(AP) A state official says Arizona’s tax deduction for personal loans could cost taxpayers more than $6.4 million in the 2018-19 tax year, including interest payments on personal loans.
The Legislative Analyst’s Office says the deduction could raise an estimated $2.4 billion in revenue in 2018-2019.
State officials are trying to reduce the number of people making personal loans by lowering the limit on their deductions.
In January, the state cut the deduction for the personal loans to $100,000.
Doug Ducey has proposed an increase to $200,000, which would still leave many taxpayers with a tax bill of at least $9,000 for every dollar they owe.
Ducey says it’s time to get rid of the deduction, which he says has helped thousands of families pay down their debts.