01 December 2020 Arizona voters approve ballot measure to impose an additional income tax surcharge for high-income individuals By a margin of 52% to 48%, Arizona voters approved Proposition 208 that, effective January 1, 2021, imposes an additional 3.5% income tax surcharge on individuals with annual taxable income exceeding $250,000 for single and married filing separately ($500,000 for married and head of household filers). The revenue generated from this income tax surcharge will fund public education. (Arizona Secretary of State website.) The proposition language does not specify whether employers will be responsible for withholding the additional surcharge. If withholding of the additional income tax is required, the 2021 Arizona Form A-4, Employee's Arizona Withholding Election, once released, should reflect this information. (EY Tax Alert 2020-2595, 10-30-2020.)
Document ID: 2020-2773 | |||||||||
