Measure could be one of two on November ballot seeking voter approval to increase money for public schools.
Monday's vote sends the measure to the Senate.
Bill would have allowed retired military to exempt the first $5,000 of their military pensions from income taxes.
Measure goes against governor's plans that would put additional tax revenue into "rainy day" fund.
Could result in some Arizonans having to file amended state returns once matter is settled by Legislature.
A legislative leader in governor's own party complains "it's a tax increase and the largest one in modern history.''
Realtors formally launched their bid to bar Arizona lawmakers from ever taxing services, even if they also reduced or eliminated taxes on other necessities.
They say they want to take advantage of a new U.S. Supreme Court ruling that lets states collect online sales taxes — but without burdening taxpayers.
Organization, however, won't back a plan to hike taxes on the rich to help fund schools.
Sales-tax idea is unpopular — but so are other funding ideas — as debate continues at Phoenix Capitol.
Critics of the system point to Arizona’s relatively high sales taxes.
In 2007, state government's General Fund budget was $9.6 billion. Today, state lawmakers struggle to meet the state's needs in health care, fa…
Pro golfer Phil Mickelson brought up an important issue that many people around the nation are facing today - they are being overtaxed and ess…