Budget and Tax
55th Legislature - 1st Regular Session, 2021 Sunday, Jan 23 2022 5:49 AM
Bill Summaries
H2028: TREASURER; INVESTMENT OF TRUST FUNDS

Deletes authorization for securities owned by the permanent endowment funds to be loaned to the financial or dealer community under certain circumstances. Deletes authorization for permanent endowment securities to be sold at a price below par or cost if the proceeds of the sale are reinvested in securities whose incremental yield will recover the dollar loss. AS SIGNED BY GOVERNOR

First sponsor: Rep. Kavanagh ( - Dist )


 

General Comments (all lists):

BT 1/19/21: Support

PA 1-29-21: Approved SUPPORT

Mirror 1216

H2028: TREASURER; INVESTMENT OF TRUST FUNDS 2/12 signed by governor. Chap. 8, Laws 2021. message
H2113: CHARITABLE CONTRIBUTION; DEDUCTION; INFLATION ADJUSTMENT

For tax years beginning with 2022, the Department of Revenue is required to adjust the percentage of a taxpayer's charitable deductions that are allowed in addition to the standard deduction for personal income taxes according to the average annual change in the metropolitan Phoenix Consumer Price Index published by the U.S. Department of Labor, except that the adjusted percentage cannot exceed 100 percent. The revised percentage must be raised to the nearest whole percent and cannot be revised below the amounts prescribed in the prior taxable year.

First sponsor: Rep. Toma ( - Dist )


 

General Comments (all lists):

Supported at PA last year

BT 1/19/21: Support

PA 1-29-21: Approved SUPPORT

H2113: CHARITABLE CONTRIBUTION; DEDUCTION; INFLATION ADJUSTMENT 3/3 from Senate fin do pass.
H2114: INCOME TAX; RETURNS; FILING EXTENSION

The due date for an income tax return for a taxpayer filing a corporate or exempt organization return that has been granted an extension or extensions is seven months after the initial due date provided for filing returns. Does not include small business corporation returns. Retroactive to tax years beginning with 2021.

First sponsor: Rep. Bolick ( - Dist )
Others: Rep. Toma (R - Dist 22)


 

General Comments (all lists):

BT 1/19/21: Support

PA 1-29-21: Approved SUPPORT

Mirror 1350

H2114: INCOME TAX; RETURNS; FILING EXTENSION 3/18 further referred to Senate appro.
H2211: TPT; PRIME CONTRACTING; EXEMPTIONS; CERTIFICATES

Various changes to statutes relating to transaction privilege taxes (TPT) for prime contracting. The definitions of "modification" and "alteration" for the purpose of computing the tax base for the prime contracting classification of TPT are modified. A certificate that a contractor provides to a person stating that the contractor is liable for any amount of transaction privilege taxes due is valid for a period of up to one year. After the certificate expires, the contractor is allowed to execute and provide to the person a new certificate. The Department of Revenue (DOR) is required to prescribe a form for a certificate to be used by a prime contractor that is subject to TPT for purchasing tangible personal property, the purchase price of which was excluded from the tax base under the retail classification of TPT. The prime contractor is required to obtain the certificate from DOR, and the certificate is valid for up to one year. After the certificate expires, the contractor is allowed to obtain a new certificate. Applies to contracts entered into beginning January 1, 2022.

First sponsor: Rep. Cobb ( - Dist )
Others: Rep. Bolick (R - Dist 20), Rep. Toma (R - Dist 22)


 

General Comments (all lists):

BT 1/19/21: Support

PA 1-29-21: Approved SUPPORT

H2211: TPT; PRIME CONTRACTING; EXEMPTIONS; CERTIFICATES 2/17 House ways-means held.
H2316: CENTRALLY ASSESSED PROPERTY; VALUATION; PIPELINES

The "base value" (defined), which is part of the calculation for determining property taxes on pipeline property, is required to be adjusted if one of a list of specified circumstances applies, including a final ruling by a court of competent jurisdiction in Arizona that the full cash value of a pipeline in Arizona is more than the market value using standard appraisal methods, and specified agreements between a pipeline company and the Department of Revenue to adjust the base value as a result of a pending tax appeal or to correct an error in the calculation of full cash value of the system plant in service. Retroactive to tax years beginning with 2016. AS SIGNED BY GOVERNOR

First sponsor: Rep. Toma ( - Dist )


 

General Comments (all lists):

