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Senate now plans to move quickly on tax repeal

Arizona Capitol Reports Staff//March 5, 2009//[read_meter]

Senate now plans to move quickly on tax repeal

Arizona Capitol Reports Staff//March 5, 2009//[read_meter]

Gov. Jan Brewer's speech on March 4 has prompted Senate leadership to move ahead with the repeal of the $250 million state equalization tax.

Senate President Bob Burns said they are working on a package that would include the repeal of the tax as well as legislation that would enable the state to receive more federal funding for child care.

"I think things have changed a little," he said on March 5, the day after Brewer's speech. "The fact that we were presented with the child care issue as an item that had to be solved on a time schedule and had to be solved without considering any other actions changes the game a little bit.

"When the game changes, we have to adjust," he said.

Brewer specifically asked lawmakers to craft a measure that would restore funding to the Department of Economic Security for a child care program and, therefore, allow the state to qualify for additional money as part of the federal stimulus package.

She asked the Legislature to pass the child care legislation before March 14.

Burns said Brewer's call for a temporary tax increase prompted members of the Senate Republican caucus to push harder for quick action on the tax repeal. He said he has always supported repealing the tax.

"It's a timing issue and that's a judgment call, and I just feel like right now the time is better than it was a week ago," he said.

Measures to address the tax repeal and the child care funding would be part of a "trailer bill" designed to amend the fiscal 2009 budget, Burns said.

Democrats, though, say it couldn't be a worse time to move ahead to repeal the equalization tax, which is a tax on residential and business property.

Sen. Rebecca Rios, the assistant minority leader, has repeatedly urged colleagues to think long and hard before "giving away" tax revenue at a time when the money could be used to lessen reductions that have led to state employee layoffs, program reductions and the elimination of state services.

Rios questioned Republican lawmakers who have said publicly that they support education, pointing out that one of the first bills they introduced was to repeal the property tax, which raises money for schools.

Last year, when the GOP caucus had only 17 members, it took the support of a Democrat to pass the property tax repeal bill, which was vetoed by then-Gov. Janet Napolitano, a Democrat. Two Republicans had refused to toe the party line. This year, though, the caucus is more conservative. And Republicans gained a seat after the November election, giving the majority a two-vote cushion with 18 members. 

The push to pass the tax repeal never really died, and it gained steam last month when a House committee passed its version of the repeal.

Sen. Thayer Vershoor, a Republican from Gilbert, provided the bulk of the pressure on Senate leadership to act soon, but several other lawmakers told the ~Arizona Capitol Times~ they want to make sure the 30-member chamber does, indeed, act this year to permanently repeal the state equalization property tax. The tax was suspended for three years but is set to return to the books if the Legislature does not make it permanent or extend its suspension this session.

Another supporter of quick action has been Sen. Ron Gould, a Republican from Lake Havasu City.

"Let's go ahead and do it," he said earlier this week.

 

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