The Arizona Senate Appropriations Committee has greenlit a new tax rebate initiative, despite looming fiscal challenges. The proposed legislation, SB 1148, aims to provide a one-time $250 rebate to taxpayers aged 65 and older.

Originally, Sen. Anthony Kern, R-Glendale, suggested extending the rebate to individuals aged 55 and above. However, after deliberation, the committee settled on the age of 65, partly to reduce costs. Nevertheless, Sen. Jake Hoffman, R-Queen Creek, estimated the program’s expense at approximately $390 million.

Sen. Kern defended the proposal, drawing parallels to a similar rebate program implemented in the previous legislative session. He argued that seniors, grappling with inflation, warrant financial relief akin to what families received previously.

Notwithstanding, opposition voices, including Democratic Senator Lela Alston, expressed reservations due to the state’s precarious financial situation. Concerns were echoed by Republican Senator Ken Bennett, who questioned the feasibility of the rebate amidst existing budget constraints.

Sen. Hoffman criticized dissenting opinions, emphasizing the importance of returning funds to taxpayers. The committee’s decision reflects a broader allocation of resources, including funding for disability services and grants for public school initiatives like community gardens.

Eligibility for the rebate is contingent upon filing a full-year resident tax return for 2022 and demonstrating a minimum tax liability in preceding years. Spouses both aged 65 or older will qualify for the rebate, whereas if only one spouse meets the age requirement, a single check will be issued.

The fate of the proposed rebate hinges on forthcoming negotiations between Republican lawmakers and Governor Hobbs for the state’s next fiscal year budget. Notably, the legislation includes provisions to prevent any attribution of the rebate to the governor’s office, reflecting past tensions over credit claims.

As discussions unfold, the initiative underscores competing priorities amidst economic uncertainty, shaping Arizona’s fiscal landscape for the foreseeable future.