In an op-ed for azCentral, Arizona House Speaker Steve Montenegro describes the Legislature’s efforts to align the state’s tax code with the changes made to the federal tax code in 2025.

Noting the conflicting tax guidance from the Hobbs Administration, Montenegro writes:

“The problem now is more than a clash of principles; it is a race against the clock. The governor’s Department of Revenue has already issued tax forms. Taxpayers have just three months to file, and the sooner refunds are returned to people’s pocketbooks, the better. But the Hobbs tax forms are flawed. They do not match her claimed plan for tax conformity, which was not made public until Republicans had already passed a full package through the Legislature.”

READ: ‘We Can’t Wait’ Arizona Small Business Owners Call on Governor Hobbs to Support Tax Conformity

CLICK HERE to tell your state lawmakers to stand with small businesses and support tax conformity. CLICK HERE to read the op-ed. Excerpts are below.

Hobbs vetoes while affordability crisis grows 

Arizona House Speaker Steve Montenegro

azCentral

Jan. 23, 2026

Arizona has two Katie Hobbs. Candidate Katie Hobbs said the word “affordability” 14 times in her State of the State address on Jan. 12. Governor Katie Hobbs vetoed affordability by Jan. 16.

Affordability, inflation and government spending go hand in hand. […] In the middle of an affordability crisis, Arizona House Republicans crafted a solution to return some of that surplus to citizens through tax conformity.

Each year, the Legislature conforms state law to federal tax changes through a process known as tax conformity. Because of the scale of those changes last summer, House Republicans worked with our Senate counterparts in November and called on the governor to join us in a special session. What did the governor version of Katie Hobbs do? Nothing.

Filling that leadership vacuum, House and Senate Republicans put forward a tax relief plan and introduced it days before the legislative session even began. […] It helps small businesses by simplifying filing and accelerating depreciation. It helps seniors by providing deductions for retirement income.

Altogether, our plan returns $1.1 billion to taxpayers over the next three years. After vetoing it by 9 a.m. on a Friday, Governor Hobbs rolled out a budget carrying $650 million in new taxes and fees by noon. […]

The problem now is more than a clash of principles; it is a race against the clock. The governor’s Department of Revenue has already issued tax forms. Taxpayers have just three months to file, and the sooner refunds are returned to people’s pocketbooks, the better. But the Hobbs tax forms are flawed. They do not match her claimed plan for tax conformity, which was not made public until Republicans had already passed a full package through the Legislature. Worse, the forms include a bad policy. […]

Arizona’s affordability crisis cannot afford either.

CLICK HERE to tell your state lawmakers to stand with small businesses and support tax conformity.