Every year, the Arizona Legislature introduces dozens of bills that can impact the business community.
As the 2025 legislative session unfolds, here are the bills the Rose Law Group Lobbying and Government Affairs Department is tracking:
Water and Development Regulations
SB1249: Groundwater Pumping; Measuring; Reporting This bill requires nonexempt well users to install state-approved water-measuring devices and mandates annual reporting of groundwater usage. These measures aim to improve water management across Arizona and extend reporting requirements beyond Active Management Areas. Businesses dependent on groundwater, particularly in agriculture and development, may face increased compliance costs.
HB2481: Adequate Water Supply; Statewide Requirements HB2481 requires developers to prove a 100-year water supply for new subdivisions, even outside Active Management Areas. This legislation imposes stricter guidelines on water adequacy documentation, repeals exemptions, and developers in water-scarce areas may experience higher planning costs.
HB2025: Residential Lease Communities; Water Requirements This bill prohibits the approval of building permits for detached residential units in lease communities unless there’s a written water service commitment.
Tax and Financial Legislation
HB2365: Corporate Income Tax Disclosure This bill mandates annual public disclosure of corporate income tax data for publicly traded companies operating in Arizona. It aims to inform public discussions on corporate contributions and tax equity.
HCR2012: Income Tax Rate Reduction HCR2012 proposes a flat 2% state income tax rate by 2027, applying to individuals, trusts, estates and small businesses.
HB2081: Income Tax Subtraction; Tipped Wages HB2081 allows taxpayers to subtract reported cash tips from taxable income, providing relief for tipped workers in industries like hospitality and service.
HB2118: TPT Sourcing; Business Location This bill clarifies that the Transaction Privilege Tax is sourced based on the seller’s business location. It seeks to reduce ambiguities and ensure consistent tax application across transactions.
HB2389: Business Personal Property; Exemption HB2389 increases the property tax exemption threshold for business assets, reducing administrative burdens and fostering a more business-friendly environment.
Housing and Development
SB1229: Planning; Home Design Restrictions This bill restricts municipalities from limiting homebuilders and buyers’ rights to choose features like floor plans and designs, reducing municipal authority over architectural standards and minimum lot sizes.
HB2595: Municipal Attainable Housing Development HB2595 allows cities to mandate that up to 20% of units in new multifamily housing developments with at least 20 units meet the lease price for “attainable residential housing” (defined) for up to 20 years, encouraging affordable housing initiatives.
SB1150: State Land; Exchanges SB1150 amends the process and conditions under which state trust land may be exchanged for other public or private lands. Exchange transactions must be approved by the Governor instead of the voters. (Counterpart to SCR 1006.)
HB2091: Land Division; Applicant Submissions; Review This bill introduces new disclosure requirements for land division and building permit applications, ensuring compliance with state subdivision laws.
HB2574: Small Land Subdivision; Requirements HB2574 allows county boards to adopt ordinances for creating small subdivisions of six to ten lots, each two acres or more in size, with public reports addressing easement details, utilities and water access.
Vacation Rentals
SB1141: Violations; Penalties This bill allows local governments to suspend permits for properties with repeated violations and introduces stricter penalties for offenses like unauthorized events or noise complaints.
HB2558: Population Caps HB2558 permits municipalities to cap the number of vacation rentals and require permits, insurance and neighbor notifications to manage their impact on communities.
HB2316: Short-Term Rentals; Property Classification This bill reclassifies short-term rentals under a distinct tax category, differentiating them from long-term residential properties.
Cryptocurrency and Financial Innovation
SB1062: Cryptocurrency as Legal Tender This bill recognizes cryptocurrencies like Bitcoin and Ethereum as legal tender for debts and taxes, promoting financial innovation in Arizona.
HB2387: Cryptocurrency Kiosk Licensing HB2387 introduces licensing and fraud prevention measures for cryptocurrency kiosk operators, enhancing consumer protection in the growing crypto ecosystem.
SB1095: Central Bank Digital Currency Ban This bill proposes a ban on the use of federally controlled digital currencies, promoting alternative decentralized financial systems, while maintaining the use of traditional legal tender, such as cash and coins.
HB2683: Cash Acceptance Requirement HB2683 requires retail businesses to accept cash for transactions under $100 to aid consumers without digital payment access.
“By engaging with policymakers, stakeholders can navigate these changes and seize new opportunities in the state’s dynamic policy landscape,” says Jordan Rose, Rose Law Group founder and president.
Liz Goodman, chair of Rose Law Group’s Government Affairs Department, has more than 15 years’ experience in law and government relations. Goodman holds a J.D. from Albany Law School, where she developed an interest in public health and policy through her work serving clients living with terminal illnesses and representing inmates in civil suits, often involving access to health care.
Madelaine Braggs, chief digital officer for Rose Law Group, holds a Bachelor of Arts in Journalism and Mass Communication from the Walter Cronkite School of Journalism at Arizona State University, where she focused her education on both broadcast news and public relations. Her professional experience includes being a reporter and producer for NBC News Radio, helping launch the Black Information Network with iHeartMedia, and PR for local Phoenix small businesses.
Fun Fact: Rose Law Group was the first law firm in the country to accept Bitcoin as payment back in 2009!
