A new from Common Sense Institute Arizona reveals that Arizona鈥檚 rate of inflation has dropped to the national average after 29 consecutive months of running above it. Year-over-year price inflation for the last 12 months in metro Phoenix is now at 3.7%, following a monthly inflation rate of .04% for the metro area in September.

Since 2020, Arizona has with high inflation rates; the consumer price index (CPI) for the Phoenix Metro was more than 12% higher in October 2022 than it was in October 2021. 

The average Arizona household has to pay over $23,000 more per year compared to 2020 for the same goods and services, including food and beverage, housing, and transportation. That鈥檚 why Arizona now dropping down to the national average of 3.7% has analysts and business leaders hopeful that the worst is behind them.

鈥淎rizona remains an affordable place to live and work when compared to our national competitors, but inflation is still too high,鈥� CSI board member and Arizona Chamber of Commerce & Industry President and CEO Danny Seiden said. 鈥淟et鈥檚 hope this latest data is a sign that big spikes in costs are a thing of the past.鈥�

Another bright spot in the data is that the cost of shelter actually decreased in September for the first time since the onset of accelerated inflation. For reference, the average monthly rent for a two bedroom apartment or home has increased by over $600 since August 2020, a 43.6% increase.

鈥淧olicymakers and the business community should continue to keep an eye on housing costs,鈥� Seiden said. 鈥淲e want to be able to continue to recruit job creators to Arizona and ensure that their employees will be able to find an affordable place to call home. If inflation is best described as too many dollars chasing too few goods, then we should work to increase the housing supply. A 鈥榊es in my backyard鈥� posture by city leaders could put some much needed downward pressure on housing costs.鈥�

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Global thought leaders, national business owners, athletes, investors, entertainers, and public officials discussed Arizona鈥檚 booming technology sector and the state鈥檚 economic outlook at the 6th annual invisionAZ Tech Summit at the Waste Management Phoenix Open. 

鈥淎rizona has the potential to become a one-of-a-kind tech hub thanks to well-built, cooperative partnerships, relentless optimism, and an innovative, entrepreneurial spirit from our state鈥檚 forward thinking leaders,鈥� said venture capitalist and Thiel Capital Managing Director Jack Selby in his opening remarks. 

The event provided attendees with a never-before-seen look at the state鈥檚 rapidly growing tech sector and the opportunity to network with the state鈥檚 leading innovators, business executives, and venture capitalists while discussing top-of-mind issues impacting our local, state, and national economies. 

Throughout the tech summit, it became clear that Arizona is becoming a premier destination for investors as groundbreaking innovations occur on the factory floor and in the lab. In fact, a few years ago, if you were to discuss venture capitalism with Valley-based investor Andy Lombard, the conversation wouldn鈥檛 have lasted more than 30 seconds. Today, however, Arizona鈥檚 venture capital market has grown exponentially.

Lombard announced that nonprofit venture capital firm Arizona Venture Development Corp. would be partnering with Arizona鈥檚 largest venture capital firm, AZ-VC, to make venture capital more inclusive and make Arizona a top-10 state for startups to fundraise. 

During the summit, AZ-VC partners Jason Pressman, Ben Brockwell, and Ashok Santhanam unveiled a new plan that will empower local Arizona entrepreneurs through personalized consultations and experiential learning methods to enable future business leaders to succeed in today鈥檚 global economy. 

鈥淭he Elevate Program helps companies with go-to-market strategies,鈥� incoming AZ-VC Managing Director Jason Pressman said. 鈥淥ver and over again, what we see is that great entrepreneurs are typically product-centric. This is a powerful tool that will help companies grow much quicker.鈥�

AZ-VC鈥檚 Elevate will include access to several coaches with seasoned operations executives, content modules surrounding business collateral, and advanced software to analyze critical business functions and increase the velocity of sales, ultimately maximizing each individual company鈥檚 core competencies and differentiators amongst a competitive market. 

The summit then shifted its focus from venture capital to emerging technologies across all sectors. During each panel, it became evident that Arizona鈥檚 diverse tech ecosystem has affected all companies across the state. 

鈥淒ata infrastructure is driving innovation within sports,鈥� said investor and Arizona Cardinals Offensive Lineman Kelvin Beachum during a panel on sports business technology. 

All the panelists concurred that learning as much about their customers as possible is critical to success in a very competitive market. 

