Republican lawmakers in Arizona’s Senate and House have proposed aligning state tax codes with former President Trump’s federal tax reforms. If passed, the change could provide an estimated $1.1 billion in tax relief over the next three years.
Senate Finance Committee Chair J.D. Mesnard and House Ways & Means Committee Chair Justin Olson are leading SB 1106/HB 2153, aimed at helping families keep more of their earnings. The plan includes increased child tax credits and potential childcare expense deductions to support working families.
With tax season underway, both taxpayers and professionals are awaiting clear guidance from the state. Senate President Warren Petersen emphasized the urgency, saying, Tax professionals and families alike need clear guidance now.
According to the Arizona State Legislature, Governor Katie Hobbs issued an executive order providing state tax guidance ahead of legislative action. House Speaker Steve Montenegro criticized the move, saying, “The Governor jumped ahead of the law by issuing state tax guidance this week that assumes legislative action – which hasn’t happened yet – and her recent executive order only deepens confusion.”
The proposed legislation will be debated next week as the 57th Legislature begins its second regular session. The tax plan aims to reduce costs for Arizonans and support working families.
