Budget and Tax


HB2003 - Corporate income tax; rates
Sponsor: Rep. David Livingston (R)
Summary: Decreases the corporate income tax rate to 4.0 percent of net income in tax year 2023, 3.5 percent of net income in tax year 2024, 3.0 percent of net income in tax year 2025, and 2.5 percent of net income in tax years beginning with 2026, from 4.9 percent of net income. Retroactive to tax years beginning with 2023. AS PASSED HOUSE
Comment:
Staff 2
  01/09/2023 8:53 AM

1/6/23 Added to BT tracking

Last Action:
03/21/2023 
S - DP   - Senate Appropriations
Ch. 152, Laws 2023 (HB2010 - Banking; licensing; fees; insurer reporting (Banking; licensing; fees))
Sponsor: Rep. David Livingston (R)
Summary: Makes various changes to statutes relating to licensure of financial institutions and professionals. A consumer lender licensee and a premium finance company licensee are required to apply for license renewal as prescribed by the Deputy Director of the Financial Institutions Division of the Department of Insurance and Financial Institutions (DIFI). Consumer lender licensees are required to pay the renewal fee by June 30 of each year and premium finance company licensees are required to pay the renewal fee by December 31 of each year. Late fees are established. If the Deputy Director does not receive the renewal application and fee by the last day of the month following the fee deadline, the license automatically expires. The holder of an expired license may not be issued a renewal license but may be issued a new license. The deadline for license renewal for debt management companies is moved to June 30 of each year. Beginning July 1, 2024 and by July 1 of each year after, each dental insurer doing business in Arizona is required to file with DIFI an annual report on the dental loss ratio for the preceding calendar year. AS SIGNED BY GOVERNOR  
Comment:
Staff 2
  01/09/2023 8:54 AM

1/6/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 03/06/2023, 2:00 PM - Senate FICO, SHR 109
HB2061 - Food; municipal tax; exemption.
Sponsor: Rep. Leo Biasiucci (R)
Summary: Municipalities and other taxing jurisdictions are prohibited from levying a transaction privilege, sales, or use tax or fee on the sale of food items intended for human consumption or home consumption (as defined elsewhere in statute and by rule). Applies to tax periods on or after the first day of the month following the general effective date.
Comment:
Staff 2
  01/16/2023 2:12 AM

1/13/23 Added to BT tracking

Last Action:
03/21/2023 
H - Hearing Scheduled - 03/22/2023 - Third Reading, Floor
Ch. 79, Laws 2023 (HB2064 - Property tax exemption; disability; qualifications)
Sponsor: Rep. Neal Carter (R)
Summary: For the purpose of the property tax exemption for persons with total and permanent disabilities, the term "person with a total and permanent disability" is defined as a person who is unable to engage in any substantial gainful activity by reason of any physical or mental impairment that is expected to last for a continuous period of at least 12 months or result in death within 12 months as certified by a "competent medical authority" (defined). AS SIGNED BY GOVERNOR
Comment:
Staff 2
  01/16/2023 9:41 AM

1/16/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 03/06/2023, 2:00 PM - Senate FICO, SHR 109
Ch. 31, Laws 2023 (HB2066 - Banks; financial institutions; personal information)
Sponsor: Rep. Neal Carter (R)
Summary: Bank and financial institutions are required to destroy all personal information belonging to a former customer or client no later than ten years after the business relationship ends, except as provided by an applicable law that requires a longer retention period. AS SIGNED BY GOVERNOR
Comment:
Staff 2
  01/16/2023 2:14 AM

1/13/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 03/06/2023, 2:00 PM - Senate FICO, SHR 109
HB2067 - Residential leases; municipal tax exemption
Sponsor: Rep. Neal Carter (R)
Summary: Beginning January 1, 2024, municipalities and other taxing jurisdictions are prohibited from levying a transaction privilege, sales, use or other similar tax or fee on the business of renting or leasing real property for residential purposes. Does not apply to health care facilities, long-term care facilities, hotels, motels, or other transient lodging businesses. By January 1, 2024, the owner of real property that is rented or leased for residential purposes and that is located in a municipality or other taxing jurisdiction that levies such a tax is required to reduce the amount of rent due by an amount equal to the difference caused by the elimination of the tax as provided in this legislation. Contains a legislative intent section. Applies to tax periods beginning January 1, 2024. 
Comment:
Last Action:
02/14/2023 
H - House Minority Caucus - Y
Ch. 106, Laws 2023 (HB2213 - Case management; remote access; requirements (TPT; exemption; utilities; residential customers))
Sponsor: Rep. Gail Griffin (R)
Summary: The Department of Child Safety (DCS) is required to provide to the Arizona Supreme Court (ASC) remote access to all automated case management systems used by DCS for the ASC to use in assisting local foster care review boards. DCS is required to provide to foster care review boards direct remote online access to all “DCS information” (defined) identified by the board as necessary to perform the board’s duties. The Office of the Ombudsman-Citizens Aide is required to have direct remote access to all DCS information within the DCS automated case management system unless explicitly prohibited by law. AS SIGNED BY GOVERNOR
Comment:
Staff 2
  01/16/2023 2:18 AM

