/ Modified feb 9, 2015 4:10 p.m.

Arizona House OKs Indexing for Income Taxes

Party-line vote would allow bracket adjustments to keep taxes from rising on inflation.

AZ House Floor spot The Arizona House of Representatives, in a 2013 floor session.

Legislation automatically adjusting tax brackets each year to account for inflation has passed the Arizona House on a mainly party line vote of 38-21.

House Bill 2001, sponsored by Republican Rep. Justin Olson, prevents taxpayers from being pushed into higher tax brackets if they get small raises. Olson says that a tax increase should occur only as a deliberate action of the Legislature and not in a de facto manner.

Democratic efforts to make the indexing contingent on settling a school funding lawsuit failed last week.

The Republican-controlled Legislature for several years ignored a constitutional requirement to make inflation adjustments in funding for public schools. Last year, a judge ruled and was upheld by the state Supreme Court that the state had to make the inflation payments, of about $317 million.

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