https://azfreenews.com/2026/01/governor-hobbs-vetoes-gops-1-1-billion-tax-relief-package/
January 18, 2026
By Matthew Holloway |
Gov. Katie Hobbs has vetoed Republican-backed tax conformity legislation approved Thursday by the Arizona Legislature.
The bill, SB 1106, would have provided $1.1 billion in tax relief over three years while maintaining a balanced state budget.
The legislation would have aligned Arizona’s tax code with recent federal changes and included provisions eliminating state income tax on tips and overtime pay, increasing the standard deduction, expanding the child tax credit, creating a deduction for childcare expenses, and providing additional tax relief for seniors.
Hobbs vetoed the bill without releasing a formal veto message as of the time of publication.
In response, House Speaker Steve Montenegro (R-LD29) issued a statement criticizing the governor’s decision and warning of potential impacts on taxpayers as the filing season approaches.
“Governor Hobbs’ veto of our tax relief act is a failure of leadership that will create unnecessary confusion and disruption for millions of Arizona taxpayers,” Montenegro said in a statement released Thursday.
