By Corinne Murdock |
Gov. Katie Hobbs is now taking credit for the family tax rebate she opposed initially — and had a state agency break the law in doing so, according to legislative leaders.
Hobbs championed the tax rebate on Tuesday with several surprise links crediting herself for the Arizona Families Tax Rebate Program, including an Arizona Department of Revenue (ADOR) application page for the program displaying her headshot. In a video and press release, Hobbs indicated that she played a major role in passing and had always fully supported the initiative.
“I made a promise that when I took office, I would take every opportunity I had to make it easier for Arizonans to provide for their families,” said Hobbs. “I’m so pleased to be able to deliver this relief.”
However, the webpage and promotional material in concert with Hobbs’ announcement runs afoul of the law on the rebate.
“[N]o letter relating to the Arizona families tax rebate issued under this section shall be sent from the governor’s office, be sent on the governor’s letterhead, or reference the governor’s office,” read SB 1734.
Sen. President Warren Petersen (R-LD14) and House Speaker Ben Toma (R-LD27) issued a cease and desist letter to ADOR over Hobbs’ announcement. The letter declared that the application page that Hobbs directed Arizonans to use was an impermissible detour and an illegal expenditure of public funds.
“While any violation of a controlling statute is troubling in its own right, the Department’s letter compounds an institutional insult with injury to Arizona taxpayers by unlawfully expending significant sums of public money to disseminate what is, in part, a political message,” stated the letter.
The budget did include a somewhat prophetic provision concerning Hobbs: a worry that the governor would subvert policy for political gain.
“Animating this provision was the Legislature’s concern that Governor Katie Hobbs would subvert a commonsense policy measure into a self-serving political stunt on the taxpayers’ dime,” stated the cease and desist letter. “[T]he Department impermissibly misdirected rebate recipients on a detour through the Governor’s curated, self-promotional online platform. This is clear violation of Arizona law.”
State Sen. Jake Hoffman (R-LD15), chairman of the Arizona Freedom Caucus, lamented that ADOR would be on the hook for Hobbs’ public relations display.
“The sad reality exposed by this situation is that Katie Hobbs doesn’t care about anyone other than herself. She tried to play fast and loose with the law, as she so often does, and forced Director Woods to violate it,” said Hoffman. “Thanks to Hobbs, he is now personally liable for $2M+ in illegally spent funds, a 20 percent penalty, court costs, and attorneys’ fees. And with a statute of limitations of 5 years, Katie has given Director Woods the gift of many sleepless nights for years to come.”
Hoffman advised other government agencies to take heed of ADOR’s alleged mistake by resisting pressure from the governor to act and by keeping receipts for everything the governor and her office may request.
Concerning Hobbs taking credit for the program, State Sen. President Pro Tempore T.J. Shope (R-LD16) indicated in a response post that she wanted “no part” of it. Shope said credit was due to the Arizona Freedom Caucus.
“I know the Governor wanted no part of this tax rebate but thankfully, the @AZSenateGOP & @AZHouseGOP caucuses, led by the @AZFreedomCaucus, stood strong and demanded it be part of the State Budget,” said Shope.
State Rep. Austin Smith responded that no House or Senate Democrats contributed to the tax rebate package initiated by the Arizona Freedom Caucus.
Hobbs’ spokesman, Christian Slater, told Capitol Media Services that the governor had supported the tax rebate by signing the budget, despite her initial opposition to the program.
The Sen. Republican Caucus similarly criticized Hobbs for failing to ascribe credit to those who came up with and fought for the rebate.
“You’re a little late to the party,” said the caucus. “Glad you love Republican policies as much as we do. They really do make our state a better place to live, work, and play.”
Sam Stone, “Breaking Battle” radio show host and former Phoenix City Council candidate, called Hobbs’ 180 on the program “pathetic.”
The Arizona Families Tax Rebate Program entitles Arizona taxpayers with dependent children a single payment of up to $750. Approximately 750,000 Arizona families may be eligible.
The rebate metes out to $250 per dependent under the age of 17 and $100 per dependent over the age of 17 as claimed on 2021 returns. A taxpayer can’t claim more than three dependents, regardless of age.
Eligible taxpayers are those who: filed a full-year resident personal income tax return for the 2021 tax year; claimed at least one dependent tax credit for the 2021 tax return; filed the 2021 tax year Arizona personal income tax return as the only taxpayer on a single, married filing separate, or Head of Household return, or as the primary or first-listed taxpayer if filed jointly; and had at least $1 in Arizona personal income tax liability in tax year 2021, 2020, or 2019.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
