Around the country, the “war on cars” has become apparent. From New York’s congestion pricing scheme to the onslaught of road diets and protected bike lanes to “reallocate” the public space away from cars, there is hardly anywhere you can travel without experiencing the increased hassle and cost of driving your personal vehicle.
Despite the Trump administration’s efforts to reverse the woke transportation trends at the U.S. Department of Transportation under former Secretary Pete Buttigieg, many state and city governments remain committed to punishing drivers.
One specific tool being used to implement the anti-car, woke transportation agenda is vehicle mileage limits and taxes. For example, in Washington State, they passed a law that sets a target of reducing vehicle miles traveled per capita by 50% by 2050. Their department of transportation is empowered to create policies and strategies that would effectively force people to give up their cars. And of course, for our neighbors to the West, California lawmakers have proposed a mileage tax or “road charge” determined by how many miles a person drives in an effort to reduce carbon emissions and endlessly subsidize their failed transit system. Implementing this would require invasive measures such as reporting odometer readings or installing “special plug-in devices.” This kind of Orwellian intrusion on our freedom to travel privately has no place in any American city, even in California.
This week, Arizona legislative Republicans took a huge step to protect our state from these insane California-style, anti-car policies. With the passage of SCR1004 (the Freedom to Move Act), sponsored by Senator Jake Hoffman (Queen Creek), Arizona voters will decide in November 2026 whether to enshrine a first-in-the-nation constitutional protection against taxing, tracking, and limiting our vehicle miles traveled.
“The Arizona Free Enterprise Club has been fighting for the Freedom to Move Act since 2023,” said Scot Mussi, the Club’s President. “We are thrilled that our Republican-majority legislature chose to give voters the ability to protect their way of life by preserving our freedom to travel by personal vehicle in our state.”
President Trump and Secretary Duffy are doing critical work at the federal level to reverse the wokeness that has infected transportation policies and funding at the department and across the country. Now Arizona is leading the way on showing other states how they can pass their own protections for drivers and keep their states free too.
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Every time the Republican-controlled legislature considers cutting taxes, the biggest obstacle is the taxpayer-funded lobbyists representing cities, towns, and counties. They come down to the legislature year after year accusing lawmakers of “defunding” local government. And, of course, it is always police, fire, and public safety on the chopping block and never DEI programs, art projects, or other unessential and unnecessary spending projects.
The problem with this narrative is that it is completely false. Cities and towns are flush with cash and have actually received enormous windfalls, not cuts, from the legislature. The result has been hundreds of millions in new revenue for the cities in just the last 6 years. Most of it from two sources—online sales and enhanced state shared revenue.
Online Sales Tax Windfall
In 2019, the legislature passed legislation responding to the Wayfair decision, allowing the state and local governments to tax online sales from sellers outside of this state. At the time, it was sold as a “meager” $85-million-a-year tax increase. But now, five years since the legislation was enshrined into law, taxpayers are doling out over one billion dollars in total collections each year to state and local government.
The most recent full fiscal year shows that cities alone collected $250 million directly from taxing online sales in FY24. They pocketed an additional $70 million in shared revenues from the state’s collections, resulting in a net increase of $320 million in revenue that they did not have five years ago.
Income Tax Windfall
If that wasn’t enough, in 2022 the legislature passed landmark tax cuts benefiting every tax-paying Arizonan, consolidating our previous four bracket income tax rates into one, single bracket of 2.5%. At the time, the cities claimed it would bankrupt them. Why? Because cities and towns receive 15% of state income tax collections, known as Urban Revenue Sharing (URS). So, the legislature increased that to 18% to hold cities “harmless.”
The cities like to claim that the 18% has barely held them harmless, going as far as claiming that they think they still lost a little revenue in the deal. But, five years ago, URS totaled $750 million. Last year? $1.5 billion. In other words, the share of income tax cities receive has doubled in the course of just five years. How many Arizona residents have seen their income double in just five years?
This increase was not anticipated. The Arizona budget five years ago projected that cities and towns would be receiving roughly $900 million by now, not nearly a billion and a half. This means they are reaping a windfall compared to what was anticipated in the amount of $600 million. Not only were they completely held “harmless,” they have far outpaced expected revenue growth.