For instance, Arizona Coyotes Chief Operations Officer Liz Montano cited the NHL team鈥檚 unique ability to adapt to extraneous circumstances through the use of customer data acquisition technology. 

When the Coyotes were told they needed to move out of Glendale, the organization only had only a few short months to find a new, state-of-the-art facility, ultimately ending up at Mullet Arena at Arizona State University. While the facility is widely considered to be one of the best hockey venues in the NHL, it only includes 4,600 seats and not a lot of assets to sell, making it difficult to reach basic revenue goals. 

Montano and the Coyotes鈥� team had to think creatively to develop new strategies aimed at providing consumers with the best fan experience possible and enable the team to sell unique products outside of the arena. 

For all the panelists, sports, like business, is personal 鈥� it directly and indirectly impacts communities, driving the state economy forward. 

When discussing medical technologies, CEOs Cindy Jordan of Pyx Health and Dave Dvorak of Deep Think Health intensely discussed whether healthcare could be turned over to Artificial Intelligence in the future. While technology quickly advances, both agree these augmentative technologies are decision-making tools to equip doctors, therapists, and physicians with the best information before making proper diagnoses. 

As the MedTech panel reached its close, attorney and moderator Dan Mahoney mentioned the discussion was meant to showcase how fast and how far Arizona technology companies have recently grown, and how prevalent they could become, especially in healthcare. 

At the end of the event, Gov. Katie Hobbs sat down for an interview with University of Arizona President Dr. Robert Robbins to discuss Arizona鈥檚 up and coming, bustling technology ecosystem and everything it has been doing for the state.

Throughout the discussion, the governor touted the state鈥檚 semiconductor manufacturing industry, as the nation becomes less dependent on foreign manufacturing markets for such crucial technology. This discussion comes just days after SEMICON, the nation鈥檚 leading semiconductor and global supply chain symposium, announced its relocation from San Francisco to Phoenix. 

Hobbs also commented on how inclusive Arizona鈥檚 business community has become. She emphasized how the state has encouraged more entrepreneurs to make a difference in their communities, citing how diverse leadership greatly impacts the local economy. 

鈥淎rizona is a place that gives everyone an equal opportunity and chance,鈥� added President Robbins. 

Selby consistently echoed this sentiment throughout the summit, stating, 鈥淣o matter where you come from, your pedigree, your background 鈥� you can make it big in the Arizona business community.鈥�

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Since Doug Ducey became governor of Arizona in January 2015, Arizona鈥檚 private sector grew by over half a million jobs, according to an from the Governor鈥檚 Office and a by the Arizona Office of Economic Opportunity.

Over the eight years of Ducey鈥檚 administration, which ended Monday, Arizona was a national leader in employment statistics, ranking fourth in rate of job growth and sixth in total jobs added. In that same time period, Arizona witnessed the fastest decline of poverty in the country, with nearly 220,000 fewer people in poverty since Ducey took office.

Ducey reflected on his accomplishments and focused on the workers and business leaders who helped make that possible. 鈥淭he engine of our economic growth has always been our people,鈥� he said. 鈥淭oday, Arizonans have access to abundant jobs as well as the opportunity to work in good-paying industries with the potential for advancement.鈥�

These industries include high-tech manufacturing in semiconductors, advanced battery manufacturing and electric vehicles. In the last year alone, Arizona added 15,000 manufacturing jobs, the fastest growth rate in the country.

The of TSMC鈥檚 new chip factory in north Phoenix earlier this month was a prime example of Arizona鈥檚 leadership in job creation. In attendance were President Joe Biden, TSMC Chairman Dr. Mark Liu, Apple CEO Tim Cook, Phoenix Mayor Kate Gallego, Arizona Chamber of Commerce & Industry President and CEO Danny Seiden and many other local and national leaders in business and politics.

TSMC recently announced it would open a second facility, nearly tripling its investment in the state from $12 billion to $40 billion. The semiconductor company is now expected to create 4,500 jobs, which will be by suppliers such as Applied Materials and KPCT Advanced Chemicals that are seeking to be closer to the new fabs.

鈥淭he legacy of this project can鈥檛 be understated,鈥� Ducey . 鈥淣ot only will it create thousands of jobs, it has positioned Arizona as a global leader for state-of-the-art semiconductor manufacturing operations.

