A crucial vote on a proposal to repeal a property tax was canceled on Feb. 5, highlighting the challenges that the measures face in the state Senate.
Supporters of the tax repeal said the plan now is to hold a third reading of S1002 sometime during the second week of the month. Republican leaders have made it a priority this session to permanently repeal the county equalization rate.
On Feb. 5, Senator Jim Waring, the bill’s author, said he looked around and saw that many members would miss the action, so he made a decision to hold off on the third reading.
Senate President Tim Bee had left it to him to decide whether he wanted a vote on the measure, Waring said.
Indeed, only 24 senators were present during the roll call; five Democrats and one Republican were not on the floor.
Waring said he would like to see the measure put to a vote.
“If it goes up or it goes down, that’s the way it is,” he said. “But I want a fair fight. I don’t want to tie one arm behind my back and say people who might arguably have voted for it are now not here.”
Two Republicans — Sens. Tom O’Halleran and Carolyn Allen — have declared they will not support it at this time.
The majority caucus has 17 members and would be one vote shy to pass S1002 without the support of the two GOP senators, assuming that all Democrats would vote against the bill.
In any case, the absence of several members earlier this week diminished the bill’s chance of success.  
Allen and O’Halleran had cited two main reasons why they cannot support the proposal: One, the tax is not reinstated until tax bills go out in November 2009. Thus, there is time to act next year.
The tax rate was set to zero for fiscal years 2007, 2008 and 2009. A fiscal analysis provided by legislative research staff stated that the tax would generate $250 million in revenue in fiscal year 2010, in the absence of any legislative action.
Second, to make the repeal permanent at this time would add approximately $250 million to the structural deficit.
But those who back the proposal said allowing the tax to return is tantamount to a tax increase.
Waring said he has heard that the House has the votes to move its own tax repeal bill forward. If the House bill passes, it might encourage senators to support the Senate version, Waring said.
On Feb. 5, Allen was officially excused from the session. Also excused were senators Paula Aboud, Jorge Luis Garcia, and Charlene Pesquiera. Senators Rebecca Rios and Leah Landrum Taylor were absent.
A total of 16 Republicans were present, but O’Halleran would have voted against the measure.  
“I spoke with Tom yesterday,” Waring told the Arizona Capitol Times. “He’s got to do what he’s got to do.”
“They don’t have 16, and they are not going to until we have a discussion on the long-term impacts and how we are going to tax people in other ways, whether we want to cut their property tax but maybe shift it to school districts, or shift it to sales tax or shift it somewhere,” O’Halleran said.
Waring said he and O’Halleran discussed crafting some alternatives. “There are other things that we can also do on the property tax front, and he expressed a willingness to listen,” Waring said. 
O’Halleran said they talked about property tax reform.
“I’d like to see the levy limit dealt with in a fair and equitable way, recognizing the long-term needs of the state. I’d like to try to see some of the speculative bubble taken out of the valuation part of the system,” said O’Halleran, a Republican from Sedona.
O’Halleran said he would like to make sure citizens are well informed when they vote on bonding issues, and said “what they are really doing is adding more and more burden onto to their property taxes.”
Waring made clear S1002 would be put up for a vote.
Senate Majority Leader Thayer Verschoor maintained that his caucus is committed to bring the measure to the full chamber for a vote.
“We have made it a priority as far as the caucus and I think we have done what we can do. We would hope that it would pass, but people will have to do what they believe is right, and I’m sure that’s’ what will happen,” Verschoor said.