Each day millions of Arizonans pay for an array of services integral to daily life, from medical treatments to auto repairs to haircuts and more. But a measure on the ballot for this upcoming election threatens to make doing so much more difficult for taxpayers.
Arizona Proposition 126 would ammend the state constitution to prohibit state and local governments from enacting new taxes ot increasing tax rates on services performed here — services that include real estate, among others.
To avoid facing new and higher taxes on your profession in the future, we encourage you to vote yes on Prop 126.
Why is it so important to pass the Protect Arizona Taxpayers Act now?
A new sales tax on services was proposed recently in the Arizona Legislature. Just this year, the states of Oklahoma and Illinois have discussed taxing services. Other states, such as North Carolina and Washington State, 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.
Who would a service tax affect most?
Sales taxes hit low-and middle-income families hardest. The Protect Arizona Taxpayers Act protects those who are least able to afford new taxes, including senior citizens, the disabled and others on fixed incomes.
Financial Impact on Government
Arizona does not currently impose a broad sales tax on services. Because the Protect Arizona Taxpayers Act would protect Arizona from imposing future sales taxes on services, there would not be any financial impact on governments because they do not currently collect such a tax. The Protect Arizona Taxpayers Act is revenue-neutral. A constitutional amendment adds certainty that future Arizona politicians and bureaucrats cannot simply change or interpret the law to allow sales taxes on services.
How the Act Protects Arizonans
The Protect Arizona Taxpayers Act adds constitutional security to Arizona’s current practice of not taxing sales of services we use every day. It tells politicians to stop wasting tax dollars they already collect, stop looking for new ways to tax our citizens, and protect Arizona taxpayers from new taxes.
No Effect on Sales Tax
The Protect Arizona Taxpayers Act would not affect existing sales taxes on tangible goods. Those taxes could still be raised, modified or extended.
A few examples of the types of services that could be affected:
- Family Services: Childcare, rent, health care, and tutoring among others
- Health Care Services: Physicians, surgeons, nurses, physical therapists, dentists, eye doctors and counselors
- Home Services: Construction, plumbing, lawn care, heating and air conditioning, installations and repairs, appraisals and inspections
- Personal Services: Haircuts, manicures, tattoos, dry cleaning, car repairs and funerals
- Professional Services: Banking, accounting, advertising, technical installations and real estate
- Veterinary Services: Vaccinations, microchipping, wellness visits, grooming, spay/neuter and more
Get Involved / Contact Us
Join our Coalition to Protect Arizonans from New Taxes
It’s time to ban forever any sales tax on professional services that Arizonans use every day — services ranging from advertising to haircuts to rents to manicures to medical care. These services are not currently taxable, and the amendment would finally stop any efforts to impose new taxes on services.
Get involved here.