Labor quality and inflation continue to be a problem for small businesses across the country, according to the National Federation of Independent Business’ monthly Jobs Report. However, Arizona is an exception due to its business-friendly environment.
“Our Jobs Report is a national snapshot, so it does not consider the current pro-small-business policy deliberations here in Arizona,” said Chad Heinrich, NFIB’s Arizona state director.
Heinrich pointed to House Bill 2822, sponsored by Rep. Jeff Weninger, which simplifies and reduces the Business Personal Property Tax.
Heinrich says Weninger’s bill will provide a “nice shot in the arm for small businesses that are making capital purchases this year and for years to come. This policy change may prove to be the biggest driver of increased small business capital investment decisions this legislative session.”
“Compliance with business personal property tax is notoriously cumbersome, especially for the state’s small businesses who don’t have an army of accountants behind them to navigate the Arizona Department of Revenue’s 76-page manual of instructions that explains how to value everything from farm equipment to laptops,” said Danny Seiden, president and CEO at Arizona Chamber of Commerce.
The bill sets the valuation factor at 2.5% for business personal property acquired in tax year 2022 and beyond in taxation classes 1, 2, and 6. These classes include commercial & industrial uses, agriculture, and non-profits.
From cumbersome and complicated to fair, efficient and simple. HB 2822 improves the Ariz. tax code for job creators and grows the economy. Thanks to both parties, sponsor Rep. @JeffWeninger, and Gov. @DougDucey. pic.twitter.com/RbVCCreOqC
— Arizona Chamber (@AZChamber) March 31, 2022
Jobs Report Highlights:
- Small businesses reporting labor costs as the top business problem are at 48-year record high levels.
- A net 49% (seasonally adjusted) of owners reported raising compensation, up four points from February. A net 28% plan to raise compensation in the next three months, up two points from February.
- Seasonally adjusted, 47% of all small business owners reported job openings they could not fill in the current period, down one point from February. Thirty-nine percent of owners have openings for skilled workers and 23% have openings for unskilled workers.
- Sixty-two percent of construction firms reported few or no qualified applicants, one of the tightest domestic labor markets in recent history.
When discussing other good news for Arizona small businesses, Heinrich also pointed to the recent court ruling in which Proposition 208, a massive income tax hike, was declared unconstitutional.