State lawmakers are poised to approve huge tax cuts for business this week — but delay them from taking effect.
A deal announced this morning between Gov. Jan Brewer and Republican legislative leaders would:
• Cut the corporate income tax rate from just below 6 percent to 4.9 percent.
• Allow some multi-state corporations to pay no corporate income taxes at all.
• Reduce the figure used to compute property taxes for all businesses by 10 percent.
• Permit companies to write off new equipment purchases faster, reducing their state income taxes.
Brewer said the plan includes an increase in how much of local school taxes for homeowners are paid by the state. That is designed to ensure that the reduced property taxes paid by business are not shifted to homeowners.
House Speaker Kirk Adams, R-Mesa, said the changes will send a strong message to companies that Arizona is an attractive state to do business.
Adams acknowledged the move comes as state lawmakers continue to debate and approve controversial measures aimed at illegal immigrants, measures that have gained national attention. But he said corporate finance officers deciding where to relocate will look at the bottom line and not side issues like these.