proposition 208

Associated Press | Matt York

The Arizona Supreme Court is set to release its decision Thursday in a constitutional challenge to a new tax on high earners that was designed to increase school funding and approved by the state’s voters in November.

AP, file

Arizona Gov. Doug Ducey has signed legislation allowing small businesses to avoid a new 3.5% income tax surcharge that will cut nearly $300 million from the new revenues Proposition 208 was expected to send to schools. 

  

Matt York | Associated Press

Progressive groups that convinced voters last year to raise taxes on the wealthy to boost school funding have filed paperwork to block big new tax cuts enacted by the Republican-controlled Arizona Legislature and signed by GOP Gov. Doug Ducey this week.

The groups filed a pair of voter referendums Friday with the Secretary of State’s office, said David Lujan, a former Democratic lawmaker who leads the group Stand for Children.

Matt York | Associated Press

Arizona Senate Republicans voted Tuesday to further shield some of the state’s wealthiest taxpayers from a tax increase approved by voters last year to boost education funding.

If Republican Gov. Doug Ducey signs off as expected, income from estates, trusts and business profits won’t be subject to a voter-approved 3.5% surcharge, reducing school funding by several hundred million dollars per year.

Associated Press | Scott Applewhite

A trial court judge on Tuesday threw out several legal challenges to a new voter approved tax on high-earning Arizonans, leaving just one additional issue raised by challengers to Proposition 208 in play while the state Supreme Court is considering whether the measure is constitutional.