Legislation to Reduce Financial Burdens for Hardworking Arizonans Through Tax Reductions Passes Senate

FOR IMMEDIATE RELEASE                                                                             Thursday, February 27, 2025

Legislation to Reduce Financial Burdens for Hardworking Arizonans

Through Tax Reductions Passes Senate

PHOENIX, ARIZONA— Two legislative proposals to reduce financial burdens on hardworking Arizonans through tax reductions are now headed to the House after passing the Senate with full Republican support this week.

Ballot referral SCR 1014 and its mirror bill SB 1318, both sponsored by Senator J.D. Mesnard, provide taxpayers with a reduction on the individual income tax rate when the state's general fund has a surplus. SCR 1014 is contingent on the approval of voters, while SB 1318 requires passage in the House and the governor's signature for implementation.

"Senate Republicans have been committed to finding ways to alleviate the financial burdens Arizonans face, especially during the last four years of overwhelming inflation," said Senator Mesnard. "SB 1318/SCR 1014 is a commonsense measure that supports this mission to ensure that individuals can keep more of their hard-earned dollars, rather than give it to the government. If the state has a surplus, there's a good chance we're overtaxing our citizens. With the support of voters, Arizonans can look forward to a future where their money stays where it belongs – in their pockets."

SB 1371, also sponsored by Senator Mesnard, provides support to retirees by establishing tax reductions on distributions from pension accounts, retirement accounts, and IRAs. SB 1371 gives a preferential reduction to anyone 67 or older and caps the total subtraction at the amount of a standard deduction. Arizona is one of only a handful of states that doesn't impose a tax on social security income. SB 1371 essentially mimics Arizona's social security tax policy and applies it to all retirement income.

"Arizonans deserve to keep more of what they earn so they can plan for retirement at an appropriate age. This bill allows retirees to enjoy their responsible savings while securing a comfortable and stable life in their golden years, free from unnecessary financial burdens," said Senator Mesnard. "In a world where the cost of living continues to rise, we need to prioritize the needs of our citizens, making sure they have what they need to succeed. I remain committed to fostering a pro-growth, taxpayer-friendly environment for all Arizonans and look forward to seeing this legislation advance to the governor."

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For more information, contact:

Kim Quintero

Director of Communications | Arizona State Senate Republican Caucus

kquintero@azleg.gov