Budget and Tax


HB2081 - Income tax; subtraction; tipped wages
Sponsor: Rep. Gail Griffin (R)
Summary: Allows compensation received as tips during the taxable year that are reported to the employer in compliance with Arizona and federal law to be deducted from Arizona income tax, to the extent they are not already deducted or part of a deduction, starting on January 1, 2025. AS PASSED HOUSE.
Comment:
Staff 2
  01/15/2025 11:01 AM

1/14 Added to BT tracking

Last Action:
03/11/2025 
S - DP   - Senate Appropriations
HB2118 - TPT; sourcing; business location; receipt
Sponsor: Rep. Neal Carter (R)
Summary: An order in transactions involving tangible personal property and shared vehicles is considered "received" at a business location (defined) of the seller when all necessary order information is received, regardless of where the order is approved or the purchaser’s location; excludes the location of servers transmitting order information from determining where the order is received. The changes apply to taxable periods starting the month after the act’s effective date. AS PASSED HOUSE.
Comment:
Staff 2
  01/15/2025 11:04 AM

1/13 Added to BT tracking

Last Action:
02/26/2025 
S - Senate 2nd Read
HB2119 - Model city tax code; notice
Sponsor: Rep. Neal Carter (R)
Summary: Requires a municipality that proposes an ordinance to adopt or repeal a model or local option in the model city tax code to notify all businesses in the affected business classification via mail at least 60 days before the date the ordinance is approved or rejected by the governing body of the municipality. Excludes ordinances that impose a use tax or a model or local option to exempt a city or town from a use tax, or a two-tiered tax rate structure for retail sales. AS PASSED HOUSE.
Comment:
Staff 2
  01/15/2025 11:04 AM

1/14 Added to BT tracking

Staff 2
  01/22/2025 3:12 PM

1/22 BT recommends supporting

Staff 2
  01/27/2025 2:06 PM

1/24 PA approved supporting

Last Action:
03/25/2025 
S - Senate Minority Caucus - Y
HB2136 - Industrial development bonds; preapproval; threshold
Sponsor: Rep. Selina Bliss (R)
Summary: Lowers the threshold from seven to three percent of the total statewide population of a county or municipality in order for corporations to issue bonds.
Comment:
Staff 2
  01/15/2025 11:03 AM

1/14 Added to BT tracking

Last Action:
01/22/2025 
H - House 2nd Read
HB2345 - Loan agreements; escrow
Sponsor: Rep. Laurin Hendrix (R)
Summary: Restricts an escrow agent from using monies in an escrow account to making a onetime payment or multiple payments pursuant to the loan agreement, unless the loan agreement specifically states that monies may be used for another purpose, a deed in lieu of foreclosure agreement specifically states the monies may be used for another purpose and that purpose is stated in the deed in lieu of foreclosure agreement, an agreement is entered into by the parties to negotiate a settlement of the loan and that agreement includes a provision for the use of the monies, or an agreement is entered into by the parties that provides for a portion of the escrow account to be used to bring an account that is in arrears to current status. AS PASSED HOUSE.
Comment:
Staff 2
  01/20/2025 9:48 AM

1/16 Added to BT tracking

Last Action:
03/27/2025 
G - Transmit to Governor
HB2389 - Business personal property; exemption.
Sponsor: Rep. Neal Carter (R)
Summary: Exempts locally assessed business personal property from property taxation beginning January 1, 2026. Repeals statutes related to the taxable value of personal property, reducing the minimum value for property in use and the taxable value of solar energy devices classified as personal property. Repeals statutes related to the taxable value of personal property, reducing the minimum value for property in use and the taxable value of solar energy devices classified as personal property. Makes technical and conforming changes. AS PASSED HOUSE.
Comment:
Staff 2
  01/20/2025 9:46 AM

1/16 Added to BT tracking

Last Action:
03/18/2025 
S - DP   - Senate Appropriations
HB2421 - Corporate income tax rate; reduction
Sponsor: Rep. Alexander Kolodin (R)
Summary: Sets the percent of taxable net income to 4.9 from January 1, 2017 through December 31, 2025. Sets the percent of taxable net income starting January 1, 2026 at 2%.
Comment:
Staff 2
  01/20/2025 9:41 AM

1/17 Added to BT tracking

Last Action:
01/28/2025 
H - House 2nd Read
HB2422 - Income tax; deduction; tuition; loans
Sponsor: Rep. Alexander Kolodin (R)
Summary: Permits a taxpayer, when computing taxable income, to deduct the amount paid by that taxpayer during the taxable year for tuition to a public, nonprofit or private college, university, Community College or other postsecondary educational institution, or for student loan repayment. Establishes that this deduction applies to all taxable years starting January 1, 2025.
Comment:
Staff 2
  01/20/2025 9:40 AM

