Known as “The Veto Queen,” Democratic Gov. Katie Hobbs has vetoed the second attempt by the Arizona Legislature to bring Arizona’s tax codes in line with federal tax law changes created by President Donald Trump’s “One Big Beautiful Bill.”
The veto leaves taxpayers in limbo and small business owners, as well as some legislators, outraged.
Arizona State Representative Nick Kupper tweeted, “@GovernorHobbs vetoed another tax conformity package that matched the forms her Dept of Revenue already issued. Her veto letter said anything other than her plan will fail. She seems to think it’s her right to unilaterally set tax policy. Katie, you WILL learn your role.”
Today @GovernorHobbs vetoed another tax conformity package that matched the forms her Dept of Revenue already issued.
Her veto letter said anything other than her plan will fail. She seems to think it’s her right to unilaterally set tax policy.
Katie, you WILL learn your role. pic.twitter.com/V8ccx2QEN5
— Nick Kupper (@realnickkupper) February 13, 2026
In a statement, National Federation of Independent Business (NFIB) State Director Chad Heinrich expressed small business owners’ disappointment in Governor Katie Hobbs’ veto of tax certainty.
“Arizonans deserve better from their elected leaders. Twice, the Legislature has taken responsible action to protect hardworking Arizonans from tax uncertainty. Twice, Governor Hobbs has chosen political gamesmanship instead—turning something as mundane as tax conformity into a partisan game. Because of her actions, Arizona’s tax filing season is in total chaos with taxpayers left both confused and frustrated.”
“Governor Hobbs’ own Department of Revenue has warned that failing to align the tax code with the forms they have already issued could force as many as one-third of filers to submit amended returns, pay again to refile, and owe additional taxes months later. That’s a disaster for taxpayers, the state, and the economy.
“Small business owners are filing their taxes. They’re making decisions daily – who to hire, when to expand, and how to compete. Uncertainty hamstrings their ability to make sound decisions. They are the foundation of our state’s economy, and they need certainty in the state’s tax code now. On behalf of our members and small business owners across Arizona, we’re urging Governor Hobbs to get serious, quit playing games with Arizonans pocketbooks, and give taxpayers certainty.”
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