That’s $320 million from taxing online sales and a $600 million windfall from income tax collections, for a total windfall of $920 million.
Municipal Budgets Are Out of Control
As city revenues from the state have exploded, so has the size of their budgets. If the state had defunded the cities, we would expect to see budget cuts. Yet year after year, municipalities have seen their budgets grow bigger and bigger.
Just take a look at the city of Phoenix. In 2019, Phoenix had a General Fund budget of $1.39 billion. Five years later, their budget has nearly doubled to a whopping $2.13 billion! It’s obvious that no amount of revenue can satiate their appetite to spend, evident by their current attempt to impose another tax increase on their already overtaxed residents to avoid any sort of fiscal sanity.
And yet, they continue the same talking point and continue to send their lobbyists down to the capitol to block commonsense taxpayer protections, all on the taxpayers’ dime.
This year they are opposing Senate President Peterson’s bill (SB1013) that would require cities, towns, and counties to obtain a 2/3 majority before raising taxes and fees, a policy that applies to the legislature, and now to the people, who must get to a 60% vote threshold on the ballot to raise taxes after the passage of Prop 132 in 2022. Though the cities might bank on a veto from Katie Hobbs, President Petersen has also introduced his bill as a referral to the ballot, SCR1008.
The cities should be careful in their opposition. If Hobbs vetoes the bill, the voters will likely support it on the ballot, putting the protection behind the Voter Protection Act, which means they won’t be able to change it in the future without going back to the ballot.
Instead of spreading misinformation about being “defunded,” the cities should tackle their own bloated budgets.
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
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PHOENIX, ARIZONA – Tonight, voters in the City of Tucson rejected the Safe & Vibrant City ballot measure. This proposition would have increased sales taxes by a half-cent, accumulating approximately $80 million in revenue over each of the next ten years. Scot Mussi, President of the Arizona Free Enterprise Club, released the following statement:
“Voters from all sides of the political aisle made the correct decision in Tucson today. This tax increase was another failed attempt by Tucson’s radical leaders to take more tax dollars from hard-working men and women to fund an insatiable leftist agenda. We have seen over the years how Tucson officials have embraced globalist environmental, energy, and social justice propaganda and policies to steer their municipality – and even our state – into that camp. Tonight, Tucson voters rejected these efforts, rightly deciding to keep their tax dollars for themselves.”
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
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PHOENIX, ARIZONA – Yesterday, the Arizona House of Representatives Committee on Ways and Means approved HCR 2035 – the freedom to move ballot referral. The measure passed along party lines. If given the green light by both the Arizona House and Senate and a majority of voters in November 2026, the proposal would amend the constitution to prohibit the state government from tracking, taxing, or limiting miles of travel.
“As we have seen in other states, governments left to their own devices will succumb to radical attempts to track, tax, or limit their citizens’ transportation miles,” said Scot Mussi, President of the Arizona Free Enterprise Club. “These environmental schemes have no place in a free and prosperous society. In this divided state government, it is critical for our Republican-led Legislature to proactively send this constitutional amendment to the voters to protect our state from these authoritarian policies. I’m thankful to the lawmakers who have supported this bill, and I look forward to seeing it pass the full House in the near future.”
HCR 2035 is the first of its kind in the nation. As a constitutional amendment, it would prohibit the state, cities, towns, and counties from imposing a Vehicle Miles Traveled tax and limiting or monitoring vehicle miles traveled by an individual – whether they are using a gas-powered car or an electric vehicle. If approved by the Arizona House and Senate, the measure would then be transmitted to the Secretary of State to be included on the November 2026 General Election ballot to be considered by voters, bypassing the Governor’s Office.
Last month, the Senate Government Committee approved the mirror version of the legislation, SCR1004.
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.
PHOENIX, ARIZONA – Yesterday, the Arizona Senate passed SB 1013, which protects hardworking taxpayers in counties, cities, and towns from those jurisdictions raising taxes and fees that a supermajority of the relevant local officials did not approve. The proposal was sponsored by Senate President Warren Petersen.
