Signed by Governor Doug Ducey

Vote Smart's Synopsis:

Vote to amend and pass a bill that establishes a tax reform package.

Highlights:

• Requires the director of the joint legislative budget committee and the director of the governor’s office of budgeting to jointly notify the department on or before September 30, 2022, whether the fiscal year 2021-2022 state general fund revenue was $12,782,800,000 or more (Sec. 3A).

• Requires the director of the joint legislative budget committee and the director of the governor’s office of budgeting to jointly notify the department on or before September 30 of each year whether the previous fiscal year state general fund revenue was either of the following (Sec. 3B):

• More than $12,782,800,00 but less than $12,976,300,000; or

• $12,976,300,000 or more.

• Requires the director of the joint legislative budget committee and the director of the governor’s office of strategic planning and budgeting to notify the department on the first occurrence when each state general fund revenue threshold is met (Sec. 3).

• Authorizes a small business taxpayer to elect to file a return for the taxable year (Sec. 4).

• Requires a small business taxpayer subject to the tax imposed by this package to pay the estimated tax during the small business taxpayer’s taxable year if the tax liability is at least $1,000 (Sec. 5).

• Establishes a penalty if a taxpayer fails to pay the full amount of estimated tax (Sec. 5).

• Specifies that the income of estates is subject only to the income tax imposed by this package (Sec. 8A).

• Establishes the income tax to 2.5% of taxable income for taxable years starting on December 31 of the year this notice was provided to the department (Sec. 8).

• Requires the department to adjust the income dollar amount for each rate beginning December 31, 2020 (Sec. 8C).

• Requires additions and subtractions to Arizona small business adjusted gross income to be made only to the extent that they directly relate to their gross income (Sec. 9).

• Allows residents a tax credit against the taxes imposed for net income taxes imposed by and paid to another state or country on income (Sec. 9).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes a tax reform package.

Highlights:

• Requires the director of the joint legislative budget committee and the director of the governor’s office of budgeting to jointly notify the department on or before September 30, 2022, whether the fiscal year 2021-2022 state general fund revenue was $12,782,800,000 or more (Sec. 3A).

• Requires the director of the joint legislative budget committee and the director of the governor’s office of budgeting to jointly notify the department on or before September 30 of each year whether the previous fiscal year state general fund revenue was either of the following (Sec. 3B):

• More than $12,782,800,00 but less than $12,976,300,000; or

• $12,976,300,000 or more.

• Requires the director of the joint legislative budget committee and the director of the governor’s office of strategic planning and budgeting to notify the department on the first occurrence when each state general fund revenue threshold is met (Sec. 3).

• Authorizes a small business taxpayer to elect to file a return for the taxable year (Sec. 4).

• Requires a small business taxpayer subject to the tax imposed by this package to pay the estimated tax during the small business taxpayer’s taxable year if the tax liability is at least $1,000 (Sec. 5).

• Establishes a penalty if a taxpayer fails to pay the full amount of estimated tax (Sec. 5).

• Specifies that the income of estates is subject only to the income tax imposed by this package (Sec. 8A).

• Establishes the income tax to 2.5% of taxable income for taxable years starting on December 31 of the year this notice was provided to the department (Sec. 8).

• Requires the department to adjust the income dollar amount for each rate beginning December 31, 2020 (Sec. 8C).

• Requires additions and subtractions to Arizona small business adjusted gross income to be made only to the extent that they directly relate to their gross income (Sec. 9).

• Allows residents a tax credit against the taxes imposed for net income taxes imposed by and paid to another state or country on income (Sec. 9).

Full Bill Text