BT 1/19/21: monitor

H2316: CENTRALLY ASSESSED PROPERTY; VALUATION; PIPELINES 2/18 signed by governmor. Chap. 26, Laws 2021. message
H2317: COMMUNITY FACILITIES DISTRICTS

Various changes to statutes relating to community facilities districts. The annual ad valorem tax levied by a district is prohibited from exceeding the amount necessary to meet annual payments of principal and interest on bonds issued by the district, projected payments of principal and interest on new debt planned for that year, a reasonable delinquency factor, including an amount necessary to correct prior year errors or shortages in the levy, if applicable, and any expenses and fees required. The levy is required to be the net of all cash in excess of ten percent of the annual payments of principal and interest in the current fiscal year from the previous year remaining in a segregated fund or funds for the levy. If a district sells general obligation bonds above par, the amount of "net premium" (defined) associated with a general obligation bond issue may be used only to pay costs incurred in issuing the bonds or as a deposit in a debt service fund and used only to pay interest on the issue of general obligation bonds. If used for any other purpose, and if the district has general obligation bond voter authorization and available capacity under its debt limitations, both the available aggregate indebtedness capacity of the district and the principal amount authorized at the general obligation bond election for the district must be reduced by the amount of net premium used for that purpose. For districts that are formed after August 9, 2017 and before the effective date of this legislation and for which the district board consists of the governing body of the municipality or county with two additional district board members who were initially designated by an owner who owned the largest amount of privately owned acreage in the district at formation, at any time after receipt of a petition signed by the owners of a majority of the privately owned real property within the boundaries of the district as measured by square footage or acreage, the district board is authorized to adopt a resolution to permanently remove the two additional appointed district board members and their positions on the board. If a community facilities district will be governed by a governing body with two additional board members who are initially designated by the owner who owns the largest amount of privately-owned acreage in the district, the resolution ordering formation of the district is permitted to state, or the district board is permitted to adopt a resolution that provides, that those two additional members are permanently advisory nonvoting members. Emergency clause. AS SIGNED BY GOVERNOR

First sponsor: Rep. Toma ( - Dist )


 

General Comments (all lists):

BT 1/19/21: monitor

H2317: COMMUNITY FACILITIES DISTRICTS 3/18 signed by governor. Chap. 51, Laws 2021. message
H2321: DOR; ADMINISTRATIVE RULINGS; PROCEDURES

The amount of the income tax credit for “qualified investments” in a “qualified facility” (both defined) is increased to $300,000 for each net new full-time employment position that has job duties associated with the qualified facility, if the total qualifying investment is $2 billion or more. The maximum aggregate amount of income tax credits for qualified investments in a qualified facility that the Arizona Commerce Authority is allowed to preapprove is increased to $125 million, from $70 million. The definition of “qualified manufacturing” is expanded to include manufacturing tangible products in Arizona if at least 65 percent of the product is directly sold to one or more qualified facilities, regardless of whether the qualified facilities are preapproved by the Authority. The distribution of revenues to counties and municipalities to fund public infrastructure improvements for the benefit of a manufacturing facility is extended ten years through September 30, 2033. AS SIGNED BY GOVERNOR

First sponsor: Rep. Toma ( - Dist )


 

General Comments (all lists):

BT 1/19/21: monitor

3-8 BT support striker (Qualified facilities, ACA)

H2321: DOR; ADMINISTRATIVE RULINGS; PROCEDURES 3/23 signed by governor; Chap. 80, Laws 2021. message
H2427: SCHOOLS; OPEN ENROLLMENT; ATTENDANCE BOUNDARIES (UNUSED TAX CREDIT; TERMINATION; TIME)

The Department of Revenue is required to terminate the recognition and servicing of an individual or corporate income tax credit that was not claimed by or allowed to any individual or corporate taxpayer after three consecutive years of no use, decreased from four consecutive years. For this purpose, unused credits carried forward from prior years are not considered claimed or allowed in the year the credit carried forward is used. If the credit included for repeal in the tax corrections legislation has unused credits carried forward from prior years, the tax corrections legislation must include a savings clause to allow for the continued use of the carried forward amounts for the remainder of the carry forward period.

