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Regulatory Tax CreditsOn Thursday, March 1, the House of Representatives gave its approval to an amended version of HB 2815 (employment; incentives; regulatory tax credit) by a vote of 39-18. There was extensive debate on the bill, primarily focused on its "regulatory tax credit" section, which now allows a business entity (not an individual) to claim a tax credit for a regulation that it contends costs more than the benefit. The tax credit section applies to cities and towns as well as the state government, counties and special taxing districts. The League strongly opposes the regulatory tax credit section of the bill as a complex and unnecessary intrusion into local government matters.The bill's sponsor, Rep. J.D. Mesnard (R-Chandler), proposed an extensive floor amendment that substantially changed many of the original provisions of the regulatory tax credit section. The tax credit itself is still in place, however, and claims for a tax credit would still go to a state agency, the Governor's Regulatory Review Council (GRRC), for adjudication. Ironically, if GRRC finds the claim has some validity, it is returned to the city or town where it originated for the council to take action. If the city or town council rejects the claim, it dies. The League contends that this convoluted system, which empowers a state agency to rule on matters under local jurisdiction, is completely inappropriate, if not unconstitutional. Furthermore, the city or town that has the regulation in place could take action on its own to amend, repeal or sustain it, if requested by a local resident or business without the involvement of a state agency. The League will continue to oppose the bill as it moves to the Senate. |
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Legislative Bulletin is published by the League of Arizona Cities and Towns. Forward your comments or suggestions to league@azleague.org. |
