WATCH: Water, taxes, ESA funding outlined by Gov. Hobbs in her State of the State address

By 12 News

Gov. Katie Hobbs took center stage at the Arizona State Capitol on Monday afternoon, delivering her State of the State address as lawmakers returned for the first day of the 2026 legislative session.

The annual speech gave both Democrats and Republicans their first look at the governor’s priorities for the year ahead, setting the tone for policy debates on affordability, economic growth, and resource management. Hobbs outlined several proposals she has been promoting in recent weeks.

One of those ideas includes a plan aimed at supporting both the tourism economy and Arizona residents struggling with rising utility costs. 

She told 12News’ Brahm Resnik about this on “Sunday Square Off.”

“It’s a $3.50 cent fee that visitors would pay on short-term nightly fee on short term rentals less than a cup of coffee a day, but really helps Arizonans struggling with their utility bills, as well as help with the weatherization program that we have that saves them money on their energy bills well down the road,” Gov. Hobbs said.

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