Legislation that is heading to the state Senate floor would give Arizona taxpayers who are 65 or older a $250 rebate.
The price tag would be $390 million as the bill stands. It comes as the state is currently facing a budget deficit.
Arizona state Sen. Anthony Kern (R-Glendale) says he modeled the bill off a family income-tax rebate last year that got approval from Democratic Gov. Katie Hobbs.
It gave families $250 for every child younger than 17.
The IRS now says that rebate is subject to federal taxes, which Attorney General Kris Mayes is fighting in court.
If Kern’s bill moves forward, it will become part of budget negotiations between the Legislature and governor.
