NFIB Statement on Defeat of Proposition 116

Statement from Farrell Quinlan, the Arizona State Director for the National Federation of Independent Business (NFIB):

“Arizona’s small business job creators experienced a very discouraging and disappointing election night. As the prospects for repealing and replacing the federal health-care law faded, we also learned that Proposition 116 had failed — attracting only 43.5 percent of the vote in Arizona. The NFIB-written constitutional amendment, called the Small Business Job Creation Act, would have rolled back the job-killing personal property tax and spurred small businesses to invest in the new equipment and machinery necessary to sustain new job creation.

“We are grateful to Senate President-elect Andy Biggs for sponsoring the referendum and NFIB-member, small-business owner Doug Click of Arizona Hi-Lift for serving as chairman of the Vote YES on 116 campaign. Moreover, we are thankful for and proud to serve the thousands of small-business owners throughout the state who backed Proposition 116 and support NFIB’s continuing efforts to make Arizona a more job-friendly state.   

“It is hard to amend the Arizona Constitution, and it ought to be hard. We knew more than a year ago when we began drafting the referendum that success at the ballot would be difficult under the best of circumstances. Despite over-performing in fostering those ‘best of circumstances’ by gaining unanimous, bipartisan support in the Legislature and satisfying potential opponents that Proposition 116 was good public policy, we under-performed in making our case to voters.

“Ironically, the lack of opposition to Proposition 116 and its broad support among opinion leaders stubbornly worked against the Vote YES on 116 campaign’s effort to raise enough funds to take our message to a wider audience on television and radio. Its charmed status as a ‘no-brainer’ made it nearly impossible to convince enough potential contributors that giving to the Vote YES on 116 campaign was a more critical investment than other priorities.

“NFIB remains committed to lowering the cost of private investment in job creation in Arizona. We look forward to continuing our excellent working relationships with Gov. Jan Brewer, House Speaker Andy Tobin, Senate President-elect Andy Biggs, Senate Democratic Leader Leah Landrum Taylor, House Democratic Leader Chad Campbell and every lawmaker. As always, NFIB will work to promote and protect the right of our members to own, operate and grow their businesses.”

NFIB is the nation’s leading small business association with 350,000 members nationwide and 7,500 in Arizona and has 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 is available online at www.NFIB.com/newsroom.

Proposition 116’s Fate Awaits Election Day

www.VoteYESon116.com

Facebook: Vote YES on 116

Twitter: @VoteYESon116

As the VoteYESon116 campaign heads into the home stretch, small business job creators are optimistic that Arizona’s voters will pass Proposition 116, the Small Business Job Creation Act. The unanimously-passed referendum would create new jobs in Arizona by rolling back the burdensome annual equipment and machinery tax that’s levied before a small business hires its first worker, makes its first sale or even turns a profit. To keep up on developments with the campaign, visit these sites and share them with your family, friends, neighbors and anyone who values your opinion: 

OFFICIAL RESOURCES

VoteYESon116 – visit the official “yes” campaign website to learn more about the referendum

“What’s on My Ballot? – Proposition 116, Arizona’s General Election Guide 2012” – an official publication of the Arizona Secretary of State’s Office

NEWS COVERAGE

“Voters to decide fate of tax exemption for businesses” – newspaper coverage by the Arizona Republic’s Ryan Randazzo

“Proposition 116 supporters say it would spur hiring” – Cronkite News’ Sarah Pringle explains Proposition 116’s impact on job creation

“Prop. 116 supporters: Lower business property taxes would spur hiring” – wire service coverage at KTAR radio’s website from the Associated Press

“Prop 116: Business tax exemption on ballot” – newspaper coverage in the Yuma Sun by Capitol Media Service’s Howard Fischer

NEWSPAPER EDITORIALS

“Our position… Proposition 116: Support”Arizona Republic, October 18, 2012

“Courier: Yes on Proposition 116”Prescott Daily Courier, October 20, 2012 

“Proposition 116 — Yes”Casa Grande Dispatch, October 24, 2012 

“Vote for the good of business”Inside Tucson Business, October 12, 2012

“Proposition 116 would stimulate state economy”Yuma Sun, October 4, 2012

 

VIDEOS

VoteYESon116 “I’ll Hire” Commercial

VoteYESon116 “Cupcake” Commercial

“Vote 2012: Proposition 116” – a 7 minute 23 second video from Eight, Arizona PBS’s Arizona Horizon program on Proposition 116 with NFIB’s Farrell Quinlan

