Arizona voters have rejected a tax incentive referendum that would allow businesses to upgrade their old equipment and purchase high-tech equipment without paying additional personal property taxes on the new equipment.
Proposition 116 called for the exemption on value of equipment and machinery subject to property tax would increase from the current inflation-adjusted amount of $68,079 to $2.4 million for newly acquired equipment and machinery. [Read the full proposition]
The referendum is also known as the Small Business Job Creation Act. It would have amended Article IX, section 2, of the Arizona Constitution.
"Proposition 116 will enable our small businesses to be more competitive in the unforgiving global marketplace," said Doug Click, chairman, Vote YES on 116 Committee. "It will unleash our small business job creators to 'do their thing' and build a stronger, more prosperous Arizona in the process."
Groups championing the measure included the Arizona Farm Bureau Federation, the Arizona Chamber of Commerce and Industry and the Arizona Cattlemen's Association.
There were no filed arguments against the proposition.
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