1/17 Added to BT & EW tracking

Last Action:
01/28/2025 
H - House 2nd Read
HB2457 - Fire districts; formation; county supervisors
Sponsor: Rep. David Marshall, Sr. (R)
Summary: Details how, until December 31, 2027, a county with a population of less than 500,000 persons can create a fire district, including outlining how a written request must be formatted, The Board of Supervisors consideration process, including receiving testimony from the public, modifying district boundaries to ensure that no one property in the prosed boundaries of the district will be required to contribute more than 2 1.2% of the total funding proposed,  and how the issue should be submitted to a vote of qualified electors within the proposed boundaries of the district. Requires that any election comply with general election laws and if approved by 65% of the votes cast at the formation election, requires the Board of Supervisors to declare the fire district formed and to name three persons who are residents of the fire district to serve on the fire district organizing Board of Directors until Fire District Board Members are elected as provided by law. Requires the Board of Supervisors after declaring the fire district formed to transmit to the County Assessor a certified copy of the description of the boundaries of the new fire district. Stipulates that a fire district formed under this bill possesses all the powers and duties of an existing fire district. Prohibits fire districts from being formed via this process after December 31, 2027.
Comment:
Staff 2
  01/22/2025 3:19 PM

1/22 Added to BT tracking

Staff 2
  02/10/2025 7:14 PM

2/10 BT recommends opposing

Staff 2
  02/25/2025 8:53 AM

2/21 PA approved opposition

Last Action:
02/10/2025 
H - DP   - House Public Safety & Law Enforcement
HB2515 - Truth in taxation; bonds; notices
Sponsor: Rep. Justin Olson (R)
Summary: Requires if an election is held to change the purpose or list of capital projects authorized by prior voter approval to issue bonds pursuant to this legislation, or to extend the time to issue bonds pursuant to this legislation, the County School Superintendent to prepare an informational pamphlet that mentions The tax rate associated with each of the proposed capital improvements and the estimated cost of each capital improvement for the owner of a single family home that is valued at $100,000 and $400,000. Provides verbiage that must accompany any public notices. (More.) AS PASSED HOUSE.
Comment:
Staff 2
  01/20/2025 9:37 AM

1/17 Added to BT tracking

Staff 2
  01/22/2025 3:12 PM

1/22 BT recommends supporting

Staff 2
  01/27/2025 2:06 PM

1/24 PA approved supporting

Last Action:
03/18/2025 
S - Senate Minority Caucus - Y
HB2592 - Taxation; repeal; selected exemptions
Sponsor: Rep. Quantá Crews (D)
Summary: Eliminates various exemptions from taxation, including the exemptions from the retail classification of transaction privilege taxes for sales of warranty or service contracts and sales of stocks and bonds. For tax years beginning with 2024, the income tax rate for corporations is increased to 5.5 percent, from 4.9 percent. Due to a potential increase in state revenue, this legislation requires the affirmative vote of at least 2/3 of the members of each house of the Legislature for passage, and becomes effective on signature of the Governor.
Comment:
Staff 2
  01/20/2025 9:26 AM

1/17 Added to BT tracking

Last Action:
01/28/2025 
H - House 2nd Read
HB2601 - Income tax; exemption; minors
Sponsor: Rep. Nick Kupper (R)
Summary: Stipulates that no amount shall be deducted or retained from the 1st $50,000 of wages paid to an employee who was under 18 years of age. Exempts an individual under the age of 18 whose gross income is $50,000 or less from paying an income tax, pursuant to state law, Regardless of the source or nature of the income. Requires the Arizona Department of Revenue (ADR) to develop a process for verifying eligibility for the exemption pursuant to this legislation. The effective date our taxable years beginning January 1, 2025. AS PASSED HOUSE.
Comment:
Staff 2
  01/20/2025 9:23 AM

1/17 Added to BT tracking

Last Action:
03/18/2025 
S - DP   - Senate Appropriations
HB2650 - Social credit; use; prohibition
Sponsor: Rep. Steve B. Montenegro (R)
Summary: Prohibits the state from requiring a Bank or financial institution from using a social credit score to determine credit or loan worthiness.
Comment:
Staff 2
  01/20/2025 9:21 AM

1/17 Added to BT tracking

Last Action:
01/16/2025 
H - Introduced
HB2660 - Affordable housing tax credits; extension
Sponsor: Rep. Justin Wilmeth (R)
Summary: Allows tax credits to a taxpayer for qualified projects, and qualified affordable housing projects, in the amount that the Arizona Department of Revenue (ADR) determines, pursuant to affordable housing tax credit requirements. Requires the ADR allocate $4,000,000 in tax credits for the calendar years of 2002 through 2025, and $10,000,000 in tax credits for the years 2026 through 2030 and stipulates that a credit claimed in 2026 may not be claimed until the federal FY beginning October 1, 2022. Extends selected ARS repeal dates to December 31, 2030 from December 31, 2025.
Comment:
Staff 2
  01/20/2025 9:21 AM

