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Gov. Hobbs calls for tax cuts in State of State Address

Wants to end tax breaks for data centers
Gov. Hobbs calls for tax cuts in State of State Address
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PHOENIX, Ariz. (KGUN) — Governor Katie Hobbs' State of the State Address comes as she heads into a reelection campaign. The speech is her chance to lay out her agenda for this legislative session. The question is how much of her agenda as a Democratic Party Governor will fly in a Legislature where Republicans hold control.

The Governor told lawmakers her administration helped create thousands of jobs, helped people escape millions of dollars in medical debt, lowered the cost of child care, intercepted tons of illegal drugs, and protected Arizona’s water supply.

She is calling for a Middle Class tax cut of about two hundred million dollars, increasing the standard deduction on Arizona income taxes and cutting taxes on overtime and tips.

She wants lawmakers to approve that in time to affect taxes you’ll file this Spring.

She says the tax break for data centers should end. She says the sales tax exemption she and other lawmakers voted for data centers ten years ago is no longer needed now that data centers are booming.

She also wants data centers to pay for their high water use, saying, “Make data centers pay their fair share for the water they use. The average Arizona family pays one cent for every gallon they use in their homes. If data centers were to pay the same amount we could make a multi million dollar deposit into the Colorado River Protection Fund every single year.”

Hobbs is also proposing a $3.50 per night charge on short term vacation rentals. That is to pay for a fund to help people get affordable housing.