Legislation to levy a temporary tax increase on Arizona employers to repay borrowing for unemployment benefits is moving again at the Legislature after being stalled for nearly two months.
A Senate committee on Thursday voted 6-1 to authorize the Department of Economic Security to levy what’s called a “special assessment” for two years.
Arizona is among many states that have borrowed money from the federal government because the states’ unemployment trust funds have been emptied by the recession.
Business lobbyists say approving a phased-in temporary tax increase designed by the state avoids having the federal government impose one that could shock employers.
Marcus Osborn of the Arizona Chamber of Commerce and Industry says the legislation has been on hold since January because of political sensitivities associated with tax increases.