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Family Tax Rebate Claimed by Hobbs Despite Initial Budget Opposition

Photo: Arizona Capitol Times

Governor Katie Hobbs is taking credit for a $260 million family tax rebate, despite her initial reluctance to include it in the budget.

Family Tax Rebate Claimed by Hobbs Despite Initial Budget Opposition (Photo: Arizona Capitol Times)

Legal Dance Around the Family Tax Rebate

According to the report published by the Arizona Capital News, in November 08, 2023, the family tax rebate, part of a bipartisan budget, allocates up to $750 to Arizona taxpayers, but Hobbs had originally sought a permanent child tax credit. The political maneuvering around this family tax rebate has sparked controversy, with claims of legal violations and ongoing debates between Democratic and Republican lawmakers.

While Hobbs asserts that she is proud to put money back into Arizonans’ pockets, Senator Jake Hoffman, chair of the Arizona Freedom Caucus, accuses her of violating state law regarding family tax rebate. The caucus proposed a one-time tax credit of $250 for each child, aiming to distribute the state’s $2 billion surplus.

However, legislation was carefully worded to prevent Hobbs from taking credit from family tax rebate, specifying that no official communication should reference the governor’s office. Despite this, a letter from the governor’s hand-picked director is directing recipients to the governor’s website, adding a layer of legal complexity to the situation.

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Budget Surpluses and Legal Quandaries: Future of Family Tax Rebates in Arizona

In a data released by AZ Free News, as Hobbs and GOP lawmakers clash over the family tax rebate, the state faces fiscal challenges. With projections indicating a deficit due to rising expenses and unforeseen economic shifts, the chances of another rebate seem slim.

Hobbs attributes part of the deficit to a law providing vouchers for private and parochial schools, while a flat individual income tax rate and lower-than-expected sales tax revenues further contribute to the financial strain. Despite the ongoing debate, the Department of Revenue is tasked with determining eligible recipients for the family tax rebate, adding a layer of complexity to an already contentious issue.

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