Date: May 28, 2019

After approving an $11.8 billion budget on Monday evening, the Arizona Legislature adjourned for the year early this morning. Unfortunately, the budget was being held hostage for a policy bill, which is unprecedented but proved to be successful.

Among the biggest achievements in the budget was WG's priority bill, the sales tax clarification for fertilizers and pesticides used in commercial ag production. Effective December 1, 2019, these products will be exempt from the states sales tax, saving nearly $15 million annually for farmers.

An additional $20 million of funding for the Central Arizona irrigation districts was also included in the budget to help them comply with the Drought Contingency Plan (DCP). There is a payback mechanism included to allow the state to be reimbursed if the feds cover the costs as originally intended in the DCP.

The state also provided $400,000 in general fund money to pay the rent for the State Ag Lab, rather than raiding industry funds to make the payment.

For more information on Arizona’s recently passed budget and adjournment, please contact AnnaMarie Knorr at (602) 451-0658.

WG Staff Contact

AnnaMarie Knorr
Manager, Arizona Government Affairs

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