Proposition 116 would allow small businesses a large tax break on any new machinery or equipment. This proposition is known as the Small Business Job Creation Act.
Supporters say they believe it would spur hiring.
“Proposition 116 would exempt the value of equipment and machinery equal up to the wages of 50 Arizona workers, making it more likely Arizona businesses will hire new employees," said Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry.
Those opposed say they worry about what the business tax break would do to homeowners.
“Opponents to Proposition 116 worry that the amendment could unfairly shift the property tax burden to homeowners while simultaneously reducing support in the small business community,” said E.J. Perkins, a policy analyst with the Morrison Institute for Public Policy at Arizona State University.
Currently, businesses get a tax break on $68,079 on equipment purchases. The proposition would increase that to $2.4 million for equipment purchased in the 2012-13 fiscal year and beyond. The old rate would remain for personal property already in place.