PHOENIX — From Rep. Justin Olson’s perspective, Gov. Katie Hobbs’ decision not to sign full tax conformity legislation has turned what should have been a routine filing season into a preventable problem for Arizona taxpayers. Hobbs vetoed HB 2785 on February 12, 2026, even though the measure was intended to align Arizona law with 2025 tax forms already issued by the Arizona Department of Revenue. 

Olson, the Republican chairman of the House Ways and Means Committee and sponsor of House Bill HB2785, framed the dispute as more than a policy disagreement. In a legislative news release issued after passage of the bill, he said, “This bill makes Arizona’s tax forms legal. It applies the Trump tax cuts to the Arizona income tax code. If the Governor fails to sign this bill, a million Arizonans will be forced to amend their returns and pay more to the state. That is unacceptable and irresponsible.” 

That argument is rooted in the unusual gap between Arizona’s forms and Arizona statute. The Department of Revenue has said taxpayers can file now, but it has also warned that some filers could need to amend later if they claim certain deductions and lawmakers do not ultimately match state law to the forms. ADOR says most taxpayers likely will not need to amend if they take the standard deduction and do not claim deductions tied to overtime compensation, tipped income, qualified vehicle loan interest, or the proposed $6,000 senior deduction. 

For Olson and other Republican lawmakers, that still leaves too much uncertainty for the minority of taxpayers who do plan to claim those benefits. Even though ADOR says those filers would avoid penalties and interest if any amended return is filed by October 15, 2027, the possibility of extra paperwork, added accounting costs, and delayed tax certainty remains central to the Republican critique of Hobbs’ approach. 

Hobbs has argued instead for a narrower “Middle Class Tax Cuts Package,” saying broader conformity issues should be negotiated through the budget. But from Olson’s vantage point, the immediate issue is simpler: taxpayers are already filing under forms the governor’s administration approved, while the law still has not fully caught up.