PHOENIX — The state House voted Tuesday to permanently repeal Arizona’s only statewide property tax even as legislators struggle to balance the budget.

The 32-28 vote, largely along party lines with Republicans in the majority, came over Democrat objections that the funds, while not being collected now, likely will be needed in future years.

Rep. Tom Prezelski, D-Tucson, called the move “irresponsible” given the need for state services. And Rep. Pete Rios, D-Dudleyville, said it reflects the philosophy of Republicans who see government as the enemy and want to “starve the beast.”

But House Speaker Jim Weiers, R-Phoenix, said it’s incorrect to suggest that eliminating the tax  and its $250 million in revenues  would shrink state spending.“Starving the beast?” he asked. “Not quite. Just put it on a diet.”

And Rep. Russell Pearce, R-Mesa, said state spending has grown an average of 14.5 percent a year for the last three years, more than double the 6 percent figure that includes population growth and inflation.

Republicans said failure to act would result in a massive tax increase: The tax bill on a $250,000 home would increase by about $112 a year if the levy returns.

If the bill gains similar approval in the Senate, where it now heads, it could set the stage for the second veto of the session by Gov. Janet Napolitano who also has called the move to repeal the bill now “irresponsible.”

Her first veto occurred Tuesday when she rejected what Republican lawmakers called a “spending freeze,” saying she wants an actual plan from them to make up the $1.2 billion gap between current expenses and revenues. In vetoing the measure, the governor refused to direct state agencies to cut spending by $260 million while budget-balancing talks continued. That measure also directed state officials not to take more money out of various special funds, leaving that $320 million for lawmakers to apply to the deficit. “This bill, which lacks bipartisan support and addresses less than half the budget shortfall amount, is wholly inadequate,” Napolitano wrote.

The property tax levy was suspended in 2006 as lawmakers had more money coming in than needed.

Legislators at that time permanently cut individual income tax rates 10 percent. But property taxes were suspended for just three years, with the levy returning automatically in late 2009 unless lawmakers act first.

While action is not necessary now, the business community wants action this year, which happens to be an election year.

Part of the reason is Arizona’s unusual system of computing property taxes. While the levy on a $250,000 home is $112 a year, a business valued at $250,000 would pay nearly $260.

Rios chided that effort.

“I would remind our businesses that they benefit from good schools as much as anybody else,” he said. “I would hope that, at the end of the day, they would be good corporate neighbors and pay their fair share.”

Weiers, however, said that ignores problems homeowners now have. “You can have the best education in the world and if people can’t afford their homes who are they going to educate?” he asked. And Weiers said voting now encourages businesses to locate and expand here because they know the tax won’t come back

Not all Republicans voted to repeal the tax. Rep. Jennifer Burns, R-District 25 who represents most of Cochise County, said her grandmother, who turns 88 Sunday, paid $16.41 in state property taxes in 2005. “That’s not pricing her out of her home by any means,” she said.

“That amount of money to her won’t make a difference,” Burns continued. “But if we take that and pool that with the other amounts of money it does make a difference,” she said, citing figures from the American Legislative Exchange Council which ranks Arizona 50th in the nation in both expenditures per pupil and the pupil-teacher ratio.

On the issue of this year’s finances, the governor finally had a face-to-face meeting with Republican leaders.

None of the participants reported significant movement from the session. But they did agree to have their respective budget staffs start comparing information about how much money is being collected in taxes and how much more the state expects to collect between now and when the fiscal year ends June 30.

Gubernatorial aide Jeanine L’Ecuyer said both sides also need to agree on how many children are actually enrolled in public schools, as the state is obligated to provide a certain amount of money for each youngster. There is some evidence that the actual number of students in schools is less than anticipated, possibly because the state’s new employer sanctions law has resulted in some people moving out of Arizona.

And she said enrollment in programs like the Arizona Health Care Cost Containment System has increased beyond projections as the economy has gotten worse.