Senate committee advances bill to channel tax revenue to Chase Field renovations; Phoenix officials and business groups split

The Senate Finance Committee advanced House Bill 2704 on March 21 after adopting a series of amendments that limit the total redirected sales‑tax support for Chase Field refurbishment and add reporting and oversight requirements. The bill would redirect specified city, town and county transaction privilege tax (TPT) receipts collected from business activity at an MLB facility owned by the Maricopa County Stadium District into a stadium fund to pay for reconstruction, maintenance and improvements.

Why it matters: Supporters said the measure preserves a major downtown economic anchor and protects thousands of jobs and local businesses that rely on events at Chase Field. Opponents—including some fiscal‑watch groups and county officials—argued the proposal shifts substantial local tax revenue to stadium improvements that primarily benefit a private franchise and could cost taxpayers hundreds of millions over time.

Key testimony: Representative Weininger, the House sponsor, outlined multiple drafts and said the measure had been narrowed during negotiations: it removes an earlier proposed income‑tax diversion, caps total TPT diversions at $500 million in today’s dollars (adjusted annually for inflation under the chairman’s amendment), and requires public reporting of projects and spending. Weininger said the intent is to keep the Diamondbacks in Downtown Phoenix while limiting how public funds may be used.

Phoenix Mayor Kate Gallego testified that she supports keeping the team downtown but urged stronger limits and matching private contributions. “There’s a reasonable path forward,” she told the committee, asking for a cap, stricter limits on how tax dollars could be used and a requirement that the Diamondbacks match public spending.

Arizona Diamondbacks representatives pushed back. Luis ("Gonzo") Gonzalez, a senior adviser to the team, said the club and its foundation have donated tens of millions to Arizona nonprofits and argued the Diamondbacks are a community asset. Team representatives and allied business groups emphasized the stadium’s role in drawing visitors, supporting restaurants and hotels and generating economic activity. The Diamondbacks and stadium proponents said the team and its local partners planned to contribute substantial private funding as part of any deal.

Opposition voices included the Arizona Center for Economic Progress and the Arizona Tax Research Association, which warned the bill would transfer public funds to a private sports franchise and set a problematic precedent for state involvement in local stadium financing. County officials told the committee the stadium district would have to negotiate a lease with the team and urged a stakeholder process involving the county, city and team before final action.

Amendments, safeguards and votes: Committee amendments adopted prior to the final vote included: removing diversion of state income tax from the bill; capping the aggregate TPT diversion (chair’s amendment) and requiring the stadium district to publicize in‑progress and completed projects, spending amounts and revenue sources. The chairman’s floor amendment also narrowed the definition of “adjacent buildings” and required a $250 million intent statement for franchise private contributions in some drafts.

The committee considered additional amendments offered by several members (including proposals from Senator Epstein and Senator Fernandez) that would have lowered the cap, required an annual match from the team, or changed indexing and reporting details. Several of those amendments failed on recorded votes during the hearing. After debate and floor amendments, the committee voted to return House Bill 2704 with a due‑pass recommendation. The committee recorded a 4‑3 vote in favor of the motion to advance the bill.

What the bill allows or restricts: As amended, the bill (1) focuses tax diversion to TPT revenues tied specifically to the stadium and defined adjacent property, (2) caps aggregate public contributions subject to an inflation index in the chairman’s amendment, and (3) establishes enhanced reporting requirements and a reporting role for the stadium district and state budget offices. The legislation leaves lease negotiations and operational control to the county stadium district and the franchise.

Next steps and stakes: The bill will move to the floor, where supporters and opponents signaled they plan further amendments. Mayor Gallego and county officials called for a public stakeholder process before final approval; business and tourism groups urged passage to preserve the local economy and event capacity. Committee members said they expect continued negotiations on matching, caps and limits on use of funds.