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House OKs tax hike for unemployment benefits

The Arizona House passed a temporary tax increase for employers designed to help the state repay borrowed funds for unemployment benefits.

The so-called “special assessment” would be levied for two years.

Supporters say the tax increase would help the state avoid having federal officials impose a larger tax hike.

Arizona is one of several states that borrowed money from the federal government because state unemployment trust funds were emptied by the recession.

The legislation was originally proposed in January, but then was put on hold for two months because of political sensitivities associated with tax increases.

The 45-15 vote Tuesday in the House sends the bill to Gov. Jan Brewer.

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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