1/17 Added to EW & BT tracking

Staff 2
  01/22/2025 3:13 PM

1/22 BT recommends supporting

Staff 2
  01/27/2025 2:10 PM

1/27 EW recommends supporting

Staff 2
  01/27/2025 2:10 PM

1/24 PA approved supporting

Last Action:
02/25/2025 
H - Hearing Scheduled - 02/25/2025 - Second Reading, House Floor
Ch. 1, Laws 2025 (HB2688 - Internal revenue code; conformity.)
Sponsor: Rep. Justin Olson (R)
Summary: Defines “Defines Internal Revenue Code” (defined) for the purposes of computing the Arizona income tax as applying to taxable years beginning on January 1, 2025 and including all amendments up and until January 1, 2025. Includes provisions that went into effect in 2024 and excludes any changes after January 1, 2025. Stipulates that for the taxable years of December 31, 2023 through December 31, 2024, Internal Revenue Code means the United States Internal Revenue Code of 1986, as amended and including those provisions that are retroactively effective during the taxable years beginning January 1, 2023 through December 31, 2024. Strikes other applications of the Internal Revenue Code pertaining to specific years, amendments, provisions, Acts and funds. (More.) AS PASSED HOUSE
Comment:
Staff 2
  01/28/2025 10:48 AM

1/28 Added to BT tracking

Staff 2
  02/10/2025 7:16 PM

2/10 BT recommends supporting

Staff 2
  02/25/2025 8:53 AM

2/21 PA approved support

Last Action:
02/28/2025 
G - Signed
HB2704 - Tax; distribution; county stadium district
Sponsor: Rep. Jeff Weninger (R)
Summary: Requires the Arizona State Treasurer, beginning the first day of the month following the effective date of this legislation and each month thereafter, to transmit to the County Stadium District any monies received pursuant to this legislation and to deposit those funds in the County Stadium District Fund. Defines the amounts to be transmitted and the origin of the tax amounts based on state tax amount calculations. Requires, beginning the first day of the month following the effective date of this legislation and each month thereafter, that the Arizona Department of Revenue (ADR) separately account for revenues under various category and tax classifications that are attributable to a Major League Baseball (MLB) Franchise facility owned and operated by a county stadium district, pursuant to state law. Defines what taxes are to be earmarked for the County Stadium District Fund, how those taxes are to be derived, and classified, and how taxation amounts are to be calculated, starting on October 1, 2025. Defines events and organizations responsible for excise taxes and how collected revenue is to be managed and calculated. Requires professional sports franchises to relinquish tax information for each resident and nonresident employee who rendered services in Arizona for the calendar year, and outlines penalties for noncompliance. Stipulates what funds are to be used to reconstruct, repair, equip, maintain or improve an MLB facility owned and operated by a county district. (More.) Outlines mandatory reporting requirements and how monies in the County Stadium District Fund may be used. Lists penalties for noncompliance. (More.) AS PASSED HOUSE.
Comment:
Staff 2
  01/31/2025 6:06 PM

1/31 Added to BT & PA tracking

Staff 2
  02/09/2025 4:47 PM

2/6 PA recommend and approved support

Last Action:
03/26/2025 
S - Hearing Scheduled - 04/01/2025, 9:00 AM - Senate APPROP, SHR 109
HB2722 - Public resources; expenditures; prohibition
Sponsor: Rep. Neal Carter (R)
Summary: Requires that all use of public monies by a “public entity” (defined) must benefit the public by intent and be for a “public purpose” (defined), is supported by “consideration” (defined), and the public entity must retain continuing control over the funds. Allows the Arizona Attorney General or a taxpayer in Arizona to file an action in a court of general jurisdiction to challenge an expenditure, loan or use of “public resources” (defined). Outlines how a plaintiff in that situation would prevail in court. Entitles this legislation the “Taxpayers Protection Act.” Modifies the chapter heading of Title 1, Chapter 5, ARS, from “Public Programs” to “Public Resources”. AS PASSED HOUSE.
Comment:
Staff 2
  02/05/2025 2:30 PM

2/5/25 Added to BT tracking

Staff 2
  03/07/2025 2:20 PM

3/7 PA recommend and approved an oppose position

Last Action:
03/24/2025 
S - Senate Consent Calendar - Object: Yes
HB2766 - Municipal tax; exemption; food
Sponsor: Rep. Leo Biasiucci (R)
Summary: Requires any taxes levied by any Arizona taxing jurisdiction on candy, confectionaries, soft drinks and soda for home consumption be applies uniformly. Prohibits a city, town or taxing jurisdiction from levying a transaction Privilege, sales, use, franchise, or other similar tax or fee on the sale of food items, except candy, confectionaries, soft drinks and soda, various items pursuant to state law and vitamins that are intended for human consumption. Effective date is January 1, 2026.
Comment:
Staff 2
  02/09/2025 4:51 PM