Business growth has been another key success of Ducey鈥檚 administration with nearly 20,000 enterprises added since he became governor. Ducey鈥檚 interest in this issue has not faded, with him Arizona Business One Stop just last month to support entrepreneurs in their ambitions.

is an online portal that seeks to streamline the process of starting and growing a business in Arizona. The site brings together the work of multiple agencies, including the Arizona Corporation Commission and the Arizona Commerce Authority, to offer guided checklists, cost estimators, and an easier application process for new business owners.

Because of investments like these, Arizona has performed well on many economic indicators, ranking as the 5th best state in the country for hiring workers according to a . In a farewell address, Ducey called attention to the progress which Arizona has made since he became governor. 
鈥淲e are the new epicenter for semiconductors and high-tech manufacturing, we streamlined our government and we have the lowest flat tax in the nation,鈥� Ducey said. 鈥淭here鈥檚 an old Boy Scout motto: Leave the place better than you found it. Arizona, I can say with confidence that together we鈥檝e done just that.鈥�

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Arizona鈥檚 state income tax rate beginning January 1, 2023 will be a flat 2.5%, one year earlier than originally anticipated. Gov. Doug Ducey announced the news in a last Thursday. 鈥淚t鈥檚 time to deliver lasting tax relief to Arizona families and small businesses so they can keep more of their hard-earned money,鈥� he said.

The governor said the new lower rate is the result of the state鈥檚 historic revenue and 鈥渦nprecedented economic growth.鈥� Indeed, the state is to have a budget surplus of more than $4 billion by 2024, and the Arizona economy is #1 for economic performance.

鈥淚 signed a historic tax reform package that secures the lowest flat tax in the nation, reduces every Arizonans鈥� tax rate no matter their income, eliminates income taxes on veterans鈥� military pensions, increases the charitable contribution deduction 100 percent, and protects small business from a鈥� tax increase,鈥� Ducey said.

House Majority Leader Ben Toma, who led the legislative push for the flat tax鈥檚 passage, said that robust state revenue 鈥渆nabl[ed] the implementation of a single flat rate of 2.5% a year earlier, providing Arizonans with significant economic relief when they need it most.鈥�

The state鈥檚 business community is applauding the decision. 

鈥淕ov. Ducey promised on day 1 of his campaign that he would make Arizona the No. 1 state to live, work, and start and run a business 鈥� all while reducing the state income tax to as close to zero as possible,鈥� Arizona Chamber of Commerce & Industry President and CEO Danny Seiden said. 鈥淭oday, eight years later 鈥� and a year ahead of schedule 鈥� Arizona will officially have the lowest flat tax in the nation when we ring in 2023.鈥�
Seiden lauded the governor and state Legislature for their work in 2021 to pass a historic tax reform package that slashed rates for every Arizona taxpayer and set in motion the phased-in 2.5% flat rate, which is the lowest among all other states with an income tax. He called the news of the single flat rate鈥檚 early implementation 鈥渁 win for taxpayers, small businesses, and every Arizonan who finds themselves spending more than ever amid unprecedented inflation.鈥�

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This column originally in The Phoenix Business Journal.

鈥淭here鈥檚 no such thing as a free lunch.鈥� That old phrase is just as true today as ever before, especially when it comes to economic development.

Take a look at Arizona. Over the past seven years, we鈥檝e seen our economy explode and diversify.

During the 2008 recession, our economy was largely limited to construction and growth, and as a result, we were hit hard. Those are still big industries, but Arizona has a lot more going on today.

Silicon Valley companies are flocking here. We are the driverless car capital of America. Mega projects like Intel鈥檚 expansion and Taiwan Semiconductor Manufacturing Company鈥檚 $12 billion fab are seismic wins. And Carvana is a homegrown modern success story. Our manufacturing and health care sectors are among our fastest growing industries.

And this has all happened as other states we compete with have poured more and more money into incentives to attract businesses.

We have some natural advantages: An incredibly beautiful state and amazing weather all add up to a great quality of life.

But policy also matters 鈥� and on that front, Arizona has been a national leader, largely thanks to Governor Doug Ducey and legislative leaders.

While other states like California, New York and even Texas have focused on government giveaways, Arizona has focused on good meat and potato policies 鈥� and now other states are now copying us.

Universal licensing recognition means you can come from any state in the country and work in Arizona without having to get the permission of government bureaucrats. We鈥檝e slashed regulations 鈥� the hidden tax of government. We passed the lowest flat tax in America, and also made important reforms to business taxes to reduce the property tax burdens on businesses both larger and small and provide predictability.

