As of July 9, 2025, residents of Arizona can expect to see changes to the state's tax code as part of a new plan aimed at increasing revenue for the state. The plan, which was introduced by Governor Jane Smith earlier this year, includes a number of measures designed to generate additional funds while also providing relief for certain taxpayers.One of the key changes included in the plan is an increase in the state's sales tax rate from 5.6% to 6.2%. This increase is expected to generate an additional $500 million in revenue annually, which will be used to fund various state programs and initiatives. While some critics have raised concerns about the impact this increase could have on low-income families, Governor Smith has assured residents that the plan includes provisions to provide targeted relief for those most affected.In addition to the sales tax increase, the plan also includes a restructuring of the state's income tax brackets. Under the new plan, individuals earning over $250,000 annually will see a slight increase in their tax rate, while those earning under $50,000 will see a decrease. This change is expected to make the state's tax system more equitable and ensure that those with higher incomes contribute their fair share.Governor Smith has described the plan as a necessary step to ensure the long-term financial stability of the state. "Arizona is facing significant budget challenges, and we need to take action now to address them," she said in a statement. "This plan strikes the right balance between generating much-needed revenue and providing relief for those who need it most."The plan has already received support from several key lawmakers in the state legislature, with some stating that they believe it is a step in the right direction towards ensuring Arizona's fiscal health. However, others have expressed reservations about the potential impact on businesses and families, particularly in light of the ongoing economic uncertainty caused by the COVID-19 pandemic.Overall, the introduction of the new tax plan marks a significant development in Arizona's fiscal policy and is likely to be the subject of much debate and discussion in the coming weeks and months. Residents are encouraged to stay informed about the changes and how they may impact their own finances.