2/6 Added to BT tracking

Last Action:
02/11/2025 
H - House 2nd Read
HCR2003 - Expenditure limit; school districts; authorization
Sponsor: Rep. Matt Gress (R)
Summary: Authorizes upon the approval of at least 2/3 of the membership of each House of the Arizona legislature that in FY 2005-2026, school districts may spend local revenues in excess of the expenditure limitation prescribed pursuant to Article 9, section 21, constitution of Arizona.
Comment:
Staff 2
  01/10/2025 3:26 PM

1/9 Added to BT & EW tracking

Staff 2
  01/22/2025 3:14 PM

1/22 BT recommends supporting

Staff 2
  01/27/2025 2:10 PM

1/27 EW recommends supporting

Staff 2
  01/27/2025 2:10 PM

1/24 PA approved supporting

Last Action:
02/25/2025 
H - House Minority Caucus - Y
HCR2012 - Income tax; rate; reduction
Sponsor: Rep. Alexander Kolodin (R)
Summary: The 2026 general election ballot is to carry the question of whether to amend Arizona State Statutes to require each public school in Arizona to ensure that all English language learners are given the resources needed to master the English language. Provides that the parent or legal guardian of any student in Arizona has legal standing to sue for the enforcement of this legislation, and, if successful, shall be awarded normal and customary attorney fees and actual and compensatory damages, but not punitive or consequential damages. Adds evidence-based models of structured English immersion to be part of the overall Arizona Board of Education approach to teaching students English. Permits school districts and charter schools to establish dual language immersion programs for native and non-native English speakers. Requires public schools to provide students with effective and appropriate instructional methods to establish English language acquisition programs, and those schools to solicit community and stakeholder input on both the methods and programs. Requires the Legislative Council Staff to prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the 57th legislature, first regular session.
Comment:
Staff 2
  01/21/2025 8:31 AM

1/20 Added to BT tracking

Last Action:
01/22/2025 
H - House 2nd Read
HCR2021 - Food; municipal tax; exemption
Sponsor: Rep. Leo Biasiucci (R)
Summary: The 2026 general election ballot is to carry the question of whether to amend Arizona Revised Statutes to set a deadline of June 30, 2027 for the Transaction Privilege Tax to be applied uniformly with respect to all food, and to prohibit any additional tax or fee to be assessed or applied with respect to any food item, and to apply that mandate to Arizona and its cities and towns.
Comment:
Staff 2
  01/21/2025 8:31 AM

1/20 Added to BT tracking

Last Action:
03/24/2025 
S - DP   - Senate Finance
SB1013 - Fentanyl; possession; probation ineligibility (Municipalities; counties; fee increases; vote)
Sponsor: Sen. Warren Petersen (R)
Summary: Prohibits a Common Council or County Board of Supervisors from imposing or increasing any assessment, tax or fee without a two-thirds vote of the governing body. Stipulates a municipality’s or county’s ability to do such, provided the two-thirds vote authorizes the imposition or increase in any assessment, tax or fee, is not subject to further regulation by the applicable municipality or county. AS PASSED SENATE.
Comment:
Staff 2
  02/09/2025 4:58 PM

2/6 Added to BT tracking

Last Action:
03/26/2025 
H - DPA - House Committee of the Whole
SB1050 - GPLET; notice; abatement period
Sponsor: Sen. Venden "Vince" Leach (R)
Summary: Requires a government lessor to include the lease in a public database on the website of the applicable county, city or town within 30 days of entering into a lease for the occupancy of a government property improvement. Defines the information that must be included in the government lessor’s public database and on any official submissions to the County Treasurer. Requires that by February 15th of each year, the county treasurer will submit a report to the Arizona Department of Revenue (ADOR) and requires ADOR to post the report on its website within 30 days of receipt. Defines notice requirements for a government lessor. Defines criteria for approving a lease between a prime lessee and a government lessor for which the tax is abated pursuant to state law, but that does not meet all the criteria for Arizona tax rate laws and schedules. Stipulates that this act applies to agreements entered into starting on January 1, 2026. Defines abatement limitations pertaining to development agreements for the lease of government property improvements are to be treated.  (More.) AS PASSED SENATE.
Comment:
Staff 2
  01/15/2025 11:01 AM