1/13/23 Added to AEW & BT tracking

Last Action:
05/01/2023 
G - Signed
HB2315 - Primary residence; property tax; exemption
Sponsor: Rep. Rachel Jones (R)
Summary: The primary residence of an Arizona resident that is not subject to a mortgage, deed of trust or other similar encumbrance is exempt from taxation. The property owner is required to file an affidavit with the county assessor to initially establish qualification for this exemption. Conditionally enacted on the state Constitution being amended by the voters at the 2024 general election by passage of an unspecified House Concurrent Resolution (blank in original) relating to property tax exemptions. 
Comment:
Staff 2
  01/16/2023 9:39 AM

1/16/23 Added to BT tracking

Last Action:
01/19/2023 
H - House 2nd Read
HB2383 - Conformity; internal revenue code.
Sponsor: Rep. Neal Carter (R)
Summary: For the purpose of Title 42 (Taxation), the definition of "Internal Revenue Code" is updated to mean the U.S. Internal Revenue Code in effect as of January 1, 2023. For the purpose of Title 43 (Taxation of Income), the definition of "Internal Revenue Code" for tax year 2023 means the U.S. Internal Revenue Code in effect on January 1, 2023. 
Comment:
Staff 2
  01/16/2023 9:09 AM

1/16/23 Added to BT tracking 1/17/23 BT recommends supporting 1/20/23 PA approved support

Last Action:
02/14/2023 
H - House Minority Caucus - Y
HB2395 - Repeal; individual income tax
Sponsor: Rep. Austin Smith (R)
Summary: Repeals the Arizona individual income tax. 
Comment:
Staff 2
  01/16/2023 9:40 AM

1/16/23 Added to BT tracking

Last Action:
01/19/2023 
H - House 2nd Read
HB2472 - Social credit; use; prohibition
Sponsor: Rep. Steve Montenegro (R)
Summary: The state would have been prohibited from requiring a bank or financial institution to use a social credit score when the bank or financial institution evaluates whether to lend money to a customer. AS VETOED BY GOVERNOR. In her veto message, the Governor called the bill overly vague and pointed out that "social credit scores" are not defined and do not exist in the United States. 
Comment:
Staff 2
  01/16/2023 9:16 AM

1/16/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 03/06/2023, 2:00 PM - Senate FICO, SHR 109
Ch. 112, Laws 2023 (HB2484 - Failure to return vehicle (Failure to return vehicle; repeal.))
Sponsor: Rep. Kevin Payne (R)
Summary: Repeals the crime of unlawful failure to return a motor vehicle subject to a security interest, a class 6 (lowest) felony. A person is required to return a motor vehicle that is subject to a security interest if a list of specified conditions applies, including that the person fails to make a payment on the lien for more than 90 days, and the secured creditor notifies the owner in writing that the owner is 90 days late in making a payment and is in default. Some exceptions. If a person does not return a motor vehicle, the secured creditor is authorized to file an affidavit with the Arizona Department of Transportation (ADOT), and ADOT is required to immediately suspend the registration of, and any license plate assigned to, the motor vheicle. AS SIGNED BY GOVERNOR
Comment:
Staff 2
  01/16/2023 9:17 AM

