Arizona was recently placed in the top 10 most tax-friendly states and Phoenix was ranked as the number one city in the U.S. for life sciences employment growth. Cost of living and job opportunities are major factors for population growth. So, these economic and employment trends are demonstrating why so many people are relocating to Arizona.
Dorn Policy Group, Inc. is one of Arizona’s top public affairs firms. We are advocacy professionals who strive to obtain the results our clients want. In a growing community, it is important to have your voice heard by key policymakers. Read our blog post below and learn more about Arizona’s recent rankings and the effects these traits might have on population growth.
Top 10 Tax-Friendly States
Kiplinger recently estimated the overall income, sales, and property tax in each state for a married couple with two children, combined wages of $77,000, and $3,000 of other income. They found that Arizona is the 9th most tax-friendly state of the 50 U.S states and the District of Columbia. Low-income taxes were noted as what separates Arizona from other states. Middle-income families don’t pay the state’s lowest rate of 2.59 percent, but they don’t pay a much higher rate at 3.34 percent. Arizona residents pay relatively low property taxes as well. The average property tax on a $300,000 home in Arizona is estimated to be only $1,851 per year. This is below the U.S. average property tax for a home at that price. As part of its budget discussions, the Arizona Legislature is considering accelerating the income tax reforms it passed last year. If passed, the reforms would increase Arizona’s tax friendly rank when compared to other states.
Phoenix is #1 For Life Sciences Growth
The Greater Phoenix area is emerging as a life science hub. Life sciences job growth in Phoenix grew 8.5 percent between 2019 and 2020. The city ended the year with approximately 22,000 jobs in the life sciences sector, the most of any U.S city. Phoenix has outpaced the job growth in other cities, even amid record expansion rates across the industry. The vacancy rate for existing lab and research space all across the United States is at a record low due to a global race for new drug development according to a new report from CBRE. Life sciences companies collectively took over nearly 23.8 million square feet of new lab space across the top 12 life science hub cities at the end of 2021.
With all-time highs in funding, job growth, demand for lab space, and new construction, trends suggest that the field and job market will continue to grow in the coming year. Phoenix-based leadership thinks that the overall idea of Phoenix as a hub for life sciences job growth is still expanding. “Phoenix continues to draw national attention as a hub for cancer diagnosis and treatment,” said First Vice President of CBRE, David Barrett.
How These Rankings Might Affect The State
The job market and various costs affect population growth in every state. Workers are changing jobs more frequently and the availability of life science careers will likely be a large draw for new residents in the Phoenix area. The cost of living also plays into relocation decisions for most people and the financial difference between living in a high-tax state or a low-tax state can be thousands of dollars each year. Arizona’s job market and relatively low tax rate will likely play into population growth for years to come.
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