Income tax

Arizona referendum attempt fails to return new tax bracket to ballot

A citizen attempt to delay a new income tax bracket to circumvent a school tax has failed for lack of enough valid signatures, the secretary of state’s office said.

A coalition of educational and civic groups circulated petitions this summer to prevent Senate Bill 1783 from becoming law. The measure created a new income tax class designed to allow higher income earners to avoid the 3.5% education surtax created by Proposition 208.

The bill was passed by the Legislature in June in a party line vote, with support from opposing Republicans and Democrats.

A citizen referendum campaign was then launched. While supporters of Invest in Arizona submitted more than the required 118,823 signatures, a required review of a sample of those signatures by county registrars estimated that only 100,362 were valid, the secretary’s office said on Friday. of state. This resulted in an error rate of 15.75%.

Another referral, targeting the bill that would create a two tier tax structure resulting in a billion dollar tax cut, is still under consideration. County election officials have a Nov. 15 deadline to complete their work.

Supporters of the Invest in Arizona coalition said they were confident they had enough signatures to meet the threshold to suspend the so-called “lump-sum tax” and send it to the November 2022 ballot for the voters decide. They submitted 82% more signatures than state law requires.

The referral is currently the subject of a lawsuit in Maricopa County Superior Court. The Free Enterprise Club and its allies say the attempt to block tax measures is invalid because the state’s constitution does not allow for the dismissal of tax measures that would affect the support and maintenance of state government.

The case is pending before Judge Katherine Cooper.

Contact the reporter at [email protected] and follow her on Twitter @maryjpitzl.

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