First sponsor: Rep. Bolick ( - Dist )
Others: Rep. Cobb (R - Dist 5), Rep. Grantham (R - Dist 12), Rep. Toma (R - Dist 22)


 

General Comments (all lists):

Supportvia mirror 1113

PA 1-29-21: Approved SUPPORT

Mirrror 1113

H2427: SCHOOLS; OPEN ENROLLMENT; ATTENDANCE BOUNDARIES 4/22 Senate COW approved with amend #4940 and flr amend #5071. NOTE SHORT TITLE CHANGE.
H2429: TAX CORRECTIONS ACT OF 2021

Corrections to the tax code as recommended by the Department of Revenue and Legislative Council. Changes are for clarification or to blend conflicting statutes and are not intended to be substantive. 49 pages. An annual exercise. AS SIGNED BY GOVERNOR

First sponsor: Rep. Bolick ( - Dist )
Others: Rep. Toma (R - Dist 22)


 

General Comments (all lists):

2-8-21 BT monitor

H2429: TAX CORRECTIONS ACT OF 2021 4/9 signed by governor. Chap. 196, Laws 2021. message
H2562: TAX CREDIT; AFFORDABLE HOUSING

Establishes a credit against individual and corporate income taxes and insurance premium taxes for projects that qualify for the federal low-income housing tax credit and that are placed in service from and after June 30, 2022. The credit is equal to the amount of the federal low-income housing credit for the qualified project. To claim the credit, a taxpayer is required to apply to the Arizona Department of Housing and receive an eligibility statement. If the amount of the credit exceeds taxes due, the taxpayer may carry the unused amount forward for up to five consecutive taxable years. The Department of Revenue is required to allocate a total of $8 million of affordable housing tax credits in any calendar year. Establishes a 9-member Affordable Housing Tax Credit Review Committee to review the tax credits on the fifth year after the effective date of the credit and every five years thereafter and submit a report to the Governor and the Legislature. Self-repeals January 1, 2029.

First sponsor: Rep. Cobb ( - Dist )


 

General Comments (all lists):

2-8 BT recommends Support

2-12 PA Support

H2562: TAX CREDIT; AFFORDABLE HOUSING 2/18 House COW approved with flr amend #4335.
H2597: NONCREDIT COURSES; WORKFORCE TRAINING; ENROLLMENT

"Noncredit courses that are offered for the purposes of workforce training" (defined) at a community college are eligible for the calculation of the number of full-time equivalent students for the purpose of state aid.

First sponsor: Rep. Roberts ( - Dist )


 

General Comments (all lists):

1/25/21 EW- monitor

H2597: NONCREDIT COURSES; WORKFORCE TRAINING; ENROLLMENT 1/28 referred to House educ.
H2649: COMPUTER DATA CENTERS; TAX INCENTIVES

The deadline for the Arizona Commerce Authority to certify new computer data centers for tax relief for computer data centers is extended ten years, to December 31, 2033. The minimum investment of $100 million in new renewable energy facilities in Arizona that a taxpayer must make in order to qualify for the tax credit for renewable energy investment may include investments made by a third-party entity on behalf of or for the direct benefit of the taxpayer. For taxpayers using investments made by third-party entities on behalf of or for the direct benefit of the taxpayer, the investment threshold is $1.5 billion, instead of $1.25 billion. A third-party entity cannot include the owner or operator of the international operations center or affiliated entities. The exemption from the retail classification of transaction privilege taxes (TPT) for computer data equipment sold to the owner, operator or qualified colocation tenant of a computer data center for use in the qualified computer data center is deleted and replaced with a deduction from the tax base of the retail classification of TPT for such computer data equipment. Session law requires any claim for refund of TPT based on the retroactive application of this change to be submitted to the Department of Revenue by December 31, 2021. The aggregate refund amount is capped at $10,000. Interest is not allowed and may not be compounded on any refundable amount of these claims if paid before July 1, 2022. Contains a legislative intent section. Retroactive to tax periods beginning September 13, 2013. Nonseverability clause. AS SIGNED BY GOVERNOR

First sponsor: Rep. Toma ( - Dist )
Others: Rep. Cook (R - Dist 8), Rep. Dunn (R - Dist 13), Rep. Osborne (R - Dist 13)


 

General Comments (all lists):

2-8 BT recommends Support

2-12 PA Support

H2649: COMPUTER DATA CENTERS; TAX INCENTIVES 4/20 signed by governor. Chap. 266, Laws 2021. message
H2838: INCOME TAX; PARTNERSHIPS; S CORPORATIONS

