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Business owners who make enough to be affected by Proposition 208 would have the option to pay a 4.5% tax rate, the same as they paid before voters imposed the 3.5% surcharge.

This comes a month after a trial court judge refused to temporarily block Proposition 208 from taking effect in Arizona.

Justices on the Arizona State Supreme Court appear to cast doubt on whether proceeds from new taxes collected under Prop 208 can be legally spent on education.

Prosecutors in Arizona are accusing a company commissioned to gather signatures for the Proposition 208 campaign of giving illegal bonuses to gatherers.

The ruling from Maricopa County Superior Court Judge John Hannah was widely expected after the Supreme Court ruled in August that the Proposition 208 tax was unconstitutional if it put schools above a legal spending cap.

The court rejected opponents' arguments that Proposition 208 required a 2/3 vote to be enacted as required for tax increases imposed by the Legislature. But the court said it can’t yet tell whether the money it raises can be legally spent so it sent the case back to the lower court.

A lawsuit was brought against Arizona's Prop 208 on Nov. 30. The prop was passed and is for education funding, but the lawsuit claims it isn't constitutional.

Progressive groups that convinced voters last year to raise taxes on the wealthy to boost school funding have filed paperwork to block big new tax cuts enacted by the Republican-controlled Arizona Legislature and signed by GOP Gov. Doug Ducey this week.

Proposition 208, which voters passed in November, imposes a 3.5% tax surcharge on income above $250,000 for individuals or above $500,000 for couples.

Funding for education has been a hot topic in our state and now voters will get to decide on a proposition that supporters say does that, but not everyone agrees.