1/16/23 Added to BT tracking 1/17/23 Added to LRR tracking

Last Action:
05/01/2023 
G - Signed
HB2585 - TPT; digital goods and services
Sponsor: Rep. Neal Carter (R)
Summary: Establishes a digital goods classification of transaction privilege taxes (TPT) and levies a TPT at a rate of 5 percent of the tax base for every person engaging or continuing in the business of digital goods. The digital goods classification is comprised of the business of selling, leasing or licensing the use of "prewritten computer software" or providing "specified digital goods" (both defined). The tax base for the digital goods classification is the gross proceeds of sales or gross income derived from the business. Establishes requirements for sourcing prewritten computer software and specified digital goods. Imposes an additional TPT rate increment of 0.6 percent on the digital goods classification through June 30, 2041. The gross income, gross receipts, gross proceeds, purchase price, or sales price from selling, leasing, licensing, purchasing, or using "digital services" (defined elsewhere in statute) is excluded from TPT and excise taxes. Does not apply to services provided by a person subject to tax under the online lodging marketplace classification. Applies to taxable periods beginning on or after the first day of the month following the general effective date. 
Comment:
Staff 2
  02/03/2023 9:28 AM

2/2/23 Added to BT tracking

Last Action:
02/07/2023 
H - House 2nd Read
HB2587 - Governor's declaration; fiscal impact analysis
Sponsor: Rep. Kevin Payne (R)
Summary: In any year in which the Governor has initially declared a state of war emergency or state of emergency for a public health emergency, the State Treasurer is prohibited from withholding any amount from the Arizona Convention Center Development Fund from an eligible city for that year. In conducting the analysis or estimate of the economic impact of any project eligible for monies from the Fund in subsequent years following the emergency declaration, the Auditor General is required to assume that the eligible city satisfied the minimum required attendance in the year of the emergency declaration and the year following that declaration, and that the incremental revenues to the general fund in any year of the initial emergency declaration and the year following that declaration at least equaled the amount of distributions by the state. Retroactive to January 1, 2020. 
Comment:
Staff 2
  02/03/2023 9:28 AM

2/2/23 Added to BT tracking 2/6/23 BT recommends support 2/17/23 PA approved support

Last Action:
07/31/2023 
S - Senate 1st Read
HCR2017 - Property tax; exemption; primary residence
Sponsor: Rep. Rachel Jones (R)
Summary: The 2024 general election ballot is to carry the question of whether to amend the state Constitution to allow the Legislature to exempt from property taxes the primary residence of an Arizona resident that is not subject to a mortgage, deed of trust, or other similar encumbrance. Applies to tax years beginning with 2025. 
Comment:
Staff 2
  01/16/2023 9:37 AM

1/16/23 Added to BT tracking

Last Action:
01/24/2023 
H - House 2nd Read
HCR2018 - Maricopa county; division; new counties
Sponsor: Rep. Alexander Kolodin (R)
Summary: The 2024 general election ballot is to carry the question of whether to amend state statute to divide Maricopa County into four counties by modifying the Maricopa County boundaries and adding three new counties: Hohokam County, Mogollon County, and O'odham County. Maricopa County operations will continue in their existing form through a transition period of up to three years after the effective date of this legislation. The boards of supervisors of Hohokam, Mogollon, and O'odham Counties will be elected at a special election held within 120 days after the effective date of this legislation. Currently elected Maricopa County Supervisors continue in their capacity for the remainder of their term in whichever county their supervisory district is located. The elected boards of supervisors in the three new counties will determine an application process for municipalities to apply to be the county seat, which will be determined at a special election to be held within 120 days from the election of the boards of supervisors. The four counties are authorized to enter into a ten-year shared use agreement for the use of existing shared capital assets. The four counties are required to enter into an intergovernmental agreement for the continued operation of community colleges for at least ten years after the effective date of this legislation. 
Comment:
Staff 2
  01/16/2023 9:22 AM

1/16/23 Added to LRR & BT tracking 1/17/23 LRR & BT recommends opposing 1/20/23 PA approved opposition

Last Action:
01/31/2023 
H - House 2nd Read
HCR2029 - Income tax; individuals; repeal
Sponsor: Rep. Alexander Kolodin (R)
Summary: The 2024 general election ballot is to carry the question of whether to amend state statute to repeal the Arizona individual income tax. Applies to tax years beginning with 2025. 
Comment:
Staff 2
  01/18/2023 6:33 AM

1/18/23 Added to BT

Last Action:
01/24/2023 
H - House 2nd Read
SB1037 - Superior court commissioner; appointment; qualifications
Sponsor: Sen. John Kavanagh (R)
Summary: In any county, instead of only in counties having three or more superior court judges, the presiding judge is authorized to appoint court commissioners to serve at the presiding judge's pleasure. Statute allowing each superior court judge to appoint a court commissioner and establishing the powers of court commissioners is repealed. In counties with fewer than three superior court judges, if sufficient state monies are appropriated, the state and county must each pay one-half of a court commissioner's salary. 
Comment:
Staff 2
  01/16/2023 9:41 AM

