The Arizona Chamber of Commerce & Industry is applauding Gov. Doug Ducey for dramatically improving Arizona’s tax code by signing into law HB 2822, a bill passed with bipartisan support that simplifies the state’s business personal property tax law.
The legislation was a top tax policy priority for the Chamber in 2022.
“Compliance with business personal property tax is notoriously cumbersome, especially for the state’s small businesses who don’t have an army of accountants behind them to navigate the Arizona Department of Revenue’s 76-page manual of instructions that explains how to value everything from farm equipment to laptops.”
The bill, sponsored by Rep. Jeff Weninger, R-Chandler, sets the valuation factor at 2.5% for business personal property acquired in tax year 2022 and beyond in taxation classes 1, 2, and 6. These classes include commercial & industrial uses, agriculture, and non-profits.
“Business personal property tax is a form of double taxation,” Seiden said. “Businesses pay sales tax at the time of purchase but remain on the hook to the taxman throughout the life of the equipment. We thank Rep. Weninger for his leadership in introducing legislation that improves the tax climate for businesses of all sizes and for encouraging greater capital investment. On behalf of Arizona job creators, the Chamber extends its appreciation to members of both parties who came together to adopt this wise policy.”
The Arizona Chamber is the state’s most consistent advocate for pro-economic-growth tax policy, having successfully led efforts to improve the state and federal individual and corporate income tax codes, and the corporate property tax assessment ratio.