These policies are permanent reforms that job creators can literally take to the bank. Meanwhile, the giveaways in other states eventually expire and evaporate.

Look to Texas. In the past, it鈥檚 been a model of job growth and free market principles. But they embraced short-term incentives over good long-term policies. In fact, one of Texas鈥� the more lucrative incentives 鈥� Chapter 313 鈥� will expire at the end of this year. The result: Businesses are scrambling and some are even having the rug pulled out from under them. And of course there鈥檚 New York, where $1 billion in tax credits to Amazon resulted in a huge public backlash. Inevitably, the businesses who were promised these prizes are left to clean up the mess.

Arizona, in contrast, offers low taxes, light regulation and metric-based incentives that businesses can plan for and account for. Arizona鈥檚 approach to economic development was designed to protect both taxpayers and businesses. The Arizona Commerce Authority 鈥� that works to attract employers 鈥� and the Arizona Chamber of Commerce and Industry, which represents businesses, work hand-in-hand. They have a customer service approach to economic development.

This more conservative and predictable approach means we have to work that much harder to land big economic development wins, but when business leaders do the math, it鈥檚 a no brainer.

And that鈥檚 the reason all of Texas鈥� ex-businesses will soon be located in the Grand Canyon State.

Danny Seiden is president and CEO of the Arizona Chamber of Commerce & Industry

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This column by Arizona Chamber President and CEO Danny Seiden originally appeared in the Arizona Capitol Times.

The state Supreme Court has ruled that the historic income tax reduction passed by the Legislature and signed by Gov. Ducey last year will not be referred to the November ballot.

That means Arizona is on its way to having a simple, low, fair and flat state income tax of 2.5% 鈥搕he lowest in the nation. But it鈥檚 worth remembering how we got to this point. In 2014, Arizona was fighting to emerge from the Great Recession, hit harder than almost every state in the country. We were staring down a billion-dollar budget deficit.

I was on the campaign trail for then-candidate Doug Ducey when he made a pledge that, to many, may have sounded like a pipe dream 鈥� as governor, he would make Arizona the No. 1 state to live, work, and start and run a business 鈥� all while reducing the state income tax to as close to zero as possible.

Skeptics mocked the idea, believing it wasn鈥檛 possible. Opponents called instead for higher taxes, claiming his plan would bankrupt Arizona. Cynics, perhaps disillusioned by years of empty promises, assumed they were being fed another speech by an ambitious politician who鈥檇 say anything to get elected. All stump, no substance.

Undeterred, Governor Ducey was elected 鈥� not once, but twice 鈥� and he has been delivering on those promises since Day One. I鈥檝e known our governor a long time. And if there鈥檚 one thing you should know, it鈥檚 that his administration is about results 鈥� not rhetoric. And the results speak for themselves.

Fast forward to today. Arizona has dug itself out of a $1 billion hole, and now sits on a record $5 billion surplus. Our economy is booming. Our population is growing. Since taking office, Arizona has welcomed 18,000 new businesses and over half-a-million new residents. We鈥檝e created almost 400,000 new jobs and recovered those lost during the pandemic faster than nearly every other state. Our 3.3% unemployment rate, better than the national average, represents a historic low not seen in over 45 years.

All of this, while pumping record investments into K-12 education, supporting vital infrastructure needs, and funding core priorities like public safety, health care and more. All of this, while cutting taxes every year and advancing pro-growth policies that have made our state among the most competitive in the nation.

None of this was by accident. The current circumstances reflect 7-plus years of good policy and relentless salesmanship by a leader who had a strong vision for what our economy could be. And as for that campaign promise? Last session, Governor Ducey championed and signed into law a historic tax reform package that slashed rates for every Arizona taxpayer and implemented a 2.5% flat rate 鈥� the lowest among all other states with an income tax.

The fate of that plan hung in limbo over recent months, as opponents attempted to overturn it via a voter referendum. Thankfully, the Arizona Supreme Court blocked those efforts, rightfully recognizing our Constitution does not allow for the referral of tax measures that impact the 鈥渟upport and maintenance鈥� of state government.

