A new report by the American Legislative Exchange Council (ALEC) recognizes Arizona as one of just six states to enact “substantial net tax relief for its citizens” during the 2019 legislative session.
Arizona’s Fiscal Year 2020 budget built on the tax relief passed as part of President Trump’s Tax Cuts and Jobs Act to make Arizona’s code simpler, flatter and more fair. Arizona’s reforms—the most significant of the past 30 years—prioritized middle and low-income earners, increasing Arizona’s standard deductions to $12,000 for individual filers and $24,000 for married filers. For the first time in Arizona, the state standard deduction matches the federal standard deduction, representing a significant simplification of the tax code.
Families are also benefiting from a new $100 child tax credit, as are nonprofits and charities thanks to a new charitable tax deduction that encourages donations to organizations that help those most in need. For the median income tax filer, last year’s tax reform has meant annual relief of roughly $135 after conformity.
“Hardworking Arizonans deserve to keep more of the dollars they earned,” said Governor Ducey. “Since 2015, Arizona has reduced and simplified taxes — while investing in the things that matter. Not only are families and individuals seeing greater tax relief, Arizona continues to increase our competitiveness as the best state in the nation to start and scale a business. My thanks to all our legislative partners for working with us to provide Arizonans tax relief and keep our state strong and competitive.”
“As we’ve simplified our tax code and returned more dollars to taxpayers, we’ve seen more growth and opportunity,” said Arizona Representative Ben Toma. “The smart decisions of today will benefit current and future generations of Arizonans for years to come, and I’m grateful to my colleagues and to the Governor for making pro-growth tax reform a priority.”
“Businesses and people from other states continue to move to Arizona for a reason,” said Arizona Senator Vince Leach. “While we are pursuing policies that promote jobs and keep taxes low on families and individuals, other states are taking the opposite approach. Thank you to Governor Ducey and my fellow legislators for leading on this important issue.”