PHOENIX — Gov. Katie Hobbs has vetoed legislation that would have cut Arizona's rental tax, claiming it didn't ensure financial relief for tenants.
Republican lawmakers said they passed Senate Bill 1184 with the intention of offering inflation relief to Arizona residents. But the bill was passed with little support from Democratic lawmakers, making it likely that the governor wouldn't sign the legislation.
"I appreciate the legislature’s interest in addressing rising housing costs, particularly for renters," the governor said in a statement. "For working families faced with ever-increasing rental prices, this proposal just doesn’t fit the bill."
Hobbs said the bill didn't guarantee a financial benefit for renters and could face legal challenges. The governor further objected to SB 1184 appropriating $270 million over the next 18 months, which Hobbs said was "irresponsible" budgeting.
Because the bill would have prohibited cities from levying a rental tax, the legislation attempted to compensate cities by allocating money out of the state general fund.
Several Arizona cities came out in opposition to SB 1184 and some Valley mayors urged Hobbs to veto the legislation.
"Unfortunately, SB 1184 guts a significant revenue source cities and towns use to provide important services including public safety, parks, and libraries," a group of Valley mayors recently wrote in a letter to the governor.
In response to the governor's veto, Republican lawmakers criticized Hobbs for not doing enough to address inflation.
"It is clear Governor Hobbs, just like the city special interests that lobbied her to veto SB 1184, need to move as much money from Arizonans’ pockets to government coffers," said state Sen. Steve Kaiser of District 2. "How else could they pay for her big government ideas and inflated state budget?"
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What is the Valley?
“The Valley” is what locals call the Phoenix Metropolitan Area. It is considered the largest metropolitan area in the Southwest.
The Valley is made up of various major cities other than Phoenix, including:
- Mesa
- Chandler
- Scottsdale
- Tempe
- Glendale
- Surprise
- Peoria
- Gilbert
- El Mirage
- Avondale
- Litchfield Park
- Goodyear
- Buckeye
Whether a city is in the “East Valley” or “West Valley” depends on where it is in relation to Phoenix.
The cities of the Valley have a combined population of 4,845,832 people, according to the 2020 United States Census. This makes it the 11th largest metropolitan area in the country right behind the Boston and Atlanta areas.