STATE CAPITOL, PHOENIX– Representative Ben Toma (R-22), chair of the House Ways & Means Committee, and Senator J.D. Mesnard (R-17), chair of the Senate Finance Committee, today applauded the Legislature for passing legislation (SB 1143) that conforms Arizona’s tax code with the federal code while offsetting the increase in taxes caused by conformity.
Arizona uses the federal tax code as the basis of our state code, and the Legislature makes changes to conform to the federal code every year. Because the federal government passed the Tax Cuts and Jobs Act last year, if Arizona conforms our code without an offset, it will have the effect of raising taxes on most Arizonans.
SB 1143 offsets that tax increase, which the Joint Legislative Budget Committee estimates would have equated to $155 million in new taxes, with an across-the-board rate reduction to all tax rates.
“Not only does this legislation provide much-needed clarity to those preparing to file their tax returns, but it also averts an increase in taxes,”said Representative Toma. “Tax cuts at the federal level shouldn’t result in a state tax increase. I applaud my colleagues in the Legislature for quickly addressing this issue, and I hope that the Governor will join us in stopping this tax increase on Arizonans by signing the legislation.”
“This bill will ensure that Arizona’s tax code remains in alignment with the federal code while preventing a windfall at the expense of our taxpayers,” said Senator Mesnard. “As this bill only applies to this year, I look forward to working with the Governor on a longer-term tax reform for next year and beyond.”