What does the Hobbs plan mean for taxpayers?

Risk of Filing Twice

According to the Department of Revenue, over 1 Million filers will be forced to amend their returns if the existing tax forms are changed.

Higher Taxes

Adopting Katie Hobbs’ tax plan would result in Arizona families and small businesses paying $200 Million more in taxes when they refile.

Tax Season Chaos

Attempting to change the tax forms in the middle of tax season means weeks of uncertainty, confusion and chaos for Arizona taxpayers.

Know the facts.

After the passage of the Big Beautiful Bill in Washington DC last year, Arizona is required to pass tax conformity legislation to bring our tax code up to date and ensure maximum tax relief.

As tax season loomed, Republican lawmakers urged Katie Hobbs to call a special session in December to address conformity before millions of Arizonans began filing. Hobbs Refused.

Instead, Hobbs demanded at her State of the State address immediate action on her own tax conformity plan. One problem: her demand for action was impossible because not one lawmaker had introduced her plan as an actual bill.

Compounding the dysfunction from her administration, the Arizona Department of Revenue, a state agency operated by Governor Hobbs, issued tax forms in January that didn’t match the tax plan proposed by Governor Hobbs.

In an attempt to end the tax filing chaos, the Republican-led legislature passed HB 2785, a tax conformity package that aligned Arizona law with the tax forms issued by Hobbs’ Department of revenue and guaranteed $1.1 Billion in tax relief. Governor Katie Hobbs vetoed it.

Why Katie Hobbs plan doesn’t work.

Governor Hobbs has her own plan for tax conformity, but it would only result in tax season chaos:

Adopting Hobbs’ plan would require that the existing approved tax forms be changed, forcing over one million filers to amend their returns.

Hobbs’ plan removes $200 million dollars in tax relief currently provided on the approved tax forms, a tax increase that will be paid by every Arizona taxpayer that is forced to refile.

Arizona’s tax forms were approved by the Department of Revenue, a state agency operated by Governor Hobbs. If Hobbs wanted a different conformity package, her own department shouldn’t have issued forms that didn’t align with her plan.

Hobbs is telling lawmakers that they can negotiate differences on a conformity tax plan in the budget. The problem with this approach is that budget likely won’t be passed until June, two months AFTER the April 15 tax filing deadline.

This is total tax chaos and Katie Hobbs is 100% to blame.

Take Action!

Contact Governor Katie Hobbs and tell her to END THE CHAOS and let taxpayers use the tax forms her own administration approved and published.

Paid for by the Arizona Free Enterprise Club.