Gov. Katie Hobbs has vetoed a bill that would have prevented cities from taxing residential rentals.
Hobbs said the bill had no enforceable mechanism that would ensure that savings would go from landlords to tenants.
However, state Republican Sen. Steve Kaiser said the measure did include language that would send those savings to the renter.
"When you have a landlord and a tenant, there's a contract. And it says 'This is your rent and here's the tax underneath it and this is your total rent.' Well, when the tax goes away, it just goes away for the renter," Kaiser said.
Hobbs added that the bill would set aside $270 million for cities in lost revenue, calling it fiscally irresponsible.
