Chandler business leaders protested Tuesday outside the state legislature against a recently passed tax hike targeting technology firms. They said the measure would hinder local economic growth and discourage investment in the region’s expanding tech sector.
The protest took place Tuesday morning outside the Arizona State Capitol, where a group of Chandler business leaders gathered to voice opposition to a tax increase recently passed by the state legislature. The measure, which imposes higher taxes specifically on technology companies, was approved last month amid ongoing debates over state revenue and economic development priorities. According to organizers, the tax hike threatens to slow the growth of Chandler’s burgeoning tech sector, which has attracted significant investment and job creation in recent years.
The tax measure, passed by a majority Republican legislature, aims to generate approximately $441 million in additional state revenue by increasing taxes on technology firms, including data centers and software companies.
Among those attending the demonstration were representatives from the Chandler Chamber of Commerce and executives from several local tech startups and established firms. Chamber President Lisa Martinez said the new tax policy “places an undue burden on companies that are driving innovation and employment in our community.” She added that the increase could discourage future investment and expansion plans in Chandler, which has become a hub for data centers and technology services.
The legislation was opposed by Governor Katie Hobbs, who argued the tax hike could undermine Arizona’s competitiveness in attracting and retaining tech businesses. Records show the governor vetoed a related tax conformity bill earlier this year, citing concerns over its impact on economic growth.
Chandler’s tech industry has seen rapid expansion, highlighted by a $2 billion data center project proposed last year, which faced opposition from some community residents but received support from political figures including former U.S. Senator Kirsten Sinema. That project underscored Chandler’s role as a key location for technology infrastructure in the region. Business leaders at Tuesday’s protest emphasized that the new tax hike threatens to reverse this momentum.
The protest included a series of speeches and the distribution of informational materials outlining the potential economic consequences of the tax increase. According to organizers, the tax hike could lead to job losses and reduced capital investment in Chandler’s tech sector. They also expressed concerns about the broader impact on the state’s reputation as a business-friendly environment.
State legislators who supported the tax measure cited the need to address budget shortfalls and fund critical public services. They argued that technology firms have benefited from previous tax incentives and that the new policy seeks to ensure a fair contribution to the state’s revenue base. Supporters of the legislation maintain that the tax hike is necessary to maintain fiscal stability and invest in infrastructure and education.
No immediate response was available from the state legislature regarding the protest. Officials from the Arizona Department of Revenue confirmed the tax increase will take effect at the start of the next fiscal year, with implementation details to be finalized in the coming months.
Business leaders in Chandler have indicated plans to continue advocacy efforts against the tax hike, including engaging with state lawmakers and exploring legal options. The Chandler Chamber of Commerce announced it will hold a series of forums to inform local businesses about the implications of the new tax policy.
The tax increase is part of a broader statewide debate over fiscal policy and economic development, with tensions between the legislature and the governor’s office reflecting differing priorities. Previous tax-related protests in Arizona have focused on various issues, but this marks one of the first organized demonstrations specifically targeting taxation of technology firms in Chandler.
As the new tax takes effect, stakeholders in Chandler’s tech community will be closely monitoring its impact on business growth and investment decisions. Further legislative sessions are expected to revisit tax policies, with potential adjustments under consideration depending on economic outcomes and political negotiations.
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