1/16/23 Added to BT tracking 1/17/23 Added to LRR tracking

Last Action:
02/16/2023 
S - HELD - Senate Judiciary
SB1063 - Food; municipal tax; exemption...
Sponsor: Sen. Sonny Borrelli (R)
Summary: Municipalities and other taxing jurisdictions would have been prohibited from levying a transaction privilege, sales, or use tax or fee on the sale of food items intended for human consumption or home consumption (as defined elsewhere in statute and by rule). Would have become effective July 1, 2025. AS VETOED BY GOVERNOR. In her veto letter, the Governor expressed concern about the impact this legislation would have on municipalities and the resulting potential cuts to services or increases in property taxes. 
Comment:
Staff 2
  01/18/2023 6:29 AM

1/18/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 01/30/2023, 2:00 PM - Senate FICO, SHR 109
SB1089 - Food; municipal tax; exemption..
Sponsor: Sen. Anthony Kern (R)
Summary: Municipalities and other taxing jurisdictions are prohibited from levying a transaction privilege, sales, or use tax or fee on the sale of food items intended for human consumption or home consumption (as defined elsewhere in statute and by rule). Applies to tax periods on or after the first day of the month following the general effective date.
Comment:
Staff 2
  01/20/2023 3:22 AM

1/20/23 Added to BT tracking

Last Action:
01/23/2023 
S - Senate 2nd Read
SB1108 - Income tax; credit; labor costs
Sponsor: Sen. Wendy Rogers (R)
Summary: For tax years beginning with 2024, establishes an individual and corporate income tax credit for a portion of a taxpayer's increased hourly labor costs that results from paying a local minimum wage that is more than the state minimum wage. The amount of the credit is ten percent of the difference between the amount of hourly labor costs the employer actually paid to employees and the product of the total number of hours worked by all employees during the taxable year multiplied by the state minimum wage. Requirements to qualify for the credit are specified. If the allowable credit exceeds taxes due, the unused amount may be carried forward for up to five consecutive tax years. Each month the State Treasurer is required to withhold from a municipality an amount equal to 1/12 of the total amount of credits claimed for the prior taxable year by taxpayer's located in that municipality from the municipality's distribution of state shared revenues. Some exceptions. AS PASSED SENATE
Comment:
Staff 2
  01/20/2023 3:27 AM

1/20/23 Added to BT tracking 2/6/23 BT recommends support 2/17/23 PA approved support

Last Action:
11/30/2023 
S - Hearing Scheduled - 01/30/2023, 2:00 PM - Senate FICO, SHR 109
SB1138 - Business; discrimination prohibition; social criteria (Banks; discrimination prohibition; social criteria)
Sponsor: Sen. Jake Hoffman (R)
Summary: A financial institution, insurer, or credit reporting agency doing business in Arizona, either directly or through a contractor, is prohibited from discriminating against any person based on a political affiliation or other social credit, environmental, social, governance or similar values-based or impact criteria. AS PASSED SENATE
Comment:
Staff 2
  01/20/2023 3:28 AM

1/20/23 Added to BT tracking 2/6/23 BT recommends opposing 2/17/23 PA approved opposition

Last Action:
06/12/2023 
H - FAILED   - House Third Reading
Ch. 2, Laws 2023 (SB1171 - Conformity; internal revenue code)
Sponsor: Sen. J.D. Mesnard (R)
Summary: For the purpose of Title 42 (Taxation), the definition of "Internal Revenue Code" is updated to mean the U.S. Internal Revenue Code in effect as of January 1, 2023. For the purpose of Title 43 (Taxation of Income), the definition of "Internal Revenue Code" for tax year 2023 means the U.S. Internal Revenue Code in effect on January 1, 2023. AS SIGNED BY GOVERNOR
Comment:
Staff 2
  01/20/2023 3:31 AM

