Friday, May 20, 2005
Arizona Gov. Janet Napolitano Friday approved business property tax reductions and a "sales factor" tax cut measure that is aimed at helping semiconductor and manufacturing firms, following an intense lobbying effort by key business leaders. Those moves pleased business leaders and interest groups who made the tax cuts their top priority this year at the State Capitol.
Conservatives and Republican legislative leaders are upset, however, with the Democratic governor's veto of a corporate tuition tax credit that allows businesses to write off financial donations to private school scholarship funds. Napolitano and GOP leaders had included the private school business tax credit in their budget deal. But the governor ended up vetoing the conservative measure and Napolitano and GOP leaders are accusing each other of reneging on budget promises.
The sales factor concept, which had been introduced in years past but never passed, this year was fitted with a trigger mechanism. Computer chip makers and manufacturers must invest $1 billion in the state before sales factor tax breaks go into effect.
The governor also approved a 5 percent cut to business property taxes. That issue was the top goal of the Arizona and Greater Phoenix chambers of commerce.
State chamber vice president Farrell Quinlan said the tax cuts' approval make 2005 the "most pro-business" session in a generation.
Napolitano signs 'sales factor' tax measure, property tax cuts - 2005-05-20 - The Business Journal of Phoenix