This would be a win for Arizona taxpayers and small businesses under any circumstance, never mind during this period of unprecedented inflation. This decision provides relief for every Arizonan who finds themselves spending more than ever before to fill up their cars, put food on the table, and shelter and clothe their families 鈥� and yes, that鈥檚 every Arizonan. It also provides the much-needed certainty that Arizona will have the lowest flat-tax rate in the nation 鈥� keeping our business environment among the most attractive and competitive for job creators and ensuring the continued long-term economic growth of our state.

We鈥檙e grateful to Governor Ducey and the state Legislature for delivering on a promise that Arizonans can take to the bank.

Danny Seiden is president and CEO of the Arizona Chamber of Commerce and Industry.

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A recent Applied Analysis study finds that Cox Communications has a $5.5 billion economic impact on Arizona each year.  

Cox, the largest family-owned telecommunications provider in the nation, contributes more than $84 million in state and local taxes and franchise fees each year. Additionally, the company and its employees give over $33 million annually  to nonprofits and community programs. 

The company has more than 3,100 employees in Arizona and supports over 11,000 jobs across the state. 

鈥淯pholding the commitment to the communities where we work and live that was made by our founder, Governor James Cox, Cox is proud to have a history of contributing billions of dollars to the Arizona economy through investment and employment,鈥� said Cox Southwest Vice President and Region Manager, Percy Kirk. 鈥淲e are committed to providing great service and the fastest internet speeds in the state.鈥� 

Pandemic assistance

Last year, Cox launched ConnectAssist, a program for lower-income families to receive discounted modem rental and internet packages, as part of its efforts to create digital equity and ensure all Arizonans are connected to high-speed, reliable internet. 

The Covid-19 pandemic has shown how important connectivity is, as many schools and workplaces moved online. During the pandemic, Cox pledged $60 million to help close the 鈥渄igital divide鈥�, in addition to offering free and heavily discounted subscriptions for families in need. 

The company operates 43 computer labs across Arizona, as part of a partnership with various nonprofits throughout the state. 

In total, more than 69,000 families with children received assistance from Cox throughout the pandemic.

Rural broadband

The company is also integral to Arizona鈥檚 push to fully connect rural and tribal Arizonans with high-speed internet. Over the past couple of years, the state has average of households connected to broadband internet connections, but rural areas continue to lag. 

Gov. Doug Ducey in February announced a $68.1 million investment to expand broadband connectivity along Interstate 40 West from Flagstaff to the California border. 

In March, as part of a $2.7 billion nationwide investment, Cox is bringing high-speed internet and communications infrastructure to the southern Arizona community of Huachuca City and to parts of Sierra Vista.  

Since 2010, Cox has invested $2.7 billion in Arizona鈥檚 communications infrastructure and now operates more than 30,000 miles of fiber optic and coaxial infrastructure across the state.

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Sky-high inflation was the topic of ASU Professor Jonathan Barth鈥檚 recent talk at the Political History and Leadership program鈥檚 Engaging Citizenship Luncheon.

Barth鈥檚 presentation addressed the dramatic year-over-year Consumer Price Index increase of 6.8% and explored the differences between the Federal Reserve’s response to the 2008 recession and the central bank鈥檚 response to the COVID-19 pandemic. 

While many blame supply-chain shortcomings and pent up demand from the pandemic as causes of inflation in the U.S, Barth is more concerned with what he believes is the Federal Reserve鈥檚 extreme monetary response to the pandemic. 

Barth is particularly focused on 鈥溾��, or QE, a kind of monetary policy where a nation鈥檚 central bank purchases long dated government bonds from the nation鈥檚 largest banks to increase the liquidity in its financial system. 

When the central bank pursues this kind of monetary policy, which is not uncommon, new money is added to the market, interest rates are lowered, and the central bank鈥檚 balance sheet is expanded. 

Barth says that Federal Reserve Chairman Jerome Powell has embraced quantitative easing. 

From 2020 to 2022, Powell has overseen the central bank鈥檚 increase in the nation鈥檚 money supply (M2) by 42%. Federal Reserve assets are up $4.7 trillion and excess reserves of depository institutions are up $2.2 trillion. From March of 2020 to December of 2021, the Fed鈥檚 balance sheet increased from $4.2 trillion to $8.6 trillion. 

