PHOENIX, ARIZONA — BOMA Greater Phoenix, the industry group that advances the commercial real estate industry through advocacy, influence, and knowledge, has named Arizona Sen. J.D. Mesnard and Arizona Rep. Ben Toma as its 2021 Legislators of the Year for their work on a flat income tax rate that affects commercial property owners.
Mesnard, (R) Dist. 17, and Toma, (R) Dist. 22, were the architects of the $1.3 billion tax cut package in the 2021 Arizona Legislative session that will move Arizona to a 2.5% flat income tax rate and for BOMA/commercial property owners, reduced the commercial property tax assessment ratio from 18% to 16% over four years.
This property tax change will make Arizona more competitive regionally for large businesses/employers relocating. Changes were needed as Arizona has one of the highest commercial property tax rates regionally and across the country.
“The whole idea in trying to lower the commercial property tax rate is to make us more competitive as we see businesses fleeing California for some of our competitor states,” said BOMA Greater Phoenix Executive Director Farrell Quinlan. “We need to make our rates more competitive and make Arizona more attractive. We really don’t have the kinds of incentives that a state like Texas offers. This legislation is extremely important to the state’s commercial real estate industry.”
The awards were presented by BOMA Greater Phoenix Advocacy Committee Chair and Board Governor Susan Engstrom.
The Advocacy Committee monitors, studies, and recommends policy and advocacy strategies on legislative and regulatory matters that affect the commercial real estate industry. A key driver of these policy determinations is to find ways to make Arizona more economically competitive.
Usually, that is in the form of pursuing policies to reduce uncompetitive high property tax rates, supporting incentive tools for job recruitment, supporting efforts to lessen onerous regulation and litigation to our members, and opposing mandated cost increases on the industry.
PHOTO: Arizona Sen. J.D. Mesnard with BOMA Greater Phoenix Advocacy Committee Chair Susan Engstrom addresses the association’s membership upon receiving his 2021 Legislator of the Year Award.