1/20/23 Added to BT & PA (companion to HB 2383) 1/20/23 PA approved support

Last Action:
11/30/2023 
S - Hearing Scheduled - 01/30/2023, 2:00 PM - Senate FICO, SHR 109
SB1184 - Municipal tax exemption; residential leases
Sponsor: Sen. Steve Kaiser (R)
Summary: Beginning January 1, 2024, municipalities and other taxing jurisdictions would have been prohibited from levying a transaction privilege, use, or other similar tax or fee on the business of renting or leasing residential property. Some exceptions. By January 1, 2024, the landlord of real property that is rented or leased for residential purposes and that is located in a municipality or other taxing jurisdiction that levies a transaction privilege tax on the business of renting or leasing residential property would have been required to reduce the amount of rent due by an amount equal to the difference caused by the elimination of the transaction privilege tax on the business of renting or leasing residential property. The Arizona Department of Revenue would have been required to electronically notify each residential rental transaction privilege tax licensee of these provisions. From January 1, 2024 through June 30, 2025, the State Treasurer would have been required to distribute proportionately for each month $14,945,600 from the portion of the revenues derived from transaction privilege taxes that is not designated as the distribution base to the municipalities that levied a transaction privilege tax on renting or leasing real property for residential purposes during FY2021-22, based on the average amount that the municipality collected from that tax during FY2021-22. Also, municipalities would have been required to use monies paid from revenues collected from a remote seller in the retail transaction privilege tax classification and paid to the municipality as state shared revenue for public safety before any other municipal purpose. Would have applied to tax periods beginning January 1, 2024 and after. AS VETOED BY GOVERNOR. In her veto message, the Governor stated that lowering housing costs is a priority, but that this bill lacks any enforceable mechanism to ensure relief will be provided to renters and includes an appropriation outside of a comprehensive budget agreement.     
Comment:
Staff 2
  01/24/2023 6:00 AM

1/24/23 Added to BT tracking

Last Action:
02/23/2023 
G - Vetoed
Ch. 193, Laws 2023 (SB1191 - Disbursements; applicability; definition)
Sponsor: Sen. J.D. Mesnard (R)
Summary: The list of authorized forms for escrow deposits is expanded to include "distributed ledger technology" (defined) transfers within or among a secure network of federally insured depository institutions where disbursements are recorded on a ledger and securely deposited in an escrow agent's depository account. Requirements for distributed ledger technology transfer escrow deposits are specified. AS SIGNED BY GOVERNOR
Comment:
Staff 2
  01/24/2023 6:00 AM

1/24/23 Added to BT tracking 2/6/23 BT recommends support 2/17/23 PA approved supporting

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/13/2023, 2:00 PM - Senate FICO, SHR 109
SB1202 - Banking; fees; licensing
Sponsor: Sen. Steve Kaiser (R)
Summary: Consumer lender licensees and premium finance company licensees are required to apply for renewal as prescribed by the Department of Insurance and Financial Institutions (DIFI) by December 31 of each year. If DIFI does not receive the licensee's renewal application and fee by January 31, the license or permit automatically expires. The holder of an expired license or permit may not be issued a renewal license or permit but may be issued a new license or permit. 
Comment:
Staff 2
  01/24/2023 6:01 AM

1/24/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/06/2023, 2:00 PM - Senate FICO, SHR 109
SB1203 - Income tax; reduction; budget surplus
Sponsor: Sen. Steve Kaiser (R)
Summary: Beginning with FY2023-24 and each fiscal year thereafter, the Joint Legislative Budget Committee is required to notify the Arizona Department of Revenue (ADOR) if there is a budget surplus in a fiscal year and, if so, the amount of the budget surplus. On receipt of the notice ADOR is required to reduce the individual income tax rate for the taxable year after the year in which the notice is provided such that the amount of the overall rate reduction is equal to 50 percent of the budget surplus provided in the notice. On receipt of any subsequent notice, ADOR is required to further reduce the income tax rate from the prior taxable year for the taxable year after the year in which the notice is provided such that the amount of the overall rate reduction is equal to 50 percent of the budget surplus provided in the notice until the tax rate is zero percent of taxable income. 
Comment:
Staff 2
  01/24/2023 6:01 AM

1/24/23 Added to BT tracking

Last Action:
01/30/2023 
S - Senate 2nd Read
Ch. 14, Laws 2023 (SB1230 - Tax exemptions; affidavit)
Sponsor: Sen. J.D. Mesnard (R)
Summary: A qualifying community health center, health organization, or hospital, or any other entity that is recognized as nonprofit under section 501(c) of the U.S. Internal Revenue Code and that is required to obtain a transaction privilege tax (TPT) exemption letter from the Arizona Department of Revenue (ADOR) is required to notify ADOR in writing if the entity no longer qualifies for the exemption letter. The exemption letter is valid until the entity is no longer qualified. Regardless of whether the entity notifies ADOR, if the entity no longer qualifies for the letter, the entity is liable for any tax, penalty, and interest that the seller would have been required to pay in TPT if the seller had not been furnished the exemption letter. Persons who claim exemptions from property taxation are required to notify the county assessor in writing if all or part of the property is conveyed to a new owner, if the property is no longer used for the purpose that qualifies it for the exemption, or if there is any event that otherwise disqualifies the person or property from the exemption. Applies to tax years beginning with 2024. AS SIGNED BY GOVERNOR  
Comment:
Staff 2
  01/25/2023 4:50 AM

