| UPDATE ON SB 1271 - Anti-Deficiency Statute Change
As mentioned previously in the Capitol Insider, language to repeal SB 1271, the anti-deficiency statute change, has been included in one of the budget bills, HB 2008. The bill has passed the Senate and is awaiting transmittal to the Governor. It is rumored that the Governor will veto any budget bill package that does not include a sales tax increase or referral for public vote. Since the budget bills passed do not include either of these options, our concern is that she will veto HB 2008. The change to Arizona's anti-deficiency statute is a very important issue with serious consequences for Arizona homeowners. We continue to communicate with the Arizona House, Senate and Governor's office about the urgency of this matter, requesting that it be addressed during this special session. Sales Tax on Services Pops Up Again
Yesterday, AAR CEO & Chief Lobbyist Tom Farley testified in the House Appropriations Committee against a last-minute attempt to establish a sales tax on services. Rep. Matt Heinz (D-29) offered up the amendment to SB 1025 which would have effectively broadened the sales tax base to include services. The amendment failed to pass along a party-line vote. We can expect to see even more of these attempts to establish a tax on services in future special sessions as well as next year. Getting Around Burns vs. Brewer
In an effort to comply with the Burns vs. Brewer court order, the legislature is having the Senate hang on to the budget bills that originated in the House and can only be transmitted to the governor from the House. President Burns told reporters that the legislature is not violating the law because it is an issue of transmittal between the House and the Senate, not the legislature and the executive branch. HB 2008, which includes the repeal of the anti-deficiency legislation passed during regular session, is included in the bills currently being held in the Senate. Burns Urges Governor to Sign Budget Without Referral
President Burns is set to meet with the Governor later this week to request her signature on the budget bill. For the past seven weeks, the Senate has been working towards getting the elusive 16 votes needed for the 1-cent sales tax referral, only to come up two votes short. Leadership feels they have exhausted all efforts to garner the 16 votes, and President Burns is expected to ask the Governor for her signature without the referral. The Senate is waiting to transmit the budget bills to the House until the House passes SB 1025, which is needed for the overall package. Once that is completed, it is expected that all budget bills passed will be transmitted to the Governor. |
