Here’s a look at some impactful Arizona laws that went into effect on Jan. 1
Jan 3, 2025, 5:00 AM
PHOENIX — Multiple new Arizona laws went into effect when the calendar turned to 2025, including several designed to ease economic burdens.
One of the most impactful laws is one that prohibits municipalities from collecting transaction privilege taxes on rental properties.
As a result, renters in dozens of cities across the state, including Phoenix and many of its suburbs, can expect a bit of relief on their monthly housing costs.
While the law might help renters, it is expected to put a dent in city and town coffers. Lee Grafstrom, tax policy analyst with League of Arizona Cities and Towns, told ABC15 it would cost local governments a combined $230 million.
RELATED STORIES
“You have to find some other way to make up that revenue,” Grafstrom told the Phoenix TV station. “Either through raising another tax or raising property taxes. Or the other alternative, which is one that citizens don’t want, which is you end up having to cut services.”
Another new Arizona law aimed at reducing housing costs is one that requires cities to permit the construction of auxiliary dwelling units, known informally as casitas, in urban areas and on all new construction.
“It opens the door for more working-class families to be able to use their own property to say, ‘Yeah, I want grandma or my college student or anyone else to be able to live in my backyard to have their own privacy at either no rent or a very affordable rent,’” state Rep. Analise Ortiz told KTAR News 92.3 FM’s The Chris and Joe Show in May, after the House passed the casita legislation.
Meanwhile, minimum wage workers received a raise to $14.70 hourly, up 35 cents from 2024, on Jan. 1.
The increase is the result of a voter-approved initiative from 2016 that phased in several years of raises and then tied Arizona’s minimum wage to the Consumer Price Index, which measures the rate of inflation.
The state’s minimum wage $8.05 an hour when voters passed the measure.
Voter-approved ballot measures create several new Arizona laws
Additionally, the five ballot measures that voters approved in the November 2024 election went into effect at the start of the year.
Prop 139 created a fundamental right to an abortion until fetal viability, generally accepted as 23-24 weeks, with later exceptions for the life or health of the mother.
Prop 314 made it a state crime to cross from Mexico into Arizona outside a legal port of entry, along with several other initiatives related to immigration and border security.
Prop 311 provides the families of first responders killed in the line of duty with a $250,000 benefit from a state fund that will be created with a $20 penalty for every criminal conviction.
Prop 312 allows property owners to apply for a property tax refund from a governing authority that fails to enforce public nuisance laws.
Prop 313 increases the sentence for a class 2 felony conviction for child sex trafficking to life in prison with no chance for parole.
