Republicans Pass Tax Relief Plan, Gov. Hobbs Vetoes in Less Than 24 Hours

Arizona's House and Senate Republicans approved a major tax plan that could save residents an estimated $1.1 billion over three years on Thursday. However, Governor Katie Hobbs (D-AZ) vetoed the measure in less than 24 hours.

The tax conformity legislation aligns the state's tax code with federal changes from President Donald Trump's recent tax reform package.

Republican lawmakers say the timing is critical since tax season is already underway and families need clarity when filing their returns.

Senate Finance Chairman J.D. Mesnard and House Ways and Means Chairman Justin Olson introduced the bills, SB 1106 and HB 2153, to help working families keep more of their paychecks.

Republican leaders framed the tax cuts as necessary relief after years of inflation and rising costs under previous federal policies. They argue Arizona families are struggling with higher energy prices and increased costs for everyday essentials.

State Representative Joseph Chaplik (R-AZ), who is running for Congress, celebrated his vote on Thursday, saying it was his "honor to vote for lower taxes in AZ to match President Trump's Big Beautiful Bill."

The following day, Rep.Chaplik then expressed his disappointment, stating, "It took less than 4 days for Katie Hobbs to prove what we all knew.”

He then accused Gov. Hobbs of “lying in her State of the State speech and she doesn’t care about making Arizona affordable again… AZ deserves better.”

Hobbs' Veto

Gov. Hobbs vetoed the Republican tax bill on Friday because she believed it favored wealthy corporations and special interests while actually raising taxes on working seniors. She criticized it as fiscally irresponsible with no clear funding plan.

Instead, Hobbs introduced her own Middle Class Tax Cuts bill, along with Senate Leader Priya Sundareshan (D-AZ) and House Leader Oscar De Los Santos (D-AZ), that raises the standard deduction, ends taxes on overtime and tips, and increases relief for seniors.

She stated, "I made clear what bill I would sign: one that cuts taxes for the middle class. Instead of working with me to put the middle class first, the Republican majority has chosen to engage in political theater and sent me a partisan bill."

“This is what happens when we put everyday Arizonans over special interests,“ House Leader De Los Santos concluded.

What's next for Arizona taxpayers?