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Choose: Arizona’s tax on rich to fund training can take impact – Arizona Day by day Star

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And even if there is a legal problem — a point Hannah does not concede — he said it would require a full-blown trial, complete with evidence, to reach such a conclusion.

In the meantime, however, he said there is no immediate reason to declare the law or this provision illegal.

Hannah pointed out that while the higher tax rate officially took effect Jan. 1, it won’t really be an issue for most people until April 2022 when they pay their income taxes. And even for people whose income is high enough to require them to pay estimated taxes, the judge said the worst that could happen is they pay a little more now and then could get a refund if Proposition 208 eventually is declared illegal.

All that technically leaves the door open for the foes of the tax, who tried unsuccessfully to keep the measure off the ballot in the first place, to renew their arguments at a trial. But they have an uphill fight.

In refusing to issue the injunction, the judge had to consider whether the challengers had a likelihood of success. And he said that does not appear to be the case.

Jonathan Riches, an attorney for the Goldwater Institute, called the ruling “unfortunate.” But he pointed out that Hannah is giving foes another chance to make their case at trial.

“We are confident that once constitutional flaws with Prop. 208 are fully and finally litigated, our courts will act to protect Arizona taxpayers against the grave threat of its burdensome and permanent tax increase,” he said.

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