For tax years beginning with 2022, the partners or shareholders of a business that is a partnership or S corporation for federal income tax purposes is allowed to elect to be taxed an the entity level at a rate of 4.5 percent of the entire portion of its taxable income attributable to its Arizona resident partners or shareholders and the portion of its taxable income derived from sources within Arizona that is attributable to its nonresident partners or shareholders for that tax year. Some exceptions. The Department of Revenue is required to adopt rules and prescribe forms and procedures as necessary to administer this legislation. For tax years beginning with 2022, establishes an individual income tax credit for a taxpayer who is a partner in a partnership or a shareholder of an S corporation that elects to pay the entity level tax. The amount of the credit is the portion of the tax paid that is attributable to that taxpayer's share of income taxable in Arizona. If the allowable credit exceeds taxes due, the unused amount may be carried forward for up to five consecutive tax years. Effective January 1, 2022. AS SIGNED BY GOVERNOR

First sponsor: Rep. Chaplik ( - Dist )
Others: Rep. Barton (R - Dist 6), Rep. Biasiucci (R - Dist 5), Rep. Blackman (R - Dist 6), Rep. Bolick (R - Dist 20), Rep. Bowers (R - Dist 25), Rep. Burges (R - Dist 1), Rep. Carroll (R - Dist 22), Rep. Cobb (R - Dist 5), Rep. Cook (R - Dist 8), Rep. Dunn (R - Dist 13), Rep. Fillmore (R - Dist 16), Rep. Finchem (R - Dist 11), Rep. Grantham (R - Dist 12), Rep. Griffin (R - Dist 14), Rep. Hoffman (R - Dist 12), Rep. John (R - Dist 4), Rep. Kaiser (R - Dist 15), Rep. Nguyen (R - Dist 1), Rep. Nutt (R - Dist 14), Rep. Osborne (R - Dist 13), Rep. Parker (R - Dist 16), Rep. Payne (R - Dist 21), Rep. Pingerelli (R - Dist 21), Rep. Pratt (R - Dist 8), Rep. Roberts (R - Dist 11), Rep. Toma (R - Dist 22), Rep. Udall (R - Dist 25), Rep. Weninger (R - Dist 17), Rep. Wilmeth (R - Dist 15)


 

General Comments (all lists):

3-8: BT monitor

H2838: INCOME TAX; PARTNERSHIPS; S CORPORATIONS 7/9 signed by governor. Chap. 425, Laws 2021. message
H2879: DOR; ADMINISTRATIVE RULINGS; PROCEDURES (CONFORMITY; INTERNAL REVENUE CODE; EXCEPTION)

The Department of Revenue (DOR) is authorized to issue draft rulings, procedures and other administrative announcements that apply to tax laws and regulations either generally or for a specific set of facts. DOR is required to establish and maintain a publicly accessible record of all draft and final rulings, procedures and administrative announcements on the DOR website and is required to prominently announce additions, modifications and other changes to this record on the website's home page. Establishes requirements for draft rulings, procedures and other administrative announcements to become final, including a required period for public comment. Does not apply to private taxpayer rulings, tax forms and instructions, routine notices that remind taxpayers of normal filing obligations and other routine DOR communications that do not substantively apply to and interpret tax laws and regulations. The court is required to decide all questions of law without deference to any determination that is made by DOR. AS SIGNED BY GOVERNOR

First sponsor: Rep. Toma ( - Dist )


 

General Comments (all lists):

3-8: BT Support

H2879: DOR; ADMINISTRATIVE RULINGS; PROCEDURES 5/7 signed by governor. Chap. 342, Laws 2021. message
S1004: STATE FINANCE REVIEW; TASK FORCE

Establishes a 22-member Citizens Finance Review Task Force to analyze the source of general fund and nongeneral fund revenues and expenditures as compared to other states, and make recommendations regarding the responsible retirement of existing state debt. The Task Force is required to submit a report to the Governor and the Legislature by September 30, 2022, and to present the report to a joint meeting of the legislative appropriations committees by January 31, 2023. Self-repeals October 1, 2023. AS PASSED SENATE

First sponsor: Sen. Bowie ( - Dist )


 

General Comments (all lists):

BT 1/19/21: monitor

S1004: STATE FINANCE REVIEW; TASK FORCE 2/23 referred to House ways-means, appro.
S1076: LOW-INCOME MULTIFAMILY HOUSING; VALUATION

The owner of "low-income multifamily residential rental property" (defined) is authorized to elect a statutory income method for valuing the property. The calculation for this valuation method is established. Requirements for a property owner to elect this valuation method are specified, including documentation requirements. Low-income multifamily residential rental properties that are valued using this method are classified as class four property for property tax purposes. AS SIGNED BY GOVERNOR