1/25/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/06/2023, 2:00 PM - Senate FICO, SHR 109
SB1241 - Payment settlement entities; information returns
Sponsor: Sen. J.D. Mesnard (R)
Summary: For taxable years beginning with 2024, a "payment settlement entity" (defined in federal code) that is required to file an information return pursuant to section 6050w of the federal Internal Revenue Code is required to file a copy of that information return with the Arizona Department of Revenue on or before the date on which the payment settlement entity is required to file the federal information return. 
Comment:
Staff 2
  01/25/2023 4:51 AM

1/25/23 Added to BT tracking

Last Action:
02/01/2023 
S - Senate 2nd Read
Ch. 66, Laws 2023 (SB1242 - Board of tax appeals; continuation)
Sponsor: Sen. J.D. Mesnard (R)
Summary: The statutory life of the State Board of Tax Appeals is extended eight years to July 1, 2031. Retroactive to July 1, 2023. AS SIGNED BY GOVERNOR
Comment:
Staff 2
  01/25/2023 4:51 AM

1/25/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/06/2023, 2:00 PM - Senate FICO, SHR 109
Ch. 67, Laws 2023 (SB1260 - Small businesses; income tax; rate)
Sponsor: Sen. J.D. Mesnard (R)
Summary: The tax rate on Arizona small business taxable income is reduced to 2.5 percent for tax years beginning with 2023, instead of 2025. Previously, the tax rate was 2.8 percent for tax years 2023 and 2024. Retroactive to tax years beginning with 2023. AS SIGNED BY GOVERNOR
Comment:
Staff 2
  01/30/2023 3:38 PM

1/30/23 Added to BT tracking 2/6/23 BT recommends support 2/17/23 PA approved supporting

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/06/2023, 2:00 PM - Senate FICO, SHR 109
SB1263 - Business personal property; tax exemption
Sponsor: Sen. J.D. Mesnard (R)
Summary: Personal property used in a trade or business and personal property used for agricultural purposes that is not centrally assessed property is exempt from taxation, instead of only being exempt for up to a maximum amount of $207,366. Personal property that is devoted to any commercial or industrial use and that is not included in another property tax classification is removed from the list of property classified as class one for property tax purposes. Personal property that is not included in another property tax classification is removed from the list of property classified as class two for property tax purposes. Various specified types of personal property are removed from the lists of property classified as class one, two, four, six, and seven for property tax purposes. Repeals statutes providing valuation guidelines for various types of personal property subject to property taxes. Applies to tax years beginning with 2024. AS PASSED SENATE
Comment:
Staff 2
  01/30/2023 3:39 PM

1/30/23 Added to BT & AEW tracking 2/6/23 BT recommends support 2/17/23 PA approved supporting

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/06/2023, 2:00 PM - Senate FICO, SHR 109
SB1276 - Assessed valuation; class one property
Sponsor: Sen. J.D. Mesnard (R)
Summary: Reduces the assessed valuation of class one property to 16 percent of the full cash value or limited valuation for 2024 and 15 percent of the full cash value or limited valuation beginning January 1, 2025, instead of 16.5 percent for 2024, 16 percent for 2025, 15.5 percent for 2026, and 15 percent beginning January 1, 2027. Establishes a new table of depreciated values for personal property initially classified before tax year 2022 as certain types of class one, two, or six property. Apples to tax years beginning with 2024. 
Comment:
Staff 2
  01/30/2023 3:40 PM

1/30/23 Added to BT tracking 2/6/23 BT recommends support 2/17/23 PA approved supporting

