Hobbs supports holding cities harmless from lost rental tax revenues

Published: Monday, August 7, 2023 - 3:06pm
Updated: Monday, August 7, 2023 - 5:41pm

Gov. Katie Hobbs said Monday she supports efforts to help cities and towns affected by a bill that strips their right to tax rental properties. 

Hobbs told reporters on Monday she negotiated a delayed effective date into the bill – which she signed into law last week – to help address shortfalls in municipal budgets.

Seventy-five cities and towns collectively levy $230 million annually in taxes on the owners of rental properties and homes, according to figures released by the League of Arizona Cities and Towns.

“We were able to get a delayed implementation until January 2025,” Hobbs said. “That gives us time to figure out how to hold cities harmless in terms of that lost revenue.”

The governor may face stiff opposition to backfilling city coffers from Republican lawmakers. 

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