EXCLUSIVE: Petersen Rails Against Hobbs’ Tax ‘Chaos’

PHOENIX — Arizona Senate President Warren Petersen (R-14) urged Arizonans to file their taxes immediately, despite the uncertainty caused by Governor Katie Hobbs’ vetoes of recent tax conformity legislation. With the April 15 deadline approaching, the GOP leader warned that waiting could increase risks of identity theft and processing headaches for families. Earlier this year, the Arizona Department of Revenue released tax forms and guidance assuming that Hobbs would ensure full conformity with recent federal tax changes.

Senate and House lawmakers advanced bills to align state law with Federal tax forms, deliver targeted relief such as enhanced childcare deductions and retirement provisions, and prevent forced amendments for taxpayers who followed the state’s own instructions. But Hobbs vetoed both measures.

In an exclusive interview with the Arizona Globe, Petersen expressed frustration over Hobbs’ failure to support taxpayers: “This is unprecedented. I don’t think we’ve ever seen a governor’s own agency release guidance to taxpayers, only for the Governor to come out and directly contradict it,” he said. “That’s not just confusing, it’s chaos for people trying to follow the rules, especially small business owners who are making financial decisions in real time.”

The vetoes have left more than a million Arizonans facing the potential need to file amended returns if the impasse continues. In a press release this past Monday, Petersen emphasized that taxpayers should not delay. “Arizonans should go ahead and file. They shouldn’t have to wait or deal with the fallout from this confusion,” He cited a case of a woman whose identity was stolen after she delayed filing her taxes due to the uncertainty. He added, “We sent solutions to the Governor to give taxpayers certainty. She vetoed them. Now families are paying the price.”

Arizona’s Speaker of the House, Steve Montenegro (R-29), placed responsibility squarely in the Governor’s lap: “Let’s be clear. This is a failure of leadership,” he stated. “The Governor’s office issued tax forms based on a law that did not exist, told people to file anyway, and then vetoed the bills that would have fixed the problem. Now families are left wondering whether they will have to redo their taxes.”

The Republican leaders made it clear they will not support any changes that force taxpayers who followed the Department of Revenue’s issued forms to amend their returns or face higher liabilities. They continue to urge prompt filing to avoid identity theft risks and delays as Tax Day nears. Arizona Senate Republicans said they remain committed to delivering certainty for working families, seniors, and small businesses despite the ongoing impasse with Hobbs over tax conformity.