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/06/2023, 2:00 PM - Senate FICO, SHR 109
SB1325 - TPT; administration; remote sellers
Sponsor: Sen. Ken Bennett (R)
Summary: If another state tax agency extends comity to Arizona in the tax administration for remote sellers, the Arizona Department of Revenue (ADOR) is required to allow a remote seller to communicate exclusively through the state tax agency of the state in which the remote seller is located, including allowing the remote seller to report and remit the tax owed to Arizona to the state tax agency of that state and for that state tax agency to remit it to Arizona on behalf of the remote seller. ADOR is required to cooperate with other state tax agencies to develop a "central clearinghouse" (defined). If a central clearinghouse is established, ADOR is required to use the central clearinghouse to accept all tax returns and remittances for remote sellers. Beginning in calendar year 2024, a remote seller may elect to pay a single municipal tax rate instead of the municipal tax rates for retail sales in effect for each municipality or special district. The single municipal tax rate is equal to the average rate of municipal taxes imposed in Arizona during the previous fiscal year. For calendar year 2024 and after, any person that conducts business in an activity classified under transaction privilege tax (TPT) classifications with purchasers in Arizona is required to pay TPT if the person is a remote seller and the taxable sales, instead of the gross proceeds of sales or gross income, derived from the remote seller's business with customers in Arizona that is not facilitated by a marketplace facilitator is more than $100,000. Contains legislative findings.
Comment:
Staff 2
  01/30/2023 3:49 PM

1/30/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/13/2023, 2:00 PM - Senate FICO, SHR 109
SB1326 - Appropriation; business services; salaries; study
Sponsor: Sen. Ken Bennett (R)
Summary: Appropriates $360,000 from the general fund in FY2023-24 to the Secretary of State for salary increases for business services staff members and a business process study. AS PASSED SENATE
Comment:
Staff 2
  01/30/2023 3:49 PM

1/30/23 Added to BT tracking

Last Action:
03/29/2023 
H - DPA   - House Appropriations
SB1426 - Right to redeem; lien; sale
Sponsor: Sen. Justine Wadsack (R)
Summary: The foreclosure of the right to redeem does not extinguish any of the property owner's or another lienholder's interest in the surplus proceeds from the sale of the property. After a property is sold at auction, the county treasurer is required to post a public list of the remaining monies that any party that had a legal interest in the property before the judgment foreclosing the right to redeem or the issuance of the tax deed to the state may claim. After receiving full payment for the property, the county treasurer is required to notify by mail the former property owner and any person with a recorded interest in the property. Information that must be included in the notice is listed, including that any amount remaining after disbursement of surplus monies to any lienholders or other interested parties that filed a claim will be available for the former property owner or the owner's heirs or assigns to claim for up to five years. More. Emergency clause.
Comment:
Staff 2
  01/31/2023 2:20 PM

1/31/23 Added to BT tracking

Last Action:
02/02/2023 
S - Senate 2nd Read
Ch. 11, Laws 2023 (SB1473 - Tax corrections act of 2023)
Sponsor: Sen. J.D. Mesnard (R)
Summary: Corrections to the tax code as recommended by the Arizona Department of Revenue and Legislative Council. Changes are for clarification or to blend conflicting statutes and are not intended to be substantive. 21 pages. An annual exercise. AS SIGNED BY GOVERNOR
Comment:
Staff 2
  01/31/2023 2:25 PM

1/31/23 Added to BT tracking 2/6/23 BT recommends support 2/17/23 PA approved supporting

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/13/2023, 2:00 PM - Senate FICO, SHR 109
SB1559 - Businesses; fees; income tax reduction
Sponsor: Sen. Steve Kaiser (R)
Summary: For tax years beginning with 2024, the list of subtractions from Arizona gross income for the purpose of individual and corporate income taxes is expanded to include the following amounts of income received from the business for an individual who is the owner of a business or for a corporation: 100 percent of the income received for the business' first year of operation, 50 percent of the income received for the business' second year of operation, and 25 percent of the income received for the business' third year of operation. A new business or a person establishing a new business is exempt from all Arizona Corporation Commission business, service, and copying filing fees, from all Secretary of State business and trademark registration and financing statement filing fees, and from state transaction privilege tax license fees. Beginning January 1, 2024, the Arizona Department of Administration (ADOA) is encouraged to award five percent of the total number of state contracts entered into each year to "new businesses" (defined). ADOA is required to evaluate lowering barriers for new businesses to compete for state contracts. AS PASSED SENATE
Comment:
Staff 2
  01/31/2023 2:29 PM

