/ Modified jan 22, 2015 6:15 p.m.

Tax Bracket Changes Proposed

State bill to adjust tax brackets for inflation clears first legislative hurdle

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House Bill 2001 would require Arizona to adjust tax brackets every year to account for inflation.

Rep. Justin Olson, R-Mesa, said indexing taxes to inflation keeps the state from giving unintentional tax increases every year.

“So if you have the same purchasing power in one tax year that you had in the previous tax year I don’t think it is good policy that the default position of the state should be that the rate that you pay on that same purchasing power goes up,” he said.

Two years ago, Olson sponsored a similar bill that was vetoed by then Gov. Jan Brewer. He was able to get a one-year change to Arizona tax law that indexes this year’s tax brackets to inflation. His bill this year would make that change permanent.

The House Ways and Means committee unanimously passed the proposal today. It still faces a vote in the full House and Senate.

In his State of the State address earlier this month, Gov. Doug Ducey asked state lawmakers to make the change permanent.

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