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Arizona Small Business Income Tax Referendum (2022)
| Arizona Small Business Income Tax Referendum | |
|---|---|
 | |
| Election date November 8, 2022 | |
| Topic Taxes | |
| Status Not on the ballot | |
| Type Referendum | Origin Citizens |
The Arizona Small Business Income Tax Referendum was not on the ballot in Arizona as a veto referendum on November 8, 2022.
The veto referendum was designed to repeal Senate Bill 1783 (SB 1783), which was written to replace the individual income tax that certain small business owners file with a new small business income tax.[1]
According to the Joint Legislative Budget Committee, SB 1783 reduced revenue from the Proposition 208 tax surcharge by between $262.9 million and $377.7 million.[2]
Under SB 1783, the small business income tax was 3.5% in 2021, 3% in 2022, 2.8% in 2023 and 2024, and 2.5% in 2025 and thereafter.[1]
Text of measure
Full text
The full text of the ballot initiative is available here.
Sponsors
Invest in Arizona led the campaign in support of the veto referendum.[3] Invest in Arizona was called Invest in Education in 2020 and supported Proposition 208, which voters approved.[4] In 2022, Invest in Arizona is also supporting the
Supporters
Arguments
Invest in Arizona stated the following about Senate Bill 1783 (SB 1783):[3]
| “ |
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” |
Campaign finance
One PAC, Invest in Arizona, was registered to support a "No" vote on the veto referendum. The PAC raised $4.92 million.[4]
| Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures | |
|---|---|---|---|---|---|
| Support | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Oppose | $5,021,471.80 | $267,728.13 | $5,289,199.93 | $4,998,429.42 | $5,266,157.55 |
| Total | $5,021,471.80 | $267,728.13 | $5,289,199.93 | $4,998,429.42 | $5,266,157.55 |
Support for "No" vote
The following table includes contribution and expenditure totals for the committee that supported a "No" vote of the veto referendum.[7]
| Committees in support of Arizona Small Business Income Tax Referendum (2022) | |||||
|---|---|---|---|---|---|
| Committee | Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures |
| Invest in Arizona | $5,021,471.80 | $267,728.13 | $5,289,199.93 | $4,998,429.42 | $5,266,157.55 |
| Total | $5,021,471.80 | $267,728.13 | $5,289,199.93 | $4,998,429.42 | $5,266,157.55 |
Donors
The following were the top four donors to the committee.[7]
| Donor | Cash Contributions | In-Kind Contributions | Total Contributions |
|---|---|---|---|
| Stand for Children, Inc. | $2,316,006.00 | $138,614.97 | $2,454,620.97 |
| National Education Association | $2,378,221.00 | $0.00 | $2,378,221.00 |
| Arizona Education Association | $154,920.00 | $0.00 | $154,920.00 |
| Arizona Interfaith Network | $63,500.00 | $0.00 | $63,500.00 |
| Children's Action Alliance | $2,000.00 | $0.00 | $2,000.00 |
Background
Senate Bill 1783
Senate Bill 1783 (SB 1783) was introduced on February 3, 2021. The Arizona House of Representatives voted 31-25, with four members absent or not voting, to pass SB 1783. The Arizona State Senate voted 16-13, with one member absent or not voting, to pass the legislation. Excluding non-voting members, legislative Republicans were unanimous in their support of the bill, and legislative Democrats were unanimous in their opposition to the bill. Gov. Doug Ducey (R) signed SB 1828 on July 9, 2021.[8]
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Path to the ballot
Process in Arizona
In Arizona, the number of signatures required to qualify a veto referendum for the ballot is equal to 5 percent of votes cast for governor in the most recent gubernatorial election. Signatures for veto referendums are due 90 days following the adjournment of the legislative session at which the targeted bill was approved.
The requirements to get veto referendums certified for the 2022 ballot:
- Signatures: 118,823 valid signatures for referendums targeting bills passed in both the 2023 and 2024 legislative sessions.
- Deadline for 2021 bills: 90 days following adjournment of the 2021 session
- Deadline for 2022 bills: 90 days following adjournment of the 2022 session
If the secretary of state certifies that enough valid signatures were submitted, the veto referendum goes on the next general election ballot.
R-6-2021
The campaign Invest in Arizona filed the veto referendum on July 12, 2021. Signatures were due on September 28, 2021.[9] Invest in Arizona reported filing about 123,500 signatures.[10] On November 5, 2021, Secretary of State Katie Hobbs announced that not enough signatures were valid for the veto referendum to be certified.[11]
See also
Footnotes
- ↑ 1.0 1.1 Arizona State Legislature, "Senate Bill 1783," accessed July 14, 2021
- ↑ Arizona State Senate, "Fact Sheet for S.B. 1783," accessed July 14, 2021
- ↑ 3.0 3.1 3.2 Invest in Arizona, "Homepage," accessed October 3, 2021
- ↑ 4.0 4.1 Arizona Secretary of State, "See the Money," accessed October 3, 2021
- ↑ KTAR, "Public education advocates who oppose massive Arizona tax cuts file to block them," September 28, 2021
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ 7.0 7.1 Cite error: Invalid
<ref>tag; no text was provided for refs namedfinance - ↑ Arizona State Legislature, "SB 1783," accessed October 3, 2021
- ↑ Arizona Secretary of State, "Initiative, Referendum and Recall Applications," accessed July 14, 2021
- ↑ KTAR, "Public education advocates who oppose massive Arizona tax cuts file to block them," September 28, 2021
- ↑ Associated Press, "Education groups short on signatures in tax-cut referendum," November 5, 2021
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