Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Conformity topic
No spam. Unsubscribe anytime.
House committee advances bill to codify 2025 federal tax changes into Arizona law after heated debate
Summary
The Arizona House Committee of the Whole recommended House Bill 27-85, a tax-conformity package described by its sponsor as necessary to align state law with Department of Revenue guidance for 2025 returns; opponents called it a large, unpaid-for tax cut favoring corporations and the wealthy.
Representative Olson moved the Committee of the Wholerecommendation that House Bill 27-85, as amended, receive a do-pass recommendation. Olson said the measure codifies the federal tax changes already reflected in forms the Arizona Department of Revenue issued under the governors executive order and warned that failing to conform would force roughly 1,000,000 taxpayers to amend returns.
The bill sponsor said the package applies the federal changes to Arizona law, contains a $6,000 senior deduction and a $1,500 increase to the standard deduction, and excludes new taxes on tips or overtime. "If we fail to pass this conformity measure, the Department of Revenue testified that approximately 1,000,000 Arizona taxpayers will have to amend their tax returns after the tax filing season and cut a check to the state," Olson said during debate. He and backers described the measure as a practical step to provide certainty to filers.
Opponents challenged the fiscal and policy choices in the measure. Representative De LaSantis characterized the bill as "a giveaway to multinational billion-dollar corporations on the backs of working people," argued Republicans had not identified pay-fors and urged a no vote. Representative Aguilar, describing the measure as the "big ugly bill," said it would create a multiyear revenue shortfall and risk funding for schools and social services.
The House recorded a division on the Ways and Means committees amendment to HB 27-85; members counted 31 ayes and 22 nays to adopt the amendment. After extended debate, the Committee of the Whole rose and reported HB 27-85 as amended with a do-pass recommendation.
Next steps: The committeereport was adopted by the House and the measure was placed on the calendar for engrossing and further consideration; the transcript does not record a final third-reading vote on HB 27-85 in this session.
Sources: Floor debate and committee actions during the Arizona House session on Feb. 10, 2026.
