Surprise Residents Face Impact as Gov. Hobbs Vetoes Firearm Tracking Bill, Election Rules Change, Signs Disaster Tax Relief

Governor vetoes two bills, signs one that could ease tax burden after disasters

Gov. Katie Hobbs vetoed two bills on Monday that would have altered Arizona's firearm tracking system and election procedures manual. She also signed a third bill into law that could spare Surprise property owners from immediate tax reclassification after a fire, flood, or other natural disaster.

The vetoes and the signing mark a day of decisive action at the Statehouse as the new fiscal year approaches.

Firearm tracking veto: SB 1058

SB 1058 would have banned government registries of privately owned firearms or firearm owners. The bill also would have prevented payment card networks from requiring or encouraging the use of a merchant category code that identifies firearm retailers separately from other businesses.

Advocates said the bill would protect the data privacy of legal gun owners.

Hobbs rejected the measure. She said merchant category codes are essential for law enforcement.

"Like I said when I vetoed the same legislation last year, merchant category codes are vital tools that help law enforcement crack down on illegal gun trafficking to transnational criminal organizations," Hobbs said in her veto letter.

She added: "This recycled proposal would make it harder for law enforcement to catch violent criminals."

The bill would have had exceptions for criminal investigations, prosecutions, or records required by law. But it would have stopped banks, payment processors, and other businesses from assigning gun-specific merchant category codes.

Election procedures veto: SB 1237

SB 1237 would have changed how the Arizona Elections Procedures Manual is updated. The manual outlines the rules and procedures county election officials must follow when carrying out Arizona election laws.

Under current law, the secretary of state submits the manual to the governor and attorney general for approval every other year. Adrian Fontes, the current secretary of state, is responsible for the updates.

The bill would have added a new step. It would have required the secretary of state to consult with county recorders and the leaders of the Legislature's elections committees before making changes.

Hobbs vetoed the bill.

"There is no need for a statute requiring consultation with specific legislative members," Hobbs said in her veto letter. "All legislators are welcome to submit comments on the draft manual during the public comment period that I began when I held the office of secretary of state."

The Elections Procedures Manual has been the subject of years of litigation across Arizona. Changes to the update process could affect how election rules are implemented in Maricopa County and elsewhere.

Disaster tax relief signed: SB 1294

On the same day, Hobbs signed SB 1294 into law. The bill changes how county assessors handle property destroyed by a fire, flood, or other natural disaster.

Under the new law, a county assessor can keep a property's existing tax classification for up to five years after a disaster. The classification remains in place until the property's use clearly changes.

That matters because a property's classification determines how it is taxed. The law could help property owners avoid an immediate tax spike while they rebuild or decide what to do with damaged land.

The law applies retroactively to September 13, 2024.

Surprise has faced repeated threats from wildfire and severe monsoon flooding in recent years. Property owners in the city could benefit from the new classification protection if their homes or land are damaged.

What happens next

Republicans in the Legislature have signaled they will continue pushing for full federal tax conformity in the coming weeks. Hobbs has already vetoed two tax-conformity bills this session.

The governor and legislative leaders say they are close to a broader budget deal. State Senate President Warren Petersen told ABC15 that most line items have been resolved.

"We have closed out most of the line items. But the last details can be the hardest," Petersen said.

Hobbs said she remains confident a bipartisan budget will be reached before the July 1 fiscal year deadline.