Arizona GOP Governor Vetoes Bill to Erase Individual Income-Tax Increases

February 5, 2019 AT 7:15 AM

By Ryan Randazzo

Gov. Doug Ducey vetoed a bill Friday that would have headed off a state tax increase for individual Arizona filers.

The governor's move both clouds the financial picture for Arizonans preparing their 2018 taxes and foreshadows them paying more.

Republicans in the Senate and House on Thursday sent Ducey a bill to "conform" Arizona's tax code to changes in the federal tax code that took effect with President Donald Trump's Tax Cuts and Jobs Act of 2017.

That act reduced federal taxes for most people, but the federal cuts will indirectly increase state taxes for Arizonans.

Arizona usually conforms to federal changes on how taxable income is calculated. If the state adopts the federal changes but doesn't reduce its own tax rates, Arizona taxpayers will take a big hit.

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