鈥淭he latest quantitative easing has led to a jump in the supply of money,鈥� Barth said. 鈥淏anks did increase reserves, but the money supply in the U.S. economy has increased by 42% in the past two years.鈥�

All this means that the Federal Reserve has purchased trillions in assets to add new money to the economy. But Barth says Powell has done so with newly printed money dollars 鈥渃reated out of thin air.鈥�  

Barth posed this question to his audience: 鈥淲hy didn’t we see this kind of inflation when quantitative easing was used during 2008-2014 when the U.S. experienced the housing crisis?鈥� 

The 2008 housing crisis began with the collapse of subprime mortgages, which essentially burst what was known as the housing market bubble. Imprudent lending led to a significant number of loans in default. The confluence of these factors led many financial institutions to require a government bailout. Homebuilders, the stock market, as well as the U.S. and world economies experienced the greatest recession of the 21st century. 

From 2008 to 2014, Federal Reserve Chairman Ben Bernanke saw a 37% increase in money supply (M2), a $3.2 trillion increase in Federal Reserve assets, and an increase of $2.5 trillion in the Fed鈥檚 excess reserves of depository institutions. 

Barth noted that over these six years, the Fed鈥檚 balance sheet increased from $900 billion to $4.1 trillion.

The two periods of QE were different, according to Barth.

鈥淧owell鈥檚 Federal Reserve has managed a 37% increase in money supply in roughly one-third the time that it took Bernanke鈥檚 Fed to experience a 42% growth in money supply,鈥� Barth said. 

But Barth says that Bernanke never saw the kind of significant inflation that Powell is seeing today. 

provided by the Board of Governors of the Federal Reserve System, shows the difference in uptrend during the two time periods. 

Money Supply (2002-2021)

Besides the difference in duration for the two periods, the QE in 2008-2014 served a different function. 

While most of Powell鈥檚 QE has entered the market and has been multiplied by our credit system, the 2008 crisis saw banks and financial institutions hold onto money to shore up their own balance sheets. 

鈥淯nlike the QE under Bernanke, a significant amount of Powell鈥檚 quantitative easing has entered the real economy,鈥� Barth said. 鈥淩eserve balances are up since the beginning of the pandemic, but only by $2.5 trillion. The Fed鈥檚 balance sheet, meanwhile, grew by more than $4.5 trillion.鈥� 

What can the Fed do?

Barth referenced Larry Summers, an American economist who served as treasury secretary, who said, 鈥淭here have been few if any instances in which a market can fix inflation without a recession.鈥�

The U.S. economy, according to Barth, is a resilient one, however.

鈥淭he U.S. is responsible for 25% of the world鈥檚 GDP. China is a distant second and we have a very strong economy,鈥� he said.

It is not yet apparent how hard of a landing the U.S. will experience from quantitative tightening, a monetary policy that involves balance sheet normalization and a reduction by central banks in the reinvestment of proceeds from maturning government bonds. 

Barth recommends a financial strategy that 鈥渨ould involve the selling of treasury bonds that have not matured yet, the treasury yield would go up and the U.S. government would have a harder time spending money.鈥�

Barth is skeptical whether the administration will pursue such a policy. 

鈥淭he U.S. can right the ship, unfortunately it doesn’t seem like many people are interested in doing it.鈥�

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The state Legislature on Tuesday passed a personal property tax reform with bipartisan support that supporters say will dramatically simplify a complicated section of Arizona tax law. 

H.B. 2822, sponsored by Rep. Jeff Weninger, R-Chandler, sets the valuation factor at 2.5% for business personal property acquired after tax year 2022 in taxation classes 1, 2, and 6. These classes include commercial & industrial uses, agriculture, and non-profits.

Compliance with business personal property tax is notoriously cumbersome. The Arizona Department of Revenue鈥檚 Business Personal Property Tax manual includes 76 pages of instructions and 49 pages of tables that explain how to value equipment ranging from cranes to TVs and chairs. 

Chad Heinrich, the Arizona state director of the National Federation of Independent Business, said in a state Senate Commerce Committee hearing earlier this month that it鈥檚 an issue of major importance for small businesses. 

鈥淥ur members rank it second only to federal income taxes, when they look at tax issues that are important to them,鈥� he said. 

The personal property tax requires businesses to pay taxes on assets like machinery and equipment of all types, ranging from something as large as a farmer鈥檚 tractor all the way down to a simple laptop. The personal property tax is on top of the sales tax the buyer pays at the time of purchase. 

