’s Space Force, created by then-President Donald Trump in 2019, would also be allowed to join other branches of Arizona. be eligible for the same national service as veterans of army.
In his statement, the governor only referred to Proposition 400, saying it “showed that we can put politics aside and work together across partisanship to do great things for Arizona.”
“With support beyond political parties, businesses, workers, and the Arizona public, Prop 400 will secure the future of our economy and give every Arizonan a chance to succeed in a thriving economy,” she said. stated in the statement.
Hours earlier, Senate Republicans declared the rental tax bill a unique achievement to help renters.
Senate Speaker Warren Petersen (R-Gilbert) said in a statement that “collecting rental taxes is bad tax policy.”
“Our first attempt to abolish the tax passed Congress with only Republican support and was eventually vetoed by the Governor, but our Democrat colleagues sat down with us to talk about this. Thank you for recognizing the real and tangible relief that reform can bring.” “
The Arizona legislature suspended legislative work for the year on Monday after confirming that it reached an agreement with Hobbes on Proposition 400 and the rental tax bill, appointing one of her candidates to head the state agency. bottom. Most of these candidates have yet to be confirmed, leaving state senators and governors with unfinished business.