1/14 Added to BT tracking

Staff 2
  01/22/2025 3:15 PM

1/22 BT recommends opposing

Staff 2
  01/27/2025 2:11 PM

1/24 PA approved opposition

Last Action:
03/26/2025 
H - DP - House Committee of the Whole
SB1067 - Auditor general; appropriation (Community college districts; tax rate)
Sponsor: Sen. Mark Finchem (R)
Summary: Appropriates $2,000,000 from the Arizona State General Fund in FY 2025-2026 to the Arizona Auditor General for software to be used to conduct audits of state agencies and school districts. Exempts the appropriation from lapsing of appropriations provisions. AS PASSED HOUSE.
Comment:
Staff 2
  01/15/2025 11:00 AM

1/14 Added to BT & EW tracking

Staff 2
  01/27/2025 3:16 PM

1/27 EW recommends opposing

Staff 2
  02/09/2025 4:45 PM

2/6 PA approved opposition

Last Action:
03/17/2025 
H - Hearing Scheduled - 03/17/2025 - Second Reading, House Floor
SB1069 - Personal property exemption; increase
Sponsor: Sen. J.D. Mesnard (R)
Summary: Increases the exemption for property taxes for property used for agricultural purposes or Class 1 personal property that is used in a trade or business, per state law, to $500,000. Effective date is January 1, 2026. AS PASSED SENATE.
Comment:
Staff 2
  01/15/2025 11:04 AM

1/14 Added to BT tracking

Staff 2
  01/22/2025 3:16 PM

1/22 BT recommend supporting

Staff 2
  01/27/2025 2:11 PM

1/24 PA approved supporting

Last Action:
03/05/2025 
H - DP   - House Ways & Means
SB1080 - Tax credit review committee; standard
Sponsor: Sen. Janae Shamp (R)
Summary: Requires the joint legislative income tax credit review committee to include the estimated revenue impact of a tax credit, and whether adequate protections are in place to ensure the impact of the credit in future years does not substantially increase beyond the estimated revenue impact of the credit as criteria to determine the tax credit’s success or failure.
Comment:
Staff 2
  01/21/2025 8:27 AM

1/20 Added to BT tracking

Last Action:
02/03/2025 
S - HELD - Senate Finance
SB1094 - Business; discrimination prohibition; social criteria
Sponsor: Sen. Jake Hoffman (R)
Summary: Prohibits financial institutions, insurers and credit reporting agencies from discriminating based on political affiliation, any social credit or other type of environmental or governmental score. In order to offer investments containing subjective standards, the standards must be fully disclosed and explained to potential customers or investors before entering into a contract. Declares this issue a matter of statewide concern. AS PASSED SENATE.
Comment:
Staff 2
  01/21/2025 8:26 AM

1/20 Added to BT tracking

Staff 2
  01/22/2025 3:16 PM

1/22 BT recommends opposing

Staff 2
  01/27/2025 2:12 PM

1/24 PA approved opposition

Last Action:
03/25/2025 
H - DP   - House Commerce
SB1121 - Property tax; limited value; methodology
Sponsor: Sen. J.D. Mesnard (R)
Summary: Requires the county assessor to determine the level or percentage of full cash value to be established pursuant to this legislation using either all parcels in the county that are of the same or similar user classification, or, parcels in each market established by the county assessor in the county that are of the same or similar use or classification.
Comment:
Staff 2
  01/21/2025 8:22 AM

1/20 Added to BT tracking

Last Action:
02/03/2025 
S - DP   - Senate Finance
SB1122 - Property tax exemptions; inflation adjustment
Sponsor: Sen. J.D. Mesnard (R)
Summary: Requires the Arizona Department of Revenue (ADR) to calculate by December 31 of each year the total allowable exemption amount based on the average annual percentage increase, if any, in the GDP price deflator in the two most recent complete state fiscal years, and, starting in 2025, based on the average annual percentage increase, if any, in the “Federal House Price Index” (defined) for the two most recent complete fiscal years, and the total income limits amount to qualify for an exemption, as defined by law, to be based on the average annual percentage increase, if any, in the GOP price deflator in the two most recent complete state fiscal years. 
Comment:
Staff 2
  01/21/2025 8:22 AM

1/20 Added to BT tracking

Last Action:
03/25/2025 
G - Transmit to Governor
SB1144 - Jail facilities excise tax; extension
Sponsor: Sen. Kevin Payne (R)
Summary: Permits a county Board of Supervisors of any county that levies a jail facilities excise tax, pursuant to state law, by resolution before the expiration date of that tax, to call for a county wide general election to authorize the levy of a transaction privilege tax in addition to all other taxes. Upon approval by voters, the county in question shall levy, and the Arizona Department of Revenue (ADR) shall collect, the tax at rates of not more than 4% of the Transaction Privilege Tax Rate, pursuant to state law. Defines the verbiage that must be in the resolution, the schedule for the tax to be levied and the point at which the tax sunsets. Requires the State Treasurer, on a monthly basis, to transmit the net revenues collected pursuant to this legislation. Permits a county treasurer to disperse revenues from the tax only to finance construction and renovation of adult and juvenile jail facilities, maintain and operate adult and juvenile jail facilities, and fund and implement other programs designed to reduce the expense of adult and juvenile facilities. Stipulates that this legislation self-repeals on January 1st, 2028, if as of December 1, 2027, the tax has not been approved by voters. (More.) AS PASSED SENATE.
Comment:
Staff 2
  01/21/2025 8:21 AM

