AZBIZ.COM

GOP lawmakers’
tax repeal plan
appears doomed


Published on Friday, February 01, 2008

Inside Tucson Business



Republican state lawmakers’ goal to permanently repeal a property tax this year appears doomed because two GOP senators now say they won’t vote for it.

The Arizona Capitol Times reports Sens. Tom O’Halleran, of Sedona, and Carolyn Allen, of Scottsdale, said they expect to take some heat for their decisions but they believe this is not the year to pursue permanent repeal of the tax.

O’Halleran’s and Allen’s votes are crucial to the Republican agenda this sesssion. Republicans hold 17 seats in the Senate to the Democrats’ 13 seats. Assuming the Democrats vote as a bloc and are joined by the two Republicans, the measure would be deadlocked and not move forward.

Allen told the Capitol Times she still intends to vote for the repeal, but that can wait until next year.

The state equalization property tax was temporarily eliminated as of 2006 but is scheduled to return on tax bills as of 2009 when it is projected to bring in $250 million. Revenue from the tax went to schools, which the state is making up with money from the general fund.

Republican leadership in both the Senate and the House have introduced measures to permanently repeal the property tax. Both measures were approved in committees along partisan lines.

Democratic Gov. Janet Napolitano has said she opposes the permanent repeal. The state is facing a revenue deficit in this fiscal year’s budget of $970 million and as much as $1.3 billion in next fiscal year.