AZ Legislative Update: Arizona Supreme Court Reinstates Historic Tax Cuts
Posted by [email protected] on Apr. 22, 2022 / AZ Legislative Update / Subscribe 0
AZ Legislative Update: Arizona Supreme Court Reinstates Historic Tax Cuts
Yesterday afternoon, the Arizona Supreme Court ruled that last year’s historic income tax cuts cannot be referred to the November ballot. The Court ruled that the tax cut legislation, passed last session, cannot go to the ballot because it falls under the Arizona Constitution’s “support and maintenance” exception for citizen referenda.
Under the new law, rates for most taxpayers will drop to a flat 2.5 percent, and revenue would be cut by $1.9 billion once the tax cuts are fully in place. That’s down from a range of 2.59 percent to 4.5 percent. It represents largest tax cut in state history.
The Legislature’s budget analysts, JLBC, said that the average Arizonan earning between $75,000 and $100,000 will save $231 a year in state income taxes. Meanwhile, the average taxpayer earning between $500,000 and $1 million a year will save more than $12,000, according to JLBC.
In terms of the budget, this decision from the State’s high court resolves a key issue and major point of debate among legislative members; however, there still remains a significant amount of other contentious items, including calls for an additional $900 million for K-12 education and the water package.
To read the AZ Supreme Court’s decision, please click here.
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