City of Mesa
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The role of tax policy in building a strong economy
Arizona businesses get a win with lower personal property tax
Last week, I participated in the Greater Phoenix Economic Council’s 2022 Washington, D.C. Executive Mission. The goal of the mission is to meet with federal representatives to promote the importance of economic development and share our communities’ perspective on public policy. We also met with the U.S. Department of Commerce to discuss important economic topics and advance our region’s competitiveness.
These missions to our nation’s capital to meet in person with our elected officials and agency staff are critical to maintaining Arizona’s and Mesa’s position for attracting and retaining companies and quality jobs. And locally as economic developers, we need to promote and support public policy that ensures our communities and state remain competitive.
For example, until recently, Arizona’s business personal property tax has been quite challenging for small businesses due to its complexity. In March 2022, Gov. Ducey dramatically improved the tax code by signing into law HB 2822, a bill that received bipartisan support, which considerably lowers personal property tax liability for business owners by 90% or more by accelerating and simplifying the depreciation schedule for business personal property.
New reforms
HB 2822 sets the valuation factor for Class 1, Class 2(P), and Class 6 of new personal property to 2.5%. Under the new law, all qualifying property classified during or after 2022 is valued at 2.5%, regardless of equipment type or use, creating a low, uniform, and consistent taxable value.
Summaries of each applicable class are as follows:
- Class 1: Properties of shopping centers; golf courses; manufacturers; and most other commercial or industrial property.
- Class 2: Agricultural property and properties of nonprofit organizations.
- Class 6: Property located in a foreign trade or military reuse zone.
Examples of assets eligible under the new law include computers and technology, furniture fixtures and equipment, manufacturing equipment, machinery, warehouse materials handling equipment, restaurant ovens, refrigeration/food storage equipment, office supplies, tractors, sprinkler systems, hay balers, and cotton harvesters.
The new law applies to business personal property classified during or after tax year 2022.
The following table demonstrates how the new law amounts to major savings of well over 90% for many business personal property investments.
Personal property taxes on $10 million of capital expenditures, Class 1 property. 20-year estimates. Source Arizona Commerce Authority
Mesa to host FREE Talent Recruitment Seminar on latest labor market trends and how employers must respond
As part of Mesa’s Talent Recruitment Series, the City of Mesa’s Office of Economic Development (OED) is hosting a FREE in-person seminar featuring Trevor Stokes, CEO of the Partnership for Workforce Innovation, on the factors influencing hiring locally and across the county, and what employers can do to respond to the rapidly changing talent environment. In addition, OED will be sharing the latest survey results on local employers' hiring needs and workforce development resources.
The seminar will be held Thursday, May 26, 2022, from 9:30 AM to 10:30 AM at the Dobson Lecture Hall in the Mesa Contemporary Arts Museum at 1 E. Main St., Mesa, AZ 85201.
“Mesa’s Talent Recruitment Series was created to provide immediate assistance to Mesa employers struggling to fill workforce vacancies,” Mesa Economic Development Director, Bill Jabjiniak stated. “Developing our workforce and maintaining a steady labor pipeline are critical to the success of our businesses and our community’s economic vitality.”
Recently, as part of the Talent Recruitment Series, OED hosted a seminar to introduce free workforce resources to help companies recruit needed talent and learn how to access those resources, market open positions, and develop a pipeline to meet workforce needs. Following that event, OED held a workshop teaching Mesa companies how to maximize their recruiting, onboarding, and employee retention efforts.
The Talent Recruitment Series is part of OED’s research and analysis to build a robust workforce development strategy. The goal is to assist Mesa businesses and support their workforce needs.
Mesa’s Office of Economic Development adds new staff members
In March and April 2022, the City of Mesa Office of Economic Development hired two professionals to join its team – John Ahumada and Rebecca Perks.
John Ahumada joined the City of Mesa’s Office of Economic Development in March 2022 and serves as an Economic Development Specialist. Prior to joining the City of Mesa, John was a real estate investment specialist in Miami, Florida. Over the years, as a consultant, John has worked with various organizations such as Startup Tucson, Startup Chile, and the Belgian Luxembourg Chamber of Commerce on various economic development projects.
Upon receiving his Bachelor of Arts in International Business from Sophia University in Tokyo, Japan, John received his Master of Science in Entrepreneurial Leadership from Babson College. John.Ahumada@mesaaz.gov
Rebecca Perks joined the City of Mesa Office of Economic Development in April 2022 and serves as the Administrative Assistant II with more than 25 years of support staff experience in the resort, marine diesel engine, and real estate industries.
Rebecca was born and raised in Pennsylvania, attending Penn State University pursuing a degree in Math Education. She then moved to Florida and worked for 12 years as sales administrator and executive assistant for MAN Engines and Components, Inc. Most recently, Rebecca was the senior business application specialist for the Arizona Association of Realtors. Rebecca.Perks@mesaaz.gov
Rendering of Launch Pad, coming to Downtown Mesa, fall 2022.
Wondering what is being built at 114 W. Main St.? Co-working space!
Work is underway on Launch Pad, a modern co-working concept in the heart of historic Downtown Mesa at 114 W. Main St. A portion of the old façade and colonnade have been removed in preparation for a bright, open exterior that pays homage to mid-century design. Many historic elements of the building will remain including the original floor to ceiling brick walls. Launch Pad is scheduled to open September 2022.
This co-working space will be a tremendous addition to Downtown Mesa’s small business community and innovation district, joining the likes of LaunchPoint, the City of Mesa’s technology accelerator; Co+Hoots, co-working space; HeatSync, hackerspace; ThinkSport, makerspace; and the forthcoming Studios @ City Center, a partnership with Arizona State University. Launch Pad’s developer is Caliber. The architect and general contractor are Gensler and Wespac. www.DowntownMesa.com/Invest/Innovation-District