Proposition 208, 207 and 449: The effect on Arizonan’s residential taxes
Dec. 2, 2020
Propositions approved by voters this election will affect the taxes of some Arizonans. To learn about who will be affected and by how much, we spoke with Tom Wheelwright, CEO of WealthAbility.
Proposition 208 was created to provide more funding for Arizona education but it also means a greater tax increase.
“We voted an 80% tax increase on anybody that has net income over $250,000. So, obviously there’s a 80% tax impact on those who make over $250,000,” said Wheelwright.
He explained that small business could be hit harder through this, “they pay income tax individually. So this actually impacts their income from their business. So it’s not just wage earners this impacts its impacts the small businesses, and a lot of small businesses do make over $250,000 a year.”
If a small business makes under $250,000 a year, they are not included in this tax raise.
Those that are affected with higher taxes through Proposition 208 is any single filer earning over $250,000 a year and a couple whom files over $500,000 in total.
Proposition 207 was also passed, the legalization of selling marijuana in the state. This proposition provides a high tax for sellers because marijuana is only legal on a state level and not federally.
A seller of marijuana pays taxes on the finished product. They must, “pay on their gross income, not their net income,” said Wheelright.
Lastly, the Proposition 449 also passed. This puts a minor tax on property which translates back to the Valleywise medical center and funding it to continue running.
Wheelwright believes through this proposition, “you have to have a pretty big property, pretty high value property, to pay any significant amount of tax from this.”