Signatures filed for Arizona initiative prohibiting new service taxes and fees
Arizona Secretary of State Michele Reagan reported Tuesday that 406,353 signatures were filed for a ballot initiative to prohibit the state and local governments from imposing new taxes or fees on services. Services is a broad category that includes not-tangible purchases, such as childcare, banking, advertising, and healthcare services. The measure would not affect taxes in place on December 31, 2017.
Citizens for Fair Tax Policy, a political action committee, is leading the campaign in support of the initiative. According to the group, Arizona does not impose a sales tax on most services, but they want to take preemptive action against legislation to impose a sales tax on services. “Other states, such as North Carolina, Washington and now Oklahoma, have started imposing new sales taxes on services this year. The threat is real because politicians often share bad ideas, and a sales tax on services is a bad idea for all Arizonans,” said the PAC.
State Sen. Steve Farley (D), who is running for governor in 2018, criticized the proposal, saying, “They're cutting off any ability of people to fund that stuff in the future as the economy changes.” House Speaker J.D. Mesnard (R) did not take a position on the initiative, but said, “From a philosophical standpoint on how government should be run, I tend to believe that public officials need the flexibility to govern. So putting restrictions on their ability isn’t helpful.”
Citizens for Fair Tax Policy is the first group to file signatures for a ballot initiative in Arizona in 2018. At least 225,963 (55.61 percent) of the filed signatures need to be valid for the initiative to make the ballot for the election on November 6.
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