Arizona Governor Vetoes Second Tax Conformity Bill

Uncertainty continues for taxpayers as state legislature and governor clash over tax relief proposals

Published on Feb. 13, 2026

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Arizona Governor Katie Hobbs has vetoed the Republican-backed second attempt at a tax conformity bill, extending uncertainty during tax filing season. The governor is pushing her own "Middle Class Tax Cuts Package" proposal, which includes a $6,000 deduction for seniors and increases to standard deductions, while Republicans say their plan would provide $440 million in tax relief.

Why it matters

Tax conformity is a critical issue for Arizona taxpayers, as it aligns the state's tax code with changes made at the federal level. The ongoing standoff between the governor and the Republican-controlled legislature is creating confusion and uncertainty for Arizonans as they prepare to file their taxes.

The details

Governor Hobbs vetoed the Republican-backed HB 2785, which would have conformed Arizona's tax code to the federal changes made in 2025. The GOP plan would have provided $440 million in tax relief. However, Hobbs is pushing her own "Middle Class Tax Cuts Package" (SB 1203) that includes a $6,000 deduction for seniors and increases to standard deductions. Republicans have accused Hobbs of "partisan political theater" in rejecting their proposal.

  • On Thursday, February 13, 2026, Governor Hobbs vetoed the Republican-backed HB 2785 tax conformity bill.
  • The Arizona legislature passed HB 2785 on Wednesday, February 12, 2026.

The players

Katie Hobbs

The Democratic governor of Arizona who vetoed the Republican tax conformity bill and is pushing her own "Middle Class Tax Cuts Package" proposal.

J.D. Mesnard

The Republican chairman of the Arizona Senate Finance Committee, who said the vetoed tax conformity bill was "necessary" even if not the GOP's preferred approach.

John Kavanagh

A Republican state senator who advised Arizonans to "Don't file your taxes until we resolve this" ongoing tax conformity issue.

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What they’re saying

“This bill is necessary, even if it isn't the preferred approach I and my Republican colleagues wanted to take.”

— J.D. Mesnard, Senate Finance Committee Chairman (KTAR News)

“Don't file your taxes until we resolve this.”

— John Kavanagh, Republican State Senator (KTAR News 92.3 FM's The Mike Broomhead Show)

What’s next

The Arizona legislature and Governor Hobbs will need to reach a compromise on tax conformity before the current tax filing season ends, in order to avoid taxpayers having to refile their returns.

The takeaway

The ongoing political standoff over tax conformity in Arizona is creating confusion and uncertainty for taxpayers, highlighting the need for bipartisan cooperation on critical fiscal issues that impact residents' pocketbooks.