1/20 Added to BT tracking

Staff 2
  01/22/2025 3:17 PM

1/22 BT recommend supporting

Staff 2
  01/27/2025 2:12 PM

1/24 PA approved supporting

Last Action:
03/19/2025 
H - DP   - House Government
SB1206 - Banks; special deposits; requirements (Special deposits; banks; requirements; definitions)
Sponsor: Sen. Shawnna Bolick (R)
Summary: Describes the type of customer and deposit that this legislation applies to as it pertains to a special deposit and account agreement, and outlines who this legislation does not affect. Defines how disputes are to be resolved, how and when account arrangements may be modified, when consent is needed from a third party, and when it is not. Defines special deposits, the purpose of the account and lists criteria that determine them to be special deposits. Outlines the role and responsibility of a bank pertaining to account agreements and the existence of beneficiaries. Stipulates that a depositor or a beneficiary does not have a property interest in a special deposit and outlines the legal limitations to property interest in special deposits. Describes the roles, permissions and prohibitions of a creditor process as it pertains to a special deposit. Lists existing legal recourse pertaining to special deposits and paying a depositor or beneficiary. Defines permissible charges and the duty a bank has to a beneficiary. Stipulates, except when otherwise provided in an account agreement, when the account terminates. Requires a court to consider the promotion of uniformity of the law as it relates to this legislation. (More.) AS PASSED SENATE.
Comment:
Staff 2
  01/23/2025 3:05 PM

1/22 Added to BT tracking

Last Action:
03/11/2025 
H - DP   - House Commerce
SB1216 - TPT; utilities classification; reporting
Sponsor: Sen. Hildy Angius (R)
Summary: Requires an individual who produces and furnishes, or furnishes to customers, natural or artificial gas and water, or provides to retail electric customers ancillary services, electric distribution services, electric generation services, electric transmission services, and other services related to providing electricity, to keep the books of their business so as to show separately gross proceeds of sales, to residential and nonresidential customers. Requires the entity mentioned to report those amounts to the Arizona Department of Revenue (ADR) using an official form, pursuant to state law. Directs the ADR To revive the transaction privileges tax return form, pursuant to this legislation, by the seventh month after the effective date. Stipulates that this legislation applies to taxable periods beginning on or after the first day of the month following the sixth month after the general effective date.
Comment:
Staff 2
  01/23/2025 3:03 PM

1/22 Added to BT tracking

Last Action:
02/04/2025 
H - Removed from Hearing Agenda - 02/10/2025, 2:00 PM - Senate FIN, SHR 1
SB1222 - Internal revenue code; conformity
Sponsor: Sen. J.D. Mesnard (R)
Summary: For the purpose of Title 42 (Taxation) for the purposes of computing income tax for taxable years staring January 1, 2024, the “Internal Revenue Code” means the US Internal Revenue Code of 1986, as amended, including 2023 provisions with specific adoption of retroactive effective dates, but including no changes after January 1, 2024 and provisions that are retroactively effective during 2023.
Comment:
Staff 2
  01/23/2025 2:44 PM

1/22 Added to BT tracking

Staff 2
  02/10/2025 7:16 PM

2/10 BT recommends supporting

Staff 2
  02/25/2025 8:53 AM

2/21 PA approved support

Last Action:
02/26/2025 
S - Hearing Scheduled - 02/27/2025 - Third Reading, Senate Floor
SB1224 - Property tax; limited property value
Sponsor: Sen. J.D. Mesnard (R)
Summary: Requires a limited property value to be established at a level of percentage of full cash value that is comparable to other properties of the same or similar use, including property that previously qualified for property valuation protection, pursuant to the constitution of Arizona, if the title to the property is conveyed to a person that does not qualify for property valuation protection, or the current owner of the property no longer qualifies, or did not reapply for property valuation protection, or the property that previously qualified for “statutory valuation” (defined) and no longer qualifies.AS PASSED SENATE.
Comment:
Staff 2
  01/24/2025 9:35 AM

