Sen. Bolick Warns Arizona Families: Inflation’s Rising Toll

By Daniel Stefanski |

Arizona State Senator Shawnna Bolick recently addressed the economic hardships impacting families across the state. In her statement, she emphasized how inflation has surged since President Biden and Vice President Harris took office. Bolick pointed out that inflation reached a staggering 9% in 2022, the highest rate in four decades. While the Federal Reserve reports a decrease to near the target 2% threshold, many Arizona residents continue to feel the financial strain. The cost of groceries is reportedly 25% higher than pre-pandemic levels, and soaring housing prices have made homeownership increasingly unattainable for the working class. Furthermore, eviction filings have reached historic highs in the Valley.

In her remarks, Bolick highlighted the efforts of Republican legislators to alleviate these financial burdens. She noted the elimination of the rental tax on housing and mentioned a failed attempt to ban grocery taxes, which met opposition from Democratic lawmakers and was ultimately vetoed by Governor Katie Hobbs. Bolick reiterated her commitment to championing policies that would help families retain more of their income in the upcoming legislative session.

Last year, legislation known as SB 1131, led by Republicans, was signed into law by Governor Hobbs. This significant measure abolished the tax renters previously faced in Arizona.

Senate Republicans assert that approximately 70 municipalities in Arizona still impose a rental tax, contributing to record revenue for these cities and towns. From 2019 to 2023, state-shared revenues from both sales and income taxes have increased by $733 million, which is a 59% rise. Projections indicate an additional growth of $389 million between fiscal years 2024 and 2025.

Senate President Warren Petersen commented on the issue, stating that charging a rental tax constitutes poor tax policy. He noted that Arizona is among only two states allowing such a tax. Despite a previous veto from the Governor of a Republican-led initiative to abolish the rental tax, Petersen expressed gratitude for Democratic collaboration in recognizing the benefits of this reform for Arizonans.

Earlier this legislative session, Governor Hobbs also vetoed SB 1063, which aimed to eliminate the municipal food tax statewide. In response to that veto, Senate Majority Leader Sonny Borrelli criticized the decision as detrimental to families already grappling with rising food prices. He described the grocery tax as regressive, emphasizing its impact on all residents. Borrelli emphasized the projected revenue boost of $2.3 billion annually for municipalities, noting that this funding increase only serves to inflate city budgets while decreasing the purchasing power of taxpayers.

As Senator Bolick prepares for a challenging re-election campaign in November, she faces competition in Arizona’s Legislative District 2, known for its narrow margins. Despite the closeness of past elections—decided by just a 3.8% vote spread—Republicans have managed to secure victories in six out of the last nine statewide contests.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.