PHOENIX — State government stands to gain — and Arizona taxpayers stand to lose — more than $200 million because of the federal tax law changes approved by Congress and signed by President Trump.
A new report by the Department of Revenue, obtained by Capitol Media Services, shows the net increase in state income taxes to Arizona residents will be in the range of $15.6 million for the current budget year that runs through July 1.
But the real difference comes the following budget year when individuals start filing their 2018 calendar year tax returns. They will find that, collectively, they owe $222 million more to the state than they otherwise would had the federal law not been changed; for the following year the figure is nearly $258 million.
For businesses, the additional state income taxes owed will be $13.8 million next year and $27.5 million the year after that.