First sponsor: Sen. Livingston ( - Dist )


 

General Comments (all lists):

BT 1/19/21: monitor

S1076: LOW-INCOME MULTIFAMILY HOUSING; VALUATION 5/10 signed by governor. Chap. 352, Laws 2021. message
S1077: FOSTER YOUTH EMPLOYMENT; TAX CREDIT

Establishes an individual and corporate income tax credit for taxpayers that employ at least one individual who is a "qualified foster youth" (defined as an individual who is currently in foster care or who within the prior seven years was at least 14 years of age and was in foster care, who was not previously employed by the taxpayer and who works at least 20 hours per week for the taxpayer). The amount of the credit is up to $1,000 of the gross wages paid to each qualified foster youth by the taxpayer during the taxable year, not to exceed $5,000 per taxpayer. The aggregate amount of tax credits in a calendar year is capped at $1 million. If the allowable credit exceeds taxes due, the unclaimed amount of the credit may be carried forward for up to five consecutive tax years. Other requirements to qualify for the tax credit are established. Applies to tax years beginning with 2022.

First sponsor: Sen. Livingston ( - Dist )


 

General Comments (all lists):

BT 1/19/21: monitor

S1077: FOSTER YOUTH EMPLOYMENT; TAX CREDIT 2/24 retained on Senate COW calendar.
S1108: TAX OMNIBUS

Various changes to statutes relating to taxes. The list of additions to Arizona gross income for the purpose of computing Arizona adjusted gross income for individual and corporate income tax purposes is modified to remove the amount of any depreciation allowed by specified federal code. The list of subtractions from Arizona gross income for the purpose of computing Arizona adjusted gross income for income tax purposes is modified to include 50 percent of the net long-term capital gain included in federal adjusted gross income for the tax year that is derived from an investment in an asset acquired after December 31, 2020. Increases the dependent tax credit to $120 for each dependent who is under 17 years of age, from $100, and to $30 for each dependent who is at least 17 years of age, from $25. Lowers the state equalization assistance property tax rate to $0.4263 in tax year 2021, $0.3430 in tax year 2022, and $0.2745 in tax year 2023, from $0.4426 in tax year 2020. Lowers the tax rate for class one property taxes to 17.5 percent for tax year 2022 and 17 percent for tax years beginning with 2023, from 18 percent in 2021. The maximum additional tax rate that a county fire district board may levy is increased to $3.375 per $100 of assessed valuation for tax year 2022 and $3.50 per $100 of assessed valuation for tax year 2023 and each tax year after, from $3.25 per $100 of assessed valuation. Retroactive to July 1, 2021, establishes a tax on vehicles propelled only by electricity, natural gas or propane of $110 per year, and a tax on hybrid vehicles of $44 per year. Income tax revisions are retroactive to tax years beginning January 1, 2021. AS PASSED SENATE

First sponsor: Sen. Mesnard ( - Dist )


 

General Comments (all lists):

Supported last year

BT 1/19/21: monitor

S1108: TAX OMNIBUS 3/9 referred to House ways-means.
S1109: INDIVIDUAL INCOME TAX; RATE ADJUSTMENT

For each fiscal year beginning with FY2021-22, the Joint Legislative Budget Committee (JLBC) is required to follow a specified formula to compute an individual income tax rate reduction. For each tax year beginning January 1, 2022 and after, the Department of Revenue is required to reduce for the current taxable year each individual income tax rate by an equal percentage such that the total amount of the rate reduction is equal to the amount calculated by the JLBC. If the amount calculated by the JLBC is equal to or less than zero, the individual income tax rates shall be the same as the rates for the immediately preceding taxable year. Applies to taxable years beginning with 2022.

First sponsor: Sen. Mesnard ( - Dist )


 

General Comments (all lists):

BT 1/19/21: monitor

S1109: INDIVIDUAL INCOME TAX; RATE ADJUSTMENT 2/24 Senate COW approved with flr amend #4524.
S1111: CENTRALLY ASSESSED PROPERTY; VALUATION; PIPELINES

The "base value" (defined), which is part of the calculation for determining property taxes on pipeline property, is required to be adjusted if one of a list of specified circumstances applies, including a final ruling by a court of competent jurisdiction in Arizona that the full cash value of a pipeline in Arizona is more than the market value using standard appraisal methods, and specified agreements between a pipeline company and the Department of Revenue to adjust the base value as a result of a pending tax appeal or to correct an error in the calculation of full cash value of the system plant in service. Retroactive to tax years beginning with 2016.

