Legislative Priorities

Download NAIOP's 2022 legislative agenda

2022 Legislative Highlights

The 2nd regular session of the 55th Arizona State Legislature convened on January 10, 2022. NAIOP advocates for bills that help grow the economy, attract new businesses, and reduce unnecessary costs for real estate projects. NAIOP advocates against costly new regulations and taxes and other bills that make Arizona a less competitive place to do business.

Last updated 5/9/22

Good Bills

Property Tax Class One; Equalization Assistance -
SB 1093
Prime Sponsor - Sen. J.D. Mesnard
Co-Sponsors - Sen. Vince Leach and Sen. David Livingston
Continues to gradually lower the assessment ratio on commercial property to 15% by 2027. Lowers the State Equalization Assistance Property Tax rate to provide further relief for all taxpayers and hold residential homeowners harmless. The state general fund will ensure that public schools experience no decrease in funding.
Status - Signed into law by Governor Ducey on 4/22/22.

Gift Clause Violation; Statute of Limitation - SB 1241
Prime Sponsor - Sen. Tyler Pace
Limits the statute of limitations during which a lawsuit can be brought forward on a gift clause issue in order to provide certainty to developers and municipalities involved in complex real estate projects.
Status - DEAD

Bad Bills

Attorney Fees; Cost Recovery - SB 1158
Prime Sponsor - Sen. Vince Leach
States that the court's ability to award attorney fees to the prevailing party in a contested action arising out of a contract, does not apply to either of the following:
a) an action in which a contract or provision in a contract is alleged to violate the U.S. Constitution, the Arizona Constitution or Arizona law; and
b) an action that seeks relief against a government entity.
Further requires the court to award fees to any party, other than the state, or a city, town or county, that prevails by an adjudication in a civil action brought by the party for declaratory or injunctive relief against the state or a city, town or county or other political subdivision for an action that violates the U.S. Constitution, the Arizona Constitution or Arizona law.

NAIOP opposes this bill due to the proponents' (Goldwater Institute) stated position that the purpose of the legislation is to make it easier and less expensive for them to sue cities on the gift clause provision in the Arizona Constitution. Specifically, this would have made more difficult for private developers to partner with cities on complex projects and the costs of such lawsuits would likely be passed along to private developers.

Status: DEAD

Bills to Monitor

Maricopa Country Transportation Tax Extension - HB 2598
Prime Sponsor - Rep. Carroll
Extends and modifies the half-cent TPT (sales) tax for regional transportation projects. Details still being negotiated, but current version allocates 52.5% of the annual transportation tax revenues to the RARF; 32.5% of the annual revenues to the Public Transportation Fund and up to 14% on the light rail system.
Status - Current version DEAD for this year. May come back in a special session or next year.

Housing Supply Study Committee - HB 2674
Prime Sponsors: Rep. Steve Kaiser and Rep. César Chávez
Establishes an 11-member committee to review data on housing supply and access and compile ways to address Arizona's housing shortage. Committee must submit report to legislature by December 21, 2022.
Status - Signed by the Governor on 4/25/22 with an emergency clause so the committee can begin its work soon.

TPT Prime Contracting; Alterations - HB 2749
Prime Sponsor: Rep. Regina Cobb
Co-Sponsor: Rep. Leo Bio
This is the MRRA bill, similar to the one run last year, but only applies to residential property. NAIOP had concerns with some of the proposed language related to commercial property but is neutral on the bill as currently written.

Effective January 1, 2023, this bill would modify the definitions of alteration and modification for the purposes of the prime contracting classification and narrow the application of the residential alteration contract value cap to only existing property that is not under the roof of the existing residential structure. It would retain the current definitions of alteration and modification for commercial and other non-residential property.

For more information, read the Fact Sheet.

Status - Passed the House on 2/24/22 and has been making its way through the Senate. It passed Senate Caucus on 3/31/22 and has been awaiting a Senate floor vote ever since.

Download commerical property tax report

Federal Policy

OSHA Letter
The U.S. Department of Labor’s Occupational and Safety Administration (OSHA) recently proposed to reconsider and revoke Arizona’s occupational safety and health plan (“State Plan”). If revocation if determined to be appropriate, the Arizona State Plan will be rescinded and federal enforcement over private sector employers would resume.
Our goal is to advocate for the Arizona State Plan to ensure the Arizona Division of Occupational Safety & Health (ADOSH) within the Industrial Commission of Arizona (ICA) maintains oversight in order to avoid federal government intervention. NAIOP Arizona signed on to this business community letter which will be included in the official record of comments.

I-10 Widening letter
NAIOP recently sent a letter to U.S. Transportation Secretary Pete Buttigieg in support of the Arizona Department of Transportation’s (ADOT) grant application for $300 million in federal funding to widen the portion of I-10 between Chandler and Casa Grande. The state legislature recently passed $400 million in funding for this project to put Arizona in an excellent position to secure the “MEGA grant.” Read the letter we sent to Sec. Buttigieg.