Arizona Governor Katie Hobbs vetoed a bill that would have provided tax relief to Arizonans, prompting strong rebukes from leading Republicans. Hobbs said Senate Bill (SB) 1106, which would bring Arizona’s tax codes in line with federal tax law changes created by President Donald Trump’s “One Big Beautiful Bill,” was a “partisan bill” that “puts billionaires and special interests first.”
Arizona House Speaker Steve Montenegro (R-Glendale) responded in a video posted on X. “Governor Hobbs veto of our tax relief act is a failure of leadership that will create unnecessary confusion for millions of Arizona taxpayers. The governor admitted swift action was needed, but she did not offer a plan of her own. No Bill, no alternative, no solution. … The chaos ahead is not accidental. It is the direct result of Governor Hobbs’ decision to veto a responsible tax conformity bill with no replacement plan.”
He listed off what the bill consisted of. “It provided certainty and stability at a moment when both are needed — no tax on tips, no tax on overtime, no tax on retirement, no tax on child care — all would and should be the law today.” The bill also would have increased the standard deduction, expanded the child tax credit, created a deduction for childcare expenses and provided additional tax relief for seniors.
The Arizona Senate Republicans issued a statement equally critical of Hobbs. “Governor Katie Hobbs killed SB 1106 — a $1.1 billion tax cut for Arizona families, seniors, and small business owners,” the senators said on X. “Instead of relief, Hobbs chose chaos and higher taxes. This is a slap in the face to the hardworking Arizonans counting on that tax return to help make ends meet.”
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