Today, the legislature is debating two bills to change Arizona's tax withholding rate to adjust for the federal rate's recent adjustment. The language is strike-everything amendments to SB 1185 and HB 2082. Currently, the two rates are dependent on one another.
The Department of Revenue contends that without this emergency measure, the state stands to lose $73 million in FY '09 and $37 million in FY '10.
[Go here for more coverage by the East Valley Tribune.]
The Senate has suspended the rules in order to hear SB 1185 and the Appropriations committee voted to pass it minutes ago. What should have been a ten-minute Senate Appropriations committee turned into a lengthy discussion over tax credits when Sen. Harper offered a committee amendment to repeal public school tax credits and tax credits to charities that assist the working poor. The amendment failed with only Sens. Harper and Gould voting for it.
The Senate will hear the bill on the floor today at 1 p.m.
Update: The Senate bill with the strike-everything amendment passed Third Read with the emergency clause. There were no additional amendments offered on the floor.