The levy placed on Arizona hospitals generates $265 million per year to pay for expansion of the state’s Medicaid program, which covers about 400,000 Arizona residents. However, Republican lawmakers are seeking to get rid of the levy by requesting the Arizona Supreme Court to classify the levy as a tax.
If the Arizona Supreme Court rules that the levy is a tax rather than an assessment placed on hospitals, lawmakers must revote on the legislation because Arizona’s Constitution mandates that taxes can only be enacted with a two-thirds vote in the Senate and House, according to the report.
Previous court rulings rejected the Republican lawmakers’ argument that the assessment is a tax.
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