This proposed constitutional amendment would establish annual spending limits for Arizona school districts based on adjusted 1979-1980 spending levels, adjusted for student population growth and inflation. The limit is calculated as 1.10 times the adjusted baseline amount, prohibiting districts from exceeding this cap using local revenues (excluding specific exempted funds like federal grants, bond proceeds, and self-supporting school services). Districts could exceed the limit only if the legislature passes a two-thirds vote concurrent resolution. The measure directly affects all public school districts and community college districts in Arizona by constraining their local budget flexibility.
HB 2394 amends Arizona's property tax code to create new deductions for contractors in the "prime contracting classification," primarily affecting construction businesses and manufactured building dealers. It allows contractors to exclude specific costs from their taxable base, including land sales (up to fair market value), groundwater monitoring equipment, unattached furniture/fixtures, military reuse zone projects (with qualification), environmental cleanup work, and machinery/equipment with "independent functional utility." To claim certain deductions (like military or environmental projects), contractors must obtain a pre-work letter of qualification from the Department of Revenue. This bill does not change tax rates for homeowners but adjusts taxable income for specific contractor activities. The title referencing "residential property" is misleading, as the changes apply to contractor tax calculations, not residential property owners.
HB 2154 prohibits Arizona state and local governments from using public funds for family planning services at providers that perform or facilitate non-federally qualified abortions. This directly affects clinics and health centers that offer abortion services not meeting federal reimbursement standards (defined as abortions not eligible for federal funding under the Social Security Act). The law requires public funding for family planning to follow a priority order (state facilities first, then hospitals and federally qualified health centers) and allows the attorney general or affected entities to enforce the ban through legal action. Violations may result in recouped funds and attorney fees.
HCR 2011 proposes a constitutional amendment that would limit Arizona state spending to 7% of the state's estimated total personal income each fiscal year, calculated annually by a newly established economic estimates commission. This spending cap would apply to all state government appropriations except for community colleges and universities, which are exempt starting fiscal year 2027-2028. The amendment also creates mechanisms to adjust the spending limit when federal or local governments assume or transfer funding responsibilities for public services. The bill requires a two-thirds vote in both legislative chambers to exceed the 7% limit for specific appropriations.
HB 2939 creates a state income tax credit for businesses expanding or locating qualified facilities in Arizona. It directly affects businesses that make new capital investments, create qualifying jobs paying at least 125% of the median wage (100% in rural areas), and provide 65% employer-paid health insurance. The credit equals 10% of qualifying investments, capped at $200,000-$300,000 per new job, with a $125 million annual cap and $30 million per business limit. Businesses must retain operations at the facility for five years and claim credits in five equal installments over time.
HB 2288 adds a new tax deduction for Arizona corporations receiving dividends from foreign companies. Specifically, it allows corporations to subtract foreign dividend income from their Arizona taxable income, including certain types of foreign earnings like global intangible low-taxed income and "subpart F" income under federal tax rules. This change directly affects Arizona-based corporations that earn income from foreign subsidiaries or investments. The deduction lowers their state taxable income, potentially reducing their Arizona tax liability, but applies only to corporations (not individuals).
SB 1084 repeals Arizona's existing regulations governing online home-sharing platforms (like Airbnb) by removing specific legal provisions related to short-term rentals. It directly affects hosts and platforms operating in Arizona by eliminating prior requirements for registration, taxation, and reporting under sections of the Arizona Revised Statutes. The bill removes sections that previously defined "online lodging" and established regulatory frameworks for home-sharing businesses. Key mechanisms include repealing sections 42-5042, 42-5076, and others while amending related tax disclosure rules (like 42-2003). This action simplifies the legal landscape for home-sharing by removing state-level regulatory barriers.
HB 2637 updates Arizona's method for calculating annual spending limits for cities, counties, and other local governments (not school districts, as the title suggests). It requires the state commission to determine each jurisdiction's expenditure limit using a formula based on population changes since 1979 and inflation adjustments (GDP price deflator), with annual reports to local governing boards. The bill includes specific rules for adjusting limits when jurisdictions annex new areas, split, or form new cities or counties. This directly affects all Arizona political subdivisions subject to the state's constitutional spending cap, ensuring their annual budgets reflect population growth and inflation. The changes apply to how these limits are calculated and reported each year.
SB 1332 prohibits Arizona from providing state funding or financial support for new light rail construction projects. It requires the state transportation department to conduct a feasibility study by December 2027, comparing light rail costs, environmental impact, ridership, and maintenance against alternatives like autonomous vehicles and bus systems in Maricopa County. The study must be submitted to state leaders and Phoenix officials, with findings informing future state involvement decisions. The bill expires on June 30, 2028, making it a temporary measure to evaluate transit options before potential future funding.
SCR 1028 is a proposed constitutional amendment (not a regular bill) that would require a two-thirds vote in both Arizona legislative chambers to pass any law increasing state revenues. It defines "revenue increases" to include new taxes, higher tax rates, fee hikes, or changes to tax deductions/exemptions, while excluding effects like inflation. If approved by voters, it would change the process for future revenue-raising measures, requiring supermajority approval instead of a simple majority. The amendment is now scheduled for voter approval at the next general election.