1/31/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/13/2023, 2:00 PM - Senate FICO, SHR 109
SB1562 - Research; development; tax credits
Sponsor: Sen. Steve Kaiser (R)
Summary: Increases the maximum aggregate amount of tax credits for increased research activities to $10 million, from $5 million, in any calendar year. The Arizona Commerce Authority (ACA) may approve a portion of the unused balance of income tax credits for increased research activities for reinvestment for sustainability or water capital projects, a capital expenditure project between the taxpayer and an institution of higher learning or a Career Technical Education District (CTED), or a workforce development project between the taxpayer and an institution of higher learning or a CTED. The amount of the income tax credit reinvestment is $0.75 per dollar of unused credit, not to exceed $10 million per year per applicant or the applicant's current unused balance of unused credits, whichever is less. The maximum aggregate of income tax credit reinvestments the ACA may approve is limited to $50 million in any fiscal year. The reinvestment provisions self-repeal on July 1, 2033. Appropriates $50.075 million from the general fund in FY2023-24 to the ACA to implement and administer the reinvestment of the credits. Retroactive to July 1, 2023. 
Comment:
Staff 2
  01/31/2023 2:31 PM

1/31/23 Added to BT tracking 2/6/23 BT recommends support 2/17/23 PA approved supporting

Last Action:
03/21/2023 
S - FAILED   - Senate Third Reading
SB1577 - Income tax rate; reduction; surplus
Sponsor: Sen. J.D. Mesnard (R)
Summary: For each tax year beginning with 2024, 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. 
Comment:
Staff 2
  01/31/2023 2:33 PM

1/31/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/13/2023, 2:00 PM - Senate FICO, SHR 109
Ch. 202, Laws 2023 (SB1718 - Private activity bonding)
Sponsor: Sen. Steve Kaiser (R)
Summary: Changes the allocation of the state ceiling by allocating 25 percent, instead of 30 percent, to projects that are designated at the sole discretion of the Director of the Arizona Finance Authority; 30 percent, instead of 35 percent, to qualified mortgage revenue bonds and qualified mortgage credit certificate programs; 40 percent, instead of 15 percent, to qualified residential rental projects; and by eliminating the 5 percent allocation to qualified student loan projects and the ten percent allocation to all projects financable through the issuance of bonds and that require an allocation of state ceiling. The five percent allocation to manufacturing projects remains unchanged. AS SIGNED BY GOVERNOR
Comment:
Staff 2
  01/31/2023 2:40 PM

1/31/23 Added to BT tracking 3/31/23 PA approved supporting

Last Action:
06/20/2023 
G - Signed
SCR1033 - State debt; limit; restrictions; prohibitions
Sponsor: Sen. J.D. Mesnard (R)
Summary: The 2024 general election ballot is to carry the question of whether to amend the state Constitution to define "debt" as the following obligations of the state that are paid with state general fund monies: general obligation bonds, long-term notes and obligations, certificates of participation and other obligations of a lease-purchase agreement, revenue bonds, and obligations in one fiscal year that are deferred in whole or in part to another fiscal year. 
Comment:
Staff 2
  01/31/2023 2:16 PM

1/31/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/13/2023, 2:00 PM - Senate FICO, SHR 109
SCR1034 - General appropriation bill; continuing appropriation
Sponsor: Sen. J.D. Mesnard (R)
Summary: The 2024 general election ballot is to carry the question of whether to amend the state Constitution to provide that if a new fiscal year begins and no general appropriation bill has been signed into law for that fiscal year, the general appropriation bill in effect for the immediately preceding fiscal year continues in effect as if enacted into law for the new fiscal year until a general appropriation bill has been signed into law for that fiscal year. Allows the Joint Legislative Budget Committee or its successor agency, by a majority vote of all members appointed to the committee, adjust the amounts that were in effect for the immediately preceding fiscal year to remove onetime expenditures and account for inflation and enrollment growth for programs administered by the Arizona Department of Education, the Arizona Health Care Cost Containment System (AHCCCS) and the Department of Economic Security, or their successor agencies, in the new fiscal year. Does not apply if after these adjustments, the general appropriation bill appropriates an amount that exceeds the projected general fund revenues for the new fiscal year. AS PASSED SENATE
Comment:
Staff 2
  01/31/2023 2:16 PM

1/31/23 Added to BT tracking

Last Action:
03/22/2023 
H - DP   - House Appropriations
SCR1035 - Surplus; income tax rate; reduction
Sponsor: Sen. J.D. Mesnard (R)
Summary: The 2024 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 2026, 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
  01/31/2023 2:17 PM

1/31/23 Added to BT tracking

Last Action:
11/30/2023 
S - Hearing Scheduled - 02/13/2023, 2:00 PM - Senate FICO, SHR 109
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