Tax Day: Arizona standoff over Big Beautiful Bill tax cuts affecting some people

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Tax Day: Arizona taxpayers face some uncertainty

Tax Day is on April 15, and this year, many Arizonans still don't know how much they will actually owe or be owed in taxes, as a political battle continues at the State Capitol. FOX 10's Steve Nielsen reports.

For 2026, Tax Day falls on Wednesday, April 15. However, many Arizonans still don’t know how much they actually owe or will be owed in taxes.

Meanwhile, a political battle at the Arizona State Capitol means the state hasn’t decided yet on what tax cuts to adopt from the Federal tax cuts.

The backstory:

The issue all began in January, when the uncertainty of tax cuts caused the Department of Revenue to say a third of filers might need to amend their taxes later on. Now, both sides of the aisle say that won’t happen, but they still haven’t agreed on what will happen.

The issue stems back to President Donald Trump's so-called "Big Beautiful Bill," which was signed into law on July 4, 2025. Republicans in the state legislature have twice tried to ensure Arizona has the same tax cuts as the BBB, but Governor Katie Hobbs has said the budget needs to be negotiated first.

"Arizona just structurally has this problem: following the federal law, but not really deciding what exactly they’re gonna do ‘till they finish their budget work, which they're never get done by April 15," said Edward Zollars, a CPA with the firm Thomas & Zollars.

By the numbers:

According to the Arizona Department of Revenue, 50,000 fewer people have filed as of April 13, when compared to this time in 2025.

Local perspective:

Zollars says depending on the person, it could mean a lot or a little on tax refunds, especially for tipped workers or senior citizens.

"If that bothers you, then you could just wait since we’re sitting here at April 13," said Zollars. "We’re sitting close enough, anybody’s making a decision right now clearly wasn’t in a rush to file."

The uncertainty over taxes is affecting some business owners, like Jon Stuart with Stuart Custom Cabinets.

"Every item on our budget list is affected by how we’re doing as a business, but also what the tax implications are," said Stuart.

Stuart says he’s in a holding pattern because of the uncertainty regarding state taxes.

"Obviously, cash flow for small business is critical, so finding out the tax implications of large equipment purchases is a key factor," said Stuart.

Stuart said the confusion is why he’s filing for an extension.

"It would be a lot better for everybody if we just had certainty," he said.

What they're saying:

Prominent state politicians say Arizonans should file their taxes now.

"Go ahead and file. Regardless what happens, we aren’t going to budge on this issue," said Arizona State Senate President Warren Peterson (R-District 14). "Regardless what happens, we will make sure taxpayers do not have to amend, and taxpayers do not have to pay more."

In a statement, Gov. Hobbs also said people should file now, adding that Arizonans shouldn’t delay filing their taxes.

What's next:

Those we talked with on April 13 stressed it’s unlikely Arizona would make changes that would require many to amend their taxes later in the year.

The Source: Information for this article was gathered by FOX 10's Steve Nielsen.

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