By Jeremy Duda | Arizona Mirror
Key Republican lawmakers are hoping to persuade Gov. Doug Ducey to call a lame-duck special session in the next six weeks so the Legislature can adjust Arizona’s income tax laws to conform with the federal tax bill that President Trump signed nearly a year ago.
Waiting until newly elected legislators take office in January could make the prospects of passing tax conformity more difficult for Republicans. The Republican majority in the 60-seat state House of Representatives will drop from 35 to 31 seats, allowing Democrats to more easily block any Republican-backed policy.
Tax conformity is an issue that comes up annually at the Legislature. But because of the federal Tax Cuts and Jobs Act, the stakes are higher now. The December 2017 overhaul cut income tax rates. But it also eliminated a number of itemized deductions, while at the same time raising the standard deduction for unmarried individuals from $6,350 to $12,000.
Arizona’s income tax laws mirror those on the federal level, so if the state conforms its income tax laws to the federal bill, Arizona will eliminate those same deductions at the state level.
