Arizona

HB 2003 – coal mining; TPT; repeal

Sponsored by: Rep. Mark Finchem
An Arizona bill to exempt coal used in a power plant on the Navajo Nation from sales tax.

Short Summary

This is a bill to “exempt coal used in a power plant on the Navajo Nation” from an Arizona sales tax “as a way to help make the plant more attractive to potential buyers.” [Bob Christie, “Arizona lawmakers mull tax break for power plant coal,” Associated Press, 02/14/18]

General Description

“Relating to exempting coal from TPT.” [HB 2003 Summary, Arizona House of Representatives]  

Bill Sponsor(s)

Rep. Mark Finchem

Detailed Bill Summary 

The tax cut would “cost the state general fund about $35 million, some of which is passed on to K-12 schools, counties, and cities.” According to environmental groups, the legislation provides “a big subsidy to Peabody Energy coal via a tax break.” [Bob Christie, “Arizona lawmakers mull tax break for power plant coal,” Associated Press, 02/14/18; Sierra Club 2018 Legislative Update #12, Sierra Club, 03/23/18]

Current Status

04/25/18 – Signed by Governor [Bill History for HB 2003, Arizona State Legislature]

Relevant Comments by Public Officials, Public Lands Groups, or Special Interest Groups in Arizona

  • Democratic Senator Steve Farley said during debate on the bill, that to “take taxpayer money and give it to a coal company to try to sweeten the deal so they can get this thing going and keep their money going, to keep their failed business model propped up because we as a state have decided to hand out money to a failing industry to keep it going, that’s just flat out wrong and it’s not going to provide sustainable jobs in the future.” [Debate on HB 2003, Arizona Senate, 04/19/18, (14:55 – 15:18)]
  • “Hopis and Navajos who work at the Kayenta Mine rallied at the Capitol last week to call for the plant to be saved. The coal industry is a major source of revenue for the Navajo and Hopi tribes and provides hundreds of jobs for tribal members.” [Bob Christie, “Arizona lawmakers mull tax break for power plant coal,” Associated Press, 02/14/18]
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