By Howard Fischer | Capitol Media Services via Arizona Capitol Times
Hoping to help charities fearing changes in federal tax laws, a House panel voted Wednesday to let Arizona residents take both the standard deduction on state tax forms and also write off their charitable giving.
But that generosity could reduce state tax collections by up to $30 million.
The 6-4 party-line vote on the Republican-dominated Ways and Means Committee followed pleas from various charities who said they already are seeing a drop in donations because of the federal Tax Cut and Jobs Act. That law not only decreased certain deductions but doubled the amount that individuals can claim in a standard deduction.
That, in turn, is resulting in more people choosing not to itemize. More to the point, without any benefit of a deduction, some charities report that people are giving less.
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Arizona’s own standardized deduction has not changed. But Rep. Ben Toma, R-Peoria, who chairs the panel, said HB 2359 could provide some additional incentive for those who take the standard deduction to also make charitable donations.
