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flag Arizona’s governor proposes a $200M tax cut, but a legislative showdown looms over school vouchers and business tax breaks.

flag Arizona Governor Katie Hobbs is pushing a $200 million personal income tax cut, including larger standard deductions, a $6,000 break for seniors, and tax relief on tips and overtime, citing rising living costs. flag She seeks to reform the state’s $1 billion universal school voucher program, but Republican lawmakers oppose her approach, demanding broader business tax breaks and higher-income benefits that could add $337 million in costs. flag A special legislative session is set for January 19 to address the changes, with final laws likely not taking effect until at least 90 days later unless overridden. flag Taxpayers using draft forms based on the proposals do so at their own risk, as final changes could require amended returns.

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