“For over three decades, Arizona voters and their elected officials in the state legislature have expressed their strong preference to keep taxes and fees as low as possible,” said Greg Blackie, the Director of Policy for the Arizona Free Enterprise Club. “With Proposition 108 and Proposition 132, voters have time and again voted to prevent the state and themselves from raising taxes or fees without a supermajority in support. Despite this, many counties, cities, and towns continue to extract taxes and fees from citizens through edicts by faceless bureaucrats. Thankfully, legislators realize the importance of protecting the financial interests of the men, women, and children they represent by applying to the same standard to all jurisdictions.”
Despite counties, cities and towns protesting these proposals, complaining that the legislature is cutting local funding, these jurisdictions are flush with increasing financial revenues. Just this past year, cities alone have benefited from $315 million of new revenue from the collection of online sales tax.
In 1992, Arizona voters passed Proposition 108 to prevent the legislature from increasing taxes without a two-thirds majority.
In 2022, Arizona voters passed Proposition 132 to require a sixty percent threshold on voter initiatives to approve any tax increase on the ballot.
There is also a referral – SCR 1008 – moving through the Arizona Legislature at this time. SCR 1008 sends the policy of SB 1013 to Arizona voters for an up-or-down vote in the November 2026 General Election in the event that Governor Hobbs vetoes a bill sent to her Office. This ballot measure will be considered by the Senate Government Committee this week.
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.
As President Trump gets to work cleaning up Joe Biden’s failed economy, the last thing the people of Arizona need is to be sending their hard-earned dollars to woke Hollywood. But that’s exactly what’s happening.
Thanks to a law passed in 2022, movie companies that film in Arizona will begin receiving refundable tax credit subsidies this year—up to 15 percent if they spend up to $10 million in production costs, 17.5 percent if they spend between $10 million and $35 million, and 20 percent if they spend over $35 million. Then, to top it all off, these movie companies can get an additional 2.5 percent if they meet other criteria.
But here’s the real kicker. The keyword in all of this is “refundable.” This essentially means that if a movie company qualifies for more credits than they owe in taxes, the State of Arizona sends them a check!
So, how much does this outrageous tax scheme cost the people of Arizona?
Up to $125 million each year!
For that kind of money, there must be at least some kind of return on this investment, right? Nope.
If a company comes to Arizona, films a movie, mentions our state in the credits but decides not to release or distribute the film, it still receives the money.
Yes. You read that right. Arizona taxpayers could be funding Hollywood movies that won’t ever see the light of day. Who came up with this scheme?
This is not only absurd, it’s unconstitutional. That’s why the Goldwater Institute filed a lawsuit against these Hollywood handouts last week.
The Arizona Constitution’s Gift Clause is clear. The state cannot handout subsidies or cash for private purposes unless taxpayers receive a direct benefit. And the Arizona Supreme Court even ruled in 2021 that the government cannot include “anticipated indirect benefits” such as projected sales and tax revenue as part of the consideration with a private party under the Gift Clause in the Arizona Constitution. In other words, Hollywood dazzling our state’s leaders with projected economic development leading to increased tax revenue is an “irrelevant indirect benefit” that can’t be included in the consideration.
While Goldwater litigates the issue, the Arizona legislature needs to get to work as well. Movie production is a multi-billion-dollar industry. They do not need a subsidy. And if that’s not enough of a reason, consider this. Our state has been down this road before.
Years ago, Arizona lawmakers passed an “incentive” program similar to this one that cost us millions of dollars. And guess what happened? It offered no benefits to the people of Arizona and was allowed to expire. On top of that, other states like New York, Louisiana, Georgia, Connecticut, and Massachusetts have enacted Hollywood subsidies. But a recent study showed that despite $10 billion in taxpayer spending, there wasn’t even a statistically significant impact on employment.
It’s time to stop this terrible tax policy in our state. The people of Arizona don’t want to subsidize Hollywood’s woke movies while thousands of liberal California voters are shipped to our state. Arizona’s lawmakers need to do taxpayers a favor and repeal this awful program before the court is forced to shut it down.
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.
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