Politics & Finances

AZ Supreme Court Says Voters Can't Repeal Tax Cuts, Increases

AZ Supreme Court Says Voters Can't Repeal Tax Cuts, Increases

In a new ruling, the Arizona Supreme Court says that voters cannot repeal tax cuts or increases, as measures enacted by the Legislature are not subject to the state's referendum power.

According to a FOX 10 Phoenix report, the state's highest court has determined that tax cuts or increases enacted by the Legislature can never be blocked by opponents aforementioned constitutional referendum power. The rare exception to this is if a tax is set to fund and entirely new state department.

Per FOX's report:

The written opinion released Friday explains the reasoning behind the court’s April 21 decision reinstating a massive income tax cut enacted by the Republican-controlled Legislature last year and signed by GOP Gov. Doug Ducey. The court reversed a lower court decision that said the tax cuts could be referred to the ballot because they did not appropriate money.

Speaking on behalf of the five-Justice majority, Justice John Lopez wrote:

"A revenue measure is exempt from referendum, regardless of the increase or decrease in revenue, provided it is for the support and maintenance of existing departments of the state government and state institutions."

Two Justices, Bill Montgomery and James Beene, dissented, expressing that their interpretation of the state constitution is that it only exempts measures passed with an emergency clause. The two Justices would have allowed tax cuts referendums to appear on November ballots.

Lopez did note that Arizona voters do have recourse -- they can pass an initiative or elect different lawmakers to the state's legislative branches.

It is important to note that all tax increases take a 2/3 majority if they are to be enacted.

What do you think about the Arizona Supreme Court's decision?

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Rebekah Barton

Rebekah Barton

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