1/24 Added to BT tracking

Last Action:
03/27/2025 
H - DP - House Committee of the Whole
SB1274 - Tax corrections act of 2025
Sponsor: Sen. J.D. Mesnard (R)
Summary: Prohibits any employee, agent, or contractor of the Arizona Department of Revenue (ADR) from preparing any Arizona tax return in exchange for compensation and establishes a violation of that is grounds for immediate dismissal or removal from any duties performed as an agent or contractor of the ADR. Permits a part-time or seasonal employee, pursuant to state law, to have withholding deducted in the manner prescribed by law. Stipulates that gambling winnings be withheld at the highest tax rate prescribed by law. Adds a partnership that amends its return, pursuant to federal tax law as needing to file a return for the reviewed year, pursuant to state law. Stipulates that interest does not accrue and is not payable for any Arizona rebate, pursuant to this legislation. Applies retroactively to the taxable years beginning January 1, 2022 and October 30, 2023, pursuant to the definitions in this legislation. (More.). AS PASSED SENATE.
Comment:
Staff 2
  01/24/2025 9:31 AM

1/24 Added to BT tracking

Last Action:
03/25/2025 
S - Transmit to Senate
SB1318 - Income tax rate; reduction; surplus
Sponsor: Sen. J.D. Mesnard (R)
Summary: For each tax year beginning with 2026, the Department of Revenue is required to reduce the individual income tax rate for the current tax year so that the amount of the rate reduction is equal to that tax year's "Arizona taxpayer return," defined as 50 percent of the "structural surplus" (defined) for the immediately following fiscal year. AS PASSED SENATE.
Comment:
Staff 2
  01/31/2025 6:20 PM

1/30 Added to BT tracking

Last Action:
03/26/2025 
H - DP   - House Ways & Means
SB1331 - Income tax subtraction; capital gains
Sponsor: Sen. J.D. Mesnard (R)
Summary: Strikes references to net long-term capital gain included in federal gross income for the taxable year derived from an investment in an asset during specific date ranges. Stipulates that beginning January 1, 2025, the tax rate is 25% of the net long-term capital gain included in federal adjusted gross income. AS PASSED SENATE.
Comment:
Staff 2
  01/31/2025 6:19 PM

1/31 Added to BT tracking

Last Action:
03/12/2025 
H - DP   - House Ways & Means
SB1380 - Property tax oversight commission; continuation
Sponsor: Sen. J.D. Mesnard (R)
Summary:   The statutory life of the Property Tax Oversight Commission is extended six months to January 1, 2034. Retroactive to July 1, 2025. AS PASSED SENATE.
Comment:
Staff 2
  01/31/2025 6:16 PM

1/31 Added to BT tracking

Staff 2
  02/10/2025 7:17 PM

2/10 BT recommends support

Staff 2
  02/25/2025 8:54 AM

2/21 PA approved support

Last Action:
03/12/2025 
H - DP   - House Ways & Means
SB1464 - Tax laws; interpretation; application; hearing
Sponsor: Sen. J.D. Mesnard (R)
Summary: Requires that a charitable organizations certification include a statement that the organization intends to continue to direct or spend at least 50% of its budget on “services” (defined) to residents of Arizona. Redefines several definitions pertaining to the function and role of charitable organizations. AS PASSED SENATE.
Comment:
Staff 2
  01/31/2025 6:11 PM

1/31 Added to BT tracking

Last Action:
03/25/2025 
H - DP - House Committee of the Whole
SB1471 - Electric vehicles; gas tax equivalent
Sponsor: Sen. David C. Farnsworth (R)
Summary: Allows the Arizona Department of Transportation (ADOT) to establish a tax on fuel sources not covered by the motor vehicle fuel possessed tax, or listed alternative fuel taxes, that is consistent with the tax of the motor vehicle class that the motor vehicle is replacing. Stipulates that for electric vehicles less than 10,001 pounds gross vehicle weight, the sax is to be the average of the tax amount paid by a comparable vehicle charged a fuel possessed tax, or a tax that is comparable to a fuel possessed tax that is based on a motor vehicle’s kilowatt-hour usage to a gasoline equivalent. Sets conversion standard that ADOT must use in determining the tax assessment. Establishes that this legislation is only effective if two-thirds of the members of the Arizona legislature support it, and if the Governor vetoes the bill, if three-fourths of the members of the legislature vote to overturn the veto.  
Comment:
Staff 2
  01/31/2025 6:10 PM

1/31 Added to BT & TI tracking

Last Action:
03/17/2025 
S - DISC/ONLY - Senate Finance
SB1539 - TPT; exemption; clean rooms
Sponsor: Sen. Frank Carroll (R)
Summary: Adds the sale of “clean room equipment” (defined) to the list of categories that must be deducted from the tax base. Exempts the same from personal property taxation.
Comment:
Staff 2
  02/09/2025 4:55 PM

