By Jakob Thorington | Arizona Capitol Times
Key points:
- Republican lawmakers passing $1.1 billion tax cut
- Bill fully conforms state tax code to federal House Resolution 1
- Republicans claim state has funds to cover anticipated revenue loss
House and Senate Republicans fast-tracked a $1.1 billion tax conformity bill along party lines to beat the state’s tax processing start date of Jan. 26, but Democratic legislative leaders are expecting a veto when it gets to Gov. Katie Hobbs’ desk.
The House and Senate passed mirror GOP tax conformity bills, House Bill 2153 and Senate Bill 1106, on party lines in both chambers on Jan. 15 after moving the bills in a joint House Ways and Means Committee and Senate Finance Committee hearing the day before. The legislation would fully conform the state’s tax code to match the federal government’s House Resolution 1, known as the “One Big Beautiful Bill.”
Fully conforming to H.R. 1 is expected to reduce the state’s general fund by a little over $1.1 billion, according to the Joint Legislative Budget Committee. Republican lawmakers describe the bill as tax relief for Arizonans, but there remains uncertainty about how the state will manage the loss of revenue.
“I’m fully supportive of passing conformity and adopting the Trump tax cuts in Arizona,” said House Ways and Means Chairman Justin Olson, R-Mesa.
