The Arizona Legislature concluded its 2025 session on June 27, following 165 days of legislative activity. Governor Katie Hobbs signed a $17.7 billion budget into law. Several bills impacting small businesses were addressed during the session.
Senate Bill 1069, sponsored by Senator J.D. Mesnard (R-District 13), was signed into law. This legislation raises the state’s business personal property tax exemption to $500,000, providing relief for small businesses burdened by property taxes.
Another bill, Senate Bill 1182, sponsored by Senator Analise Ortiz (D-District 24), also received gubernatorial approval. The bill allows businesses to operate during cooler summer hours and aims to enhance worker safety and productivity for outdoor operations.
House Bill 2119, introduced by Speaker Pro Tempore Neal Carter (R-District 15), mandates cities to notify businesses before adopting tax changes. This measure seeks to increase transparency in municipal tax codes and was passed with bipartisan support.
However, not all proposed measures were enacted. House Bill 2515, which aimed to improve transparency in tax-related bond measures, was vetoed by Governor Hobbs despite passing with bipartisan support. The Governor expressed disagreement with the bill’s approach to informing voters about general obligation bonds’ impact on taxes.
House Bill 2576, intended to reduce regulatory burdens on small business owners by allowing rectification of alleged violations before enforcement actions, was also vetoed.
Senate Bill 1050 sought to limit excise tax abatements for property developers while requiring remittance of GPLET excise taxes to school districts. This measure aimed at saving state funds but was similarly vetoed.
The National Federation of Independent Business (NFIB) Arizona played an active role in supporting these legislative efforts and continues to encourage engagement between business owners and lawmakers.
