Voter-Approved Tax Increase Challenged in Arizona High Court (1)

April 20, 2021, 9:01 AM; Updated: April 20, 2021, 7:02 PM

The future of Arizona’s voter-approved income tax increase on high earners could come down to the legal question of whether the money raised for schools will count as grants.

The Arizona Supreme Court heard oral arguments Tuesday in a case seeking to halt implementation of the Invest in Education Act, a citizen initiative nearly 52% of voters approved last November. The measure, known as Prop. 208, subjects taxable income over $250,000 for individual filers and $500,000 for joint filers or heads of households to a 3.5% surcharge to fund education.

But plaintiffs, including top Republican lawmakers, argue that the initiative ...

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