August 19, 2021 / Modified aug 19, 2021 1:07 p.m.

Arizona Supreme Court won’t block new tax on high-earners

The state’s voters approved the tax as part of Prop. 208 in November.

Arizona Supreme Court Arizona Supreme Court building
State of Arizona

The Arizona Supreme Court says a new tax on high earners approved by the state’s voters in November can remain in effect while a lower court determines if the revenue it raises for schools will exceed a constitutional spending limit.

Thursday’s ruling from the high court is a major win for education proponents who worked for years to get the tax increase on the ballot.

Opponents said the new tax will hurt the state’s economy.

The court was considering whether Proposition 208 required a 2/3 vote to be enacted and ruled that voter initiatives do not.

But the court said it can’t yet tell whether the money it raises can be legally spent so sent the case back to the lower court.

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