For Immediate Release News Advisory
 

Death Tax Repeal Brings Jobs to Arizona
2nd largest Washington State Employer moving to Arizona
Sen. Dean Martin sponsors SB 1170 to permanently repeal Arizona's death tax

(PHOENIX, AZ) - Arizona's pending repeal of the death tax has already attracted new jobs and revenue to the state. Sponsored by Sen. Dean Martin, SB 1170 will permanently repeal Arizona's death tax and Arizona's generation-skipping transfer tax.
Services Group of America Inc., a food service company with more than $2 billion in annual revenue, just announced that it is moving its corporate headquarters from Seattle to Arizona because of the death tax.

"With Washington's Legislature and governor electing to impose the highest state inheritance tax in the nation on family-owned companies, it has left us with little choice but to move," said Gary Odegard, vice president of corporate communications, in a statement. He said the state's 19 percent inheritance tax is levied on family-owned company owners when they die. "Arizona is phasing out the tax," he added.

"The death tax is the most morally objectionable tax on the books. Our repeal is good for families, good for business, and good for Arizona's economic development," said Sen. Dean Martin, Chairman of the Senate Finance Committee, and sponsor of the bill. "I welcome Services Group of America to Arizona, and I am pleased that my bill to permanently repeal Arizona's death tax helped close the deal. I am excited that our efforts to move Arizona to a low and fair tax structure are already paying off."

Services Group of America Inc., is Washington state's second-largest private company, according to the Puget Sound Business Journal's Book of Lists. The West Seattle area company, which reported approximately $2.2 billion in revenues in 2004, specializes in food service and retail food distribution and production, and employs 4,000 people. A spokesman said the company is moving because of the state's high inheritance tax.

SB 1170 passed the Senate with overwhelming bipartisan support, and is heading for a floor vote in the House of Representatives before going to the Governor.

Senator Dean Martin is a small-business owner who represents District 6 in North Phoenix. He is the Chairman of the Finance Committee, Vice-Chairman of the Judiciary Committee, and a senior member of the Senate Appropriations Committee.

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