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What is Arizona Prop 126? A ban on new or increased service taxes

Arizona Gov. Doug Ducey and his opponent David Garcia both oppose the measure, which is largely supported by Realtors.

Arizona Proposition 126 aims to outlaw any new or increased tax on services that did not exist at the end of 2017.

Those who support Prop 126, also known as the Protect Arizona Taxpayers Act, argue that sales taxes disproportionately hurt low- and middle-class families, and the government imposing such taxes could also hurt small businesses.

Opponents of the measure argue that government needs funding to operate, and cutting off the possibility of sales taxes decreases the number of options for receiving that money.

The majority of funding in support of the proposition comes from realtors, who may fear that there could be increased taxes on their work. Two realtor groups -- Realtors Issues Mobilization Fund and National Association of Realtors -- have spent a total of $8 million to support the initiative.

They also argue that other small businesses could be affected by a service tax, disincentivizing consumers from using services as diverse child care, plumbing and physical therapy. The Arizona Small Business Association supports the measure.

Both Republican Gov. Doug Ducey and his Democratic opponent David Garcia oppose the proposition, as does the Arizona chapter of Americans for Prosperity, a conservative PAC. Even in a state that's fairly economically conservative, elected officials are unlikely to support a measure that will restrict how they can pay for projects they believe the state needs.

Centrist think tank Grand Canyon Institute also released an argument against the measure, saying there are currently enough guardrails on taxation in Arizona, and public schools are primed to suffer if taxation is further handcuffed.

Need more information on the midterm election happening Nov. 6? Check out the 12 News voter guide.

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