Grand Canyon Times

Tax cuts are being pushed in the Arizona Legislature by Republicans after much higher than expected tax collections come in. 

Online shopping has caused a high out-of-state sales tax collection in addition to revenues within the state being high as well. Republicans are asking for both small and large tax cuts, with the largest one already going through the House of Representatives.

The Ways and Means Committee discussed the plan, which would include $100 million in property taxes cut for both commercial and residential property. It was also proposed that income taxes would be cut and that there would no longer be a vehicle license fee. Both propositions passed. 

Last month, Gov. Doug Ducey also proposed a $45 million tax break for retired military personnel. 

Democrats don’t fully agree with the tax cuts, many of which believe there are other state needs, such as school, that need the tax money. 

“As long as the state of Arizona is shortchanging our children and our schools, and as long as the state of Arizona is worst in the nation for adverse childhood experiences, we don’t have a budget surplus,” Rep. Pamela Powers Hannley said, according to azfamily.com.

Rep. Ben Toma said the tax cuts will prepare the state for growth. 

“Broad-based tax cuts and just cutting red tape in general will lead to more revenue for everyone,” Toma said, according to azfamily.com. “And we’ve seen that happen, in spite of the fact that some sort-of strongly wish that was not true. But it has been true, we’ve seen how that’s worked from the federal level all the way down.”

The state expects a budget with approximately $1 billion extra for the next budget year, which will begin on July 1. 

The surplus is rising as internet sales continue to go beyond what was expected. The budget planned for $85 million a year will fund revenue, school, cities and counties, but will come out to be above the estimate. 

If tax collections continue at such a fast growing rate, the general fund will have collected a $126 million surplus. Toma said it’s not a surprise that proposals for property tax cuts were $100 million. 

“We’re sitting on a pretty hefty surplus once again, so I think it’s fair to have a discussion about whether or not we offset most of this additional revenue this year with some sort of broad-based tax cut,” Toma said to AZ Family. 

The Senate is also moving forward with another tax cut sponsored by Sen. J.D. Mesnard, which would have multiple tax cuts designed to save taxpayers $355 million within a three year period.