Appropriations Committee Chairmen Support Legislature’s Tax Conformity Plan
FOR IMMEDIATE RELEASE
Wednesday, January 14, 2026
STATE CAPITOL, PHOENIX – House Appropriations Chairman David Livingston and Senate Appropriations Chairman David Farnsworth today voiced strong support for legislation aligning Arizona’s tax code with President Trump’s One Big Beautiful Bill, calling the proposal the Arizona One Big Beautiful Bill and affirming that the state is fiscally prepared to deliver the tax relief it provides.
The legislation, HB 2153 and SB 1106, is expected to deliver approximately $1.1 billion in tax savings to Arizonans over the next three years while preserving a balanced budget and Arizona’s strong financial position.
“It’s bizarre that the Governor continues to claim the Legislature is supporting tax cuts for billionaires,” said House Appropriations Chairman David Livingston. “The 2025 income tax forms issued by Governor Hobbs’ own Department of Revenue fully conform to the expanded State and Local Tax (SALT) deduction, while the House and Senate plan explicitly decouples from it. She has apparently not read our proposal—or reviewed what her own agency is implementing.”
In her State of the State address, Governor Hobbs asked the Legislature to send her an income tax conformity bill that only partially conforms to the One Big Beautiful Bill Act, including provisions related to tipped wages, overtime, and new deductions.
“Collaborating to enhance our tax system benefits everyone,” said Senate Appropriations Chairman David Farnsworth. “Arizona’s tax code needs to be updated to accurately calculate adjusted gross income while ensuring it remains straightforward and understandable for taxpayers. Arizonans want to file their taxes with confidence, and I appreciate the thoughtful efforts of Senator Mesnard and Representative Olson in proposing a practical solution.”
The Appropriations Chairmen emphasized that Arizona’s current fiscal strength is the result of years of responsible budgeting by the Republican Majority—restraining spending, prioritizing core government functions, and fostering an environment that promotes growth and job creation.
“By working together and focusing on our shared priorities, Arizona is advancing the Arizona One Big Beautiful Bill from a strong and stable foundation,” said Chairman Farnsworth. “Our revenue numbers look encouraging, our reserves remain intact, and recent spending reductions allow us to responsibly align with the Trump tax cuts. Fiscal discipline and tax relief go hand in hand, and this approach demonstrates our commitment to both.”
The Chairmen also noted that corporate income tax collections have exceeded projections, reflecting Arizona’s competitive business climate and validating long-standing policies focused on economic growth rather than tax-and-spend government.
“Responsible budgeting has real consequences—in a good way,” Livingston added. “It means that when families are struggling with higher costs, we can act decisively. We can lower taxes, improve affordability, and provide certainty during tax season without shifting risk onto future taxpayers.”
The Arizona One Big Beautiful Bill supports working families by increasing the child tax credit, creating a deduction for childcare expenses, and aligning Arizona law with federal reforms such as no tax on tips or overtime—while safeguarding the state’s long-term fiscal health.
HB 2153 and SB 1106 will be heard Wednesday afternoon in a joint meeting of the House Ways and Means Committee and Senate Finance Committee following floor sessions.
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For more information, contact:
Andrew Wilder
Director of Communications | Arizona House of Representatives Republican Caucus
Kim Quintero
Director of Communications | Arizona State Senate Republican Caucus