“Arizona Secretary of State Ken Bennett’s 2012 Ballot Measure Town Hall. Proposition 116 – Taxes on Business Equipment & Machinery” – a two-minute video on why voters should pass Proposition 116 featuring NFIB/Arizona’s Farrell Quinlan

“Proposition 116 increases tax exemption for businesses” – a 1 minute 26 second video from Cronkite News reporter Mugo Odigwe features small-business-owner Margie Long of Hot Air Expeditions and NFIB’s Farrell Quinlan on the effects of Proposition 116 on job creation

ORGANIZATIONAL ENDORSEMENTS

Americans For Prosperity – Arizona
American Rental Association – Arizona
AMIGOS (Arizona Mining and Industry Gets Our Support)
Arizona Cattle Feeders’ Association
Arizona Cattle Grower’s Association
Arizona Chamber of Commerce and Industry
Arizona Farm Bureau Federation
Arizona Multihousing Association
Arizona Technology Council
Chandler Chamber of Commerce
Fountain Hills Chamber of Commerce
Goldwater Institute
Greater Phoenix Chamber of Commerce
National Federation of Independent Business – Arizona
Nogales-Santa Cruz County Chamber of Commerce
Printing Industries of Arizona
Tempe Chamber of Commerce
Tucson Hispanic Chamber of Commerce
Tucson Metro Chamber of Commerce
United Dairymen of Arizona
Western Growers

Job Creators Cheer Referral of Proposition 116

Small Business Job Creation Act rolls back job-killing equipment and machinery tax

PHOENIX, Ariz., April 25, 2012 — The Arizona Secretary of State today received transmission from the Arizona Legislature of a crucial ballot referendum designed to spur new job creation and economic development. The state constitutional amendment, called the Small Business Job Creation Act, is positioned to be on Arizona’s November 6, 2012 General Election ballot as Proposition 116.

“Arizona’s small business job creators have heard loud and clear from their state legislators that help is on the way to rollback the job-killing equipment and machinery tax,” said Farrell Quinlan, state director for the National Federation of Independent Business who drafted the referendum with Senate Majority Leader Andy Biggs and other lawmakers.

“The heavy tax burden we place on small business’ equipment and machinery is self-defeating and anti-growth because it punishes the very investment in job creation that Arizona needs to fuel our economic recovery,” Quinlan said.

The Proposition 116 referendum, enumerated Senate Concurrent Resolution 1012 in its legislative form, seeks to amend the Arizona Constitution to reset the personal property tax exemption for new equipment and machinery purchases to an amount equal to the earnings of 50 Arizona workers, approximately $2.4 million. The current constitutional exemption is $50,000 indexed to inflation since 1996 or $68,079 in Tax Year 2012.

“We are very encouraged about Proposition 116’s ultimate success at the ballot box due to the unanimous bipartisan support it received from legislators. It’s a real testament to the soundness of this public policy proposal that every Republican and Democrat lawmaker voted for it. Proposition 116 proves the adage that good policy makes for good politics,” Quinlan concluded.

The unanimous legislative support for SCR 1012 is a rare example of bipartisan consensus from the contentious and often bitterly partisan 50th Arizona Legislature. The Arizona Senate passed the legislation 30-0 on February 16, 2012 and the Arizona House of Representatives passed it 51-0 with eight absent and one vacancy on April 23, 2012.

Proposition 116 must garner 50 percent plus one vote of those voting on the measure this November to amend the state constitution. If passed, the new provisions will affect personal property purchased in 2013 and thereafter while personal property already on the tax rolls will remain unaffected.

According to state law, the Secretary of State will make official the designation of the Small Business Job Creation Act referendum as Proposition 116 after the petition filing deadline passes for citizen initiatives on July 5, 2012. The Secretary of State is required to assign numbers to propositions in the order the measures are filed with their office. SCR 1012 was the third referendum filed for the 2012 ballot following the two measures sent by the Legislature in 2011 that will be designated Proposition 114 and Proposition 115 respectively in accordance with statute.

NFIB has already begun organizing a campaign committee to support the passage of Proposition 116. Those interested in joining that effort should contact NFIB’s Arizona office at (602) 263-7690 or send an email to farrell.quinlan@nfib.org.

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NFIB is the nation’s leading small business association with 350,000 members nationwide and 7,500 in Arizona and has 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 is available online at www.NFIB.com/newsroom.