Katie Hobbs says repealing rental tax would “cripple cities”

PHOENIX — Democratic Governor-elect Katie Hobbs acknowledged during a Wednesday interview that she will oppose legislative efforts to prohibit local jurisdictions from levying rental taxes.

Asked about Republican lawmakers who want to “get rid of the rental tax,” the governor-elect expressed concern that such a proposal would reduce the government’s revenue.

“It’s something to talk about, but it was a core part of my former opponent’s plan and it’s something that would really cripple cities in terms of their ability to provide public safety for their residents and not something that would provide significant relief for those renters,” Hobbs said on Arizona PBS.

She appeared more open to a follow-up question about “a complete ban of the food tax,” stating that “I’m not going to say no to anything if there’s a way to provide relief for Arizonans.” The Democrat added that the Arizona Commerce Authority “has done a lot to attract business” through “tax incentives” but that the state should not be “robbing Peter to pay Paul.”

Hobbs pledged to taxpayers during her campaign victory speech in November that she would “put more money back in your pockets” as governor.