Arizona Small Business Owners: No on 204

NFIB steadfast in opposition to new, permanent sales tax increase

PHOENIX, Ariz., Oct. 3, 2012—The National Federation of Independent Business today reaffirmed its long-held and principled opposition to raising Arizona’s sales tax rate to one of the highest in the nation by joining forces with the campaign to defeat Proposition 204.

“Arizona needs jobs and new investment, not higher taxes that rob taxpayers’ purchasing power and depress retail sales,” said Farrell Quinlan, Arizona state director for the National Federation of Independent Business. “Proposition 204 is a cynical money grab by government unions and special interests that seeks to exploit Arizonans’ sincere support for closing the achievement gap in our K-12 education system.”

Proposition 204 is an Arizona ballot measure that would increase Arizona’s state sales tax rate by 18 percent when the current temporary one-cent sales tax expires in June 2013. Its passage will cement Arizona’s sales tax rate as the second highest in the nation behind Tennessee—a state, unlike Arizona, with no income tax.

“Proposition 204 earmarks and diverts more than a billion dollars a year to a series of unaccountable and failed bureaucracies that for good measure includes a $100 million taste for a rabble of favored special interests. The children are the last thing Proposition 204 is for,” Quinlan said. “It provides no accountability or no real reform and little of the money will go to teachers and into the classroom where it is needed most.”

NFIB, the state’s leading small business association with 7,500 Arizona members, has consistently opposed efforts to raise Arizona’s transaction privilege (or sales) tax rate during these recessionary times with high unemployment. In 2010, the organization established its principled stance against raising taxes during this recession by opposing passage of Proposition 100, the temporary tax increase set to expire on May 31, 2013.

“One of the main reasons NFIB’s members opposed Proposition100 was their since-vindicated fear that the temporary tax would be converted into a permanent tax. Sadly, Proposition 204 proves their fears were justified.” Quinlan concluded. 

NFIB joins a growing list of business organizations supporting the Vote NO on 204 campaign. Visit to learn more about Proposition 204.

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NFIB is the nation’s leading small-business advocacy association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small- and independent-business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information about NFIB is available online at