PROTECT ARIZONA TAXPAYERS ACT

Protect Arizona families from a huge new tax burden

 

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.

What Could it Cost You?

Use the handy service tax calculator below to find out. Unless stated otherwise, all these are average monthly expenses.

  • Hair Cuts & Styling
  • Child Care
  • Healthcare
  • Dentist
  • Eye Care
  • Car Maintenance / Repair
  • Landscaping / Yard Work
  • Home Repair / Plumbing / Electrical
  • Dry Cleaning
  • Pool Maintenance
  • Accounting (annual)
  • Legal (annual)
  • Real Estate Sales (annual)

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.

Frequently Asked Questions

What is a service tax?

A service tax is a tax levied by the government on service providers (businesses) on certain service transactions. The loss of money due to the tax, is then recovered by service providers (businesses) by charging that amount on to customers.

How would the Protect Arizona Taxpayers Act affect existing sales taxes on goods?

The Protect Arizona Taxpayers Act would not affect existing sales taxes on tangible goods. Those taxes could still be raised, modified or extended.

How would passing this initiative affect local and statewide 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 now 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.

Why is it so important to pass the Protect Arizona Taxpayers Act now?

A new sales tax on services was recently proposed in the Arizona Legislature. Just this year the state of Illinois has discussed taxing 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.

How would passing the Protect Arizona Taxpayers Act affect sales taxes for goods bought online?

The sales of tangible goods are currently subject to Arizona sales tax. The Protect Arizona Taxpayers Act does not affect sales taxes for tangible goods, whether or not those goods are purchased online.

Who is backing the Protect Arizona Taxpayers Act?

The Protect Arizona Taxpayers Act is backed by a statewide coalition, Citizens for Fair Tax Policy. CFFTP was created by the 50,000+ member Arizona Association of REALTORS®, which has a strong track record of protecting consumers and is committed to protecting Arizonans from new taxes on services.

What kinds of services would the Protect Arizona Taxpayers Act keep taxfree?

The Protect Arizona Taxpayers Act is designed to prohibit the state from putting a new sales tax on services that Arizonans use every day. Here are just a few examples:

FAMILY SERVICES: Childcare, rent, health care, self-defense instruction and tutoring.

PERSONAL SERVICES: Haircuts, manicures, tattoos, dry cleaning, car repairs and funerals.

PROFESSIONAL SERVICES: Banking, accounting, advertising, technical installations and real estate.

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.

Will passing this ballot measure affect the government’s ability to raise money to pay teachers and fund school programs?

The Protect Arizona Taxpayers Act will have no effect on current education funding. As the economy grows so will revenue for increasing teacher pay. The Protect Arizona Taxpayers campaign supports fair teacher pay, quality schools and opportunities for all students to succeed.

Service taxes negatively affect low-moderate income earning Arizonans the most. Teachers and support staff are low-moderate income earners and would have to pay a service tax were it to become law. Protect Arizona Taxpayers Act will directly help teachers and classified education employees because it’s passage would protect all Arizonans from any new service taxes from being implemented

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.

New Field

Updates

We are excited to file the Protect Arizona Taxpayer Act today. The constitutional amendment will protect Arizona taxpayers from having to pay sales tax on services in the future.  As a small business owner, I worry that the politicians are going to try to add a new tax on all Arizona taxpayers.  We should not add new taxes on buying a home, cutting your hair, getting your car fixed or even taking your pet to the veterinarian.  This simple amendment will protect all of us from a potentially huge new tax burden.

Holly Mabery

Chair, Citizens for Fair Tax Policy

The Protect Arizona Taxpayers Act would provide critical protection to Arizona working families. Childcare is one of the most important and largest expenses parents face. A service tax would increase the cost of childcare adding an unfair burden on working families. This initiative will make it possible for parents across the state to rest easy knowing there is one less cost to worry about.

James Emch

CEO, Valley Child Care and Learning Centers

The Protect Arizona Taxpayers Act is right for Arizonans and right for Arizona businesses. We already pay our fair share of taxes and this would protect all of us from an additional burdensome tax.

Michelle Ahlmer

Executive Director, Arizona Retailers Association

Ballot Initiative Text
For media inquiries, email: press@protectaztaxpayers.com or call (480) 239-5588

Protect Arizona Taxpayers
P.O. Box 2528
Phoenix, AZ 85002