Arizona Supreme Court Ruled: Legislative tax cuts can't be repealed by voter referendums

According to the Arizona Supreme Court, a referendum backed by organized labor to block an income tax cut worth $2 billion annually violated the state constitution 5–2.

By davidpinter, CC BY 3.0

After overturning a lower court ruling on April 21, the court did not explain why it made its decision.

In the past, state courts ruled that a 2020 referendum to raise taxes on high earners and increase education spending would be struck down by state courts.

Arizona's Constitution allows voters to challenge legislature-approved laws in referendums to prevent them from taking effect. In order to place the issue on the ballot, they must collect the signatures of at least 5 percent of qualified voters.

In contrast, the state constitution prohibits referendums on laws "for the support and maintenance of the departments of the state government." As a result of the fact that the lower court did not appropriate money to fund the tax cut, the Supreme Court of Arizona determined that it was wrong to rule it could proceed to referendum.

Arizona Free Enterprise Club v. Hobbs is the case in which the ruling was rendered. This group's website says it "advocates for free markets and economic growth." Democratic Secretary of State Katie Hobbs is a candidate for Arizona governor in November.

22 August 2022