A Boost for Some, Not for All: Why Arizona’s Tax Exemption Misses Micro-Entrepreneurs

Reporter: Zion Kanyana

PHOENIX-When Arizona lawmakers raised the business property tax exemption this year, they said it would give small business owners room to grow. But for entrepreneurs like Jai Bashir, that promise feels distant. 

Bashir runs Jaiccessories, an African-inspired jewelry and accessory brand rooted in Phoenix. She mainly sells through pop-up shops at community events, while the majority of her sales come from her online store. 

“When I first heard about the increase in some type of exemption, I thought it would possibly be a help,” Bashir said. “Then I realized it doesn’t really affect owners like me, it just helps folks who already have more on the table.”  

Arizona Senate Bill 1069, passed on February 11th, 2025, increases the amount of business personal property exempt from taxation, raising the cap from $225,000 to $500,000. This change, set to take effect in the 2026 tax year, was promoted by lawmakers to help provide relief for small businesses facing rising costs.  

This relief primarily benefits businesses with larger operations or more property, like restaurants, manufacturers, or those with larger inventories. However, for small players like Bashir, who primarily operate online or out of their homes, the difference is minimal. 

Owner of T-Rex Leather, Randy Graham, shares a similar sentiment to Bashir. His workshop takes up a corner of his apartment, where he crafts leather goods for online orders. 

“They keep saying this law helps small business owners, but I don’t even have $50,000 worth of equipment,” Graham said. “If they want to really help the little guys, they've got to find ways to help the microbusinesses too … especially black businesses.” 

Accountant and Owner of Tarajii PLLC, Joan Young, has experience with helping entrepreneurs with tax filings. The structure of SB 1069 only favors businesses already positioned to benefit, Young said. 

“This doesn’t really do anything for businesses that don’t have storefronts or heavy equipment,” she added.

According to the Arizona Department of Revenue, the exemption applies only to property classified as “used in trade or business.”

While these are things that some smaller businesses may have, for those that don’t, this expanded salary cap with extra requirements simply raises the ceiling for certain requirements to be met. 

“We’re a part of the small business story too,” Bashir said, “But sometimes it feels like we’re not the small business we’re talking about.