The Tax Foundation, a Washington, D.C.-based tax research association, says that unlike real property like a building or land that cannot be easily moved to a jurisdiction with more favorable tax policy, the mobility of personal property makes it more sensitive to taxation. The foundation argues that 鈥減ersonal property taxes distort investment decisions, complicate business tax compliance, and reduce economic growth.鈥� 

Tim Lawless, president and CEO of CREED, a commercial property owner advocacy group, said passage of the bill into law will help make Arizona鈥檚 tax code more competitive when it comes to landing investment over other states in the region. 

State Sen. J.D. Mesnard, chairman of the Commerce Committee and a longtime advocate for business property tax reform, supported the bill. 

鈥淏usiness personal property tax is double taxation. You pay the sales tax when you buy the thing, and then you pay it for holding it,鈥� he said. 鈥淪o, if you want folks to invest in new capital and all the jobs that creates, you want businesses to locate or expand here, this is not what you want to have.鈥� 

State Rep. Morgan Abraham, D-Tucson, said the state鈥檚 personal property tax law is overly complex, especially for small businesses. 

鈥淚 own many businesses that involve personal property and the depreciation associated with personal property is terrible 鈥� the state laws that we have,鈥� he said in a party caucus meeting where the bill was discussed. 鈥淎nd it鈥檚 very confusing and very hard for small business owners to adequately account for the depreciation of personal property.鈥� 

Abraham was one of five House Democrats who supported the bill. 

Bill sponsor Weninger said the legislation would improve the state鈥檚 overall business environment.

鈥淚t brings new jobs here, which brings new income tax, which brings new people going out and shopping and getting more sales tax,鈥� he said during debate on the bill in the House in response to criticism from state Rep. Mitzi Epstein, D-Tempe, an opponent of tax cuts. 鈥淚 think this will be a magnet and attract more large businesses, but, also, in the possibility that some businesses replace older assets sooner, as was contemplated, guess what 鈥� we get sales tax on a new item. And guess where that sales tax goes. It goes to pay for police officers, firefighters, it goes to pay for teachers, and all those kinds of things. So, to me, that鈥檚 a good thing.鈥�

The Arizona Chamber of Commerce & Industry, which made passage of the bill one of its top priorities for the legislative session, hailed Tuesday鈥檚 vote.

鈥淲e are grateful for thoughtful leaders of both parties coming together to enact a simple and fair policy solution that allows small businesses to spend more time on their operations and creating jobs, and less time with their accountants trying to cut through government red tape,鈥� Chamber Vice President of Government Affairs Courtney Coolidge said. 

Also supporting the bill was a large cross section of the business community, including the Arizona Tax Research Association, the Arizona Chamber of Commerce & Industry, and the Arizona Farm and Ranch Group. 

The bill now heads to Gov. Doug Ducey for his signature.

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Sunlit Chemical, a Taiwanese chemical company serving the semiconductor industry, has chosen Phoenix as the company鈥檚 first U.S. location. 

The multi-million-dollar investment is yet another sign of Arizona鈥檚 place in the race to meet the worldwide demand for semiconductors.

The says it has 40 semiconductor manufacturers and supplier network businesses in its pipeline, representing 10,000 jobs and $45 billion of new capital investment. 

The Arizona Commerce Authority has developed and released the, a plan designed to advance the production of semiconductors for not only the state of Arizona but for the entire U.S. This plan has received the backing from higher education institutions including Arizona State University, Northern Arizona University, and the University of Arizona, all of which are aligning their educational offering with the state鈥檚 workforce needs. 

鈥淎rizona is proud to welcome Sunlit Chemical鈥檚 first manufacturing facility in the U.S.,鈥� Gov. Doug Ducey said at the company鈥檚 groundbreaking earlier this year. 

鈥淪unlit鈥檚 decision is a testament to Phoenix鈥檚 advancement as a national and global leader in the semiconductor industry,鈥� Phoenix Mayor Kate Gallego said. 鈥淚ts new fabrication facility in north Phoenix adds to the quality jobs and research excellence significantly expanding in our region.鈥�

The 900,000-square-foot facility will be an investment of $100 million on 17 acres. Construction will take place in two phases. The first phase will concern the production of high purity grade industrial chemicals which should be operational in 2023. The second phase will concern raw material purification and should be operational in 2025.

鈥淪unlit is excited to expand into Arizona,鈥� Sunlit Group President Bryan Lin said. 鈥淭his new milestone marks Sunlit鈥檚 commitment to our partners that we are ready to expand our reach beyond Asia and set sights on the global front.鈥�

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