Arizona Senate President-elect Warren Petersen, R-Gilbert, unveiled his inflation reduction agenda this week.
Petersen is calling for state government to take at least four actions to combat the rising cost of living in the state, according to a press release from his office.
Petersen wants to eliminate the state’s rental tax, hoping to save tenants money.
“Government makes plenty of money from the income tax charged to landlords,” Petersen said in the release. “Tenants should not also be required to pay a tax. People who own the homes don’t pay a tax every time they make their mortgage payment. Tenants shouldn’t have to either. This initiative alone can put thousands annually into the pockets of tenants.”
Arizona communities impose rent taxes of about 1.5% to 3% depending on the area.
Petersen also wants to exempt food for home consumption from municipal sales taxes; food is generally already exempt from sales tax at the state level.
“Food is not a luxury. It is a necessity,” Petersen wrote. “This tax is regressive and hurts the poorest of the poor. Fortunately, many cities do not charge a food tax. Let’s ban it completely.”
Additionally, Petersen says he wants to combat rising housing costs by easing the process to increase the state’s housing stock.
“20 years ago, you could take a property from dirt and build a house within six months,” Petersen wrote. “Those days are long gone as a litany of hurdles have been placed in obtaining approvals for land development and housing. Now, it can take as long as four years! Let’s increase the housing supplying by shortening this window. One way to accomplish this is through administrative approvals for all projects that meet all existing laws and requirements.”
Plus, Petersen wants to reduce and eliminate fees for occupational licensing. It would not be the first time the state reduced these fees. Since 2017, Arizona has waived occupational licensing fees for people earning less than 200% of the federal poverty level.
“Whether you’re a barber, realtor, loan officer, contractor, or other licensed professional, you are required to pay fees to the state to hold your license,” Petersen wrote. “Let’s cut those in half or eliminate them altogether. This step will put hundreds of dollars back in the pockets of our hard-working taxpayers. These initiatives listed are not too difficult to accomplish. Local and state governments have surpluses in their coffers. I look forward to working with my caucus, Finance Chair J.D. Mesnard, Appropriations Chair John Kavanagh and Government Chair Jake Hoffman to counter the effects of rampant inflation.”
Republished with the permission of The Center Square.