2/6 Added to BT tracking

Staff 2
  02/17/2025 10:44 AM

2/17 BT recommends supporting

Staff 2
  02/25/2025 8:54 AM

2/21 PA approved support

Last Action:
02/24/2025 
S - Senate Majority Caucus - Y
SB1582 - Earned wage access; providers; license
Sponsor: Sen. J.D. Mesnard (R)
Summary: Adds that for an “earned wage access services” (defined) provider the fee is $1,000 for an annual assessments and renewal “fee” (defined). Lists individuals, licensees and transactions that are exempted from the requirements of this legislation. Prohibits a provider, located in Arizona or another state, from providing earned wage access services unless they are licensed by the Arizona Department of Banking and Financial Institutions (ADBFI). Outlines the licensing process, including what information a licensee must provide, registration, information maintenance, and mandatory bonding requirements. Outlines the process of bringing a claim against a bond, including legal liability, and permissions. Defines the internal requirements and processes of the ABDFI when processing applications, including approval and denial processes and rules governing eligibility for a license. Covers license privileges, requirements and posting rules. Requires the ABDFI keep confidential all information contained in an application for a license and any information gathered during an applicant’s character, general fitness and financial responsibility investigation. Defines provider requirements, responsibilities, prohibitions, and duties. Establishes what earned wage access services comprise and do not comprise under this legislation. Describes reporting requirements for providers and the information that must be included in reports. Provides reasons for a denial of a renewal application. Permits the Arizona Attorney General to investigate noncompliance with this legislation and permits the ABDFI to adopt rules as needed. Requires a two-thirds majority of the Arizona legislature to be enacted and the Governor’s signature or three quarters of the legislature if the Governor vetoes the bill.  
Comment:
Staff 2
  02/05/2025 2:37 PM

2/5/25 Added to BT tracking

Staff 2
  02/10/2025 7:19 PM

2/10 BT recommends supporting

Staff 2
  02/25/2025 8:54 AM

2/21 PA approved support

Last Action:
03/07/2025 
S - Hearing Scheduled - 03/10/2025 - Third Reading, Senate Floor
SB1602 - Affordable housing; qualified projects; eligibility
Sponsor: Sen. Venden "Vince" Leach (R)
Summary: Stipulates that for the purposes of this legislation, the valuation of a qualified project pursuant to state law is not a reduction in state or local ad valorem property taxes.
Comment:
Staff 2
  02/05/2025 2:36 PM

2/5/25 Added to BT tracking

Last Action:
03/04/2025 
S - Senate Minority Caucus - Y
SB1700 - County board of equalization; decisions
Sponsor: Sen. David Gowan (R)
Summary: Require that any decision of the County Board may not exceed the County Assessor’s Noticed Valuation and Recommended Classification. AS PASSED SENATE.
Comment:
Staff 2
  02/05/2025 2:32 PM

2/5/25 Added to BT tracking

Last Action:
03/18/2025 
H - House Minority Caucus - Y
SCR1008 - Municipalities; counties; vote; fee increases
Sponsor: Sen. Warren Petersen (R)
Summary: The 2026 general election ballot is to carry the question of whether to amend specific, listed Arizona Revised Statutes regarding voter approval of tax implementations and increases, and subsequent modifications of assessments and municipal fees at the county and municipal levels.
Comment:
Staff 2
  01/23/2025 3:06 PM

1/22 Added to BT tracking

Last Action:
03/19/2025 
H - DP   - House Ways & Means
SCR1009 - Revenue increases; administrative fee authorization
Sponsor: Sen. J.D. Mesnard (R)
Summary: The 2026 general election ballot is to carry the question of whether to amend the Arizona State Constitution to remove fees and assessments that are authorized by statute but are not prescribed by formula, amount or limit, and are set by a state agency from the exclusion list of Article 9, Section 22.
Comment:
Staff 2
  02/10/2025 6:59 PM

2/10 Added to BT tracking

Last Action:
03/19/2025 
H - DP   - House Ways & Means
SCR1014 - Surplus; income tax rate; reduction
Sponsor: Sen. J.D. Mesnard (R)
Summary: The 2026 general election ballot is to carry the question of whether to amend state statute to require the Department of Revenue, for each tax year beginning with 2028, to reduce the individual income tax rate for the current tax year so that the amount of the rate reduction is equal to that tax year's "Arizona taxpayer return," defined as 50 percent of the "structural surplus" (defined) for the immediately following fiscal year. 
Comment:
Staff 2
  01/31/2025 6:24 PM

1/31 Added to BT tracking

Last Action:
03/26/2025 
H - DP   - House Ways & Means
SCR1028 - School bonds; sixty percent vote
Sponsor: Sen. Shawnna Bolick (R)
Summary: The 2026 general election ballot is to carry the question of whether to amend the Arizona State Constitution, Article 7, Section 13, to require questions on bond issues or special assessments be submitted to qualified electors and to require a 60% affirmation by voters for the question to be approved.
Comment:
Staff 2
  02/09/2025 4:56 PM

2/6 Added to BT & EW tracking

Last Action:
02/19/2025 
S - HELD - Senate Education
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