First sponsor: Sen. Mesnard ( - Dist )


 

General Comments (all lists):

Last year: discussed in committee, no PA position

BT 1/19/21: monitor

S1111: CENTRALLY ASSESSED PROPERTY; VALUATION; PIPELINES 2/2 from Senate rules okay.
S1113: UNUSED TAX CREDIT; TERMINATION; TIME

The Department of Revenue is required to terminate the recognition and servicing of an individual or corporate income tax credit that was not claimed by or allowed to any individual or corporate taxpayer after three consecutive years of no use, decreased from four consecutive years. For this purpose, unused credits carried forward from prior years are not considered claimed or allowed in the year the credit carried forward is used. If the credit included for repeal in the tax corrections legislation has unused credits carried forward from prior years, the tax corrections legislation must include a savings clause to allow for the continued use of the carried forward amounts for the remainder of the carry forward period. AS SIGNED BY GOVERNOR

First sponsor: Sen. Mesnard ( - Dist )


 

General Comments (all lists):

BT 1/19/21: support

PA 1-29-21: Approved SUPPORT

Mirror 2427

S1113: UNUSED TAX CREDIT; TERMINATION; TIME 4/5 signed by governor. Chap. 174, Laws 2021. message
S1124: CONTRIBUTIONS IN AID OF CONSTRUCTION

Establishes the affordable housing corporate and individual income tax credit for “qualified projects” (defined) in Arizona that qualify for the federal low-income housing tax credit that are placed in service from and after June 30, 2022, in an amount equal to at least 50 percent of the amount of the federal credit. The Department of Revenue is required to allocate a total of $4 million of tax credits in a calendar year. The credit self-repeals January 1, 2026. Establishes an income tax credit and an insurance premium tax credit of at least 50 percent of the amount of the federal low-income housing credit for a qualified project for which the Arizona Department of Housing has issued an eligibility statement. Establishes requirements to claim the credit. If the amount of the credit exceeds taxes due, the unused amount may be carried forward for up to five consecutive tax years. The credit self-repeals January 1, 2026. The deadline for the Arizona Commerce Authority to authorize tax credits for capital investment in a qualified small business is extended ten years to June 30, 2031. From July 1, 2021 through June 30, 2031, the Authority is authorized to certify additional tax credits not exceeding $2.5 million each fiscal year, plus any unused credit capacity that carries over from the preceding fiscal year(s). The income tax credit for investment in qualified small business is extended ten years through tax year 2034. Also, for a single community college with a full-time student equivalent enrollment of at least 500 students for FY2019-20, in lieu of the distribution of state shared revenues for tribal postsecondary educational institutions, the State Treasurer is required to transmit $3.5 million of transaction privilege tax revenues from all sources located on the reservation in FY2020-21. Retroactive to tax years beginning with 2021, the list of subtractions from Arizona gross income for the purpose of computing Arizona taxable income for a corporation is expanded to include the amount of monies or property received as a "contribution in aid of construction" (defined) by a public service corporation operating a water or sewage disposal facility. AS SIGNED BY GOVERNOR

First sponsor: Sen. Gowan ( - Dist )


 

General Comments (all lists):

BT 1/19/21: monitor

Support striker: angel investment and affordable housing tax credit

S1124: CONTRIBUTIONS IN AID OF CONSTRUCTION 7/9 signed by governor. Chap. 430, Laws 2021. message
S1216: TREASURER; INVESTMENT OF TRUST FUNDS

Deletes authorization for securities owned by the permanent endowment funds to be loaned to the financial or dealer community under certain circumstances. Deletes authorization for permanent endowment securities to be sold at a price below par or cost if the proceeds of the sale are reinvested in securities whose incremental yield will recover the dollar loss.

First sponsor: Sen. Borrelli ( - Dist )


 

General Comments (all lists):

Support based off mirror 2028

S1216: TREASURER; INVESTMENT OF TRUST FUNDS 2/2 from Senate rules okay.
S1252: CORPORATE INCOME TAX; SUBTRACTION (CORPORATE INCOME TAX; PHASE-OUT)

For tax years beginning with 2022, the first $100,000 of Arizona gross income for the taxable year is added to the list of subtractions from Arizona gross income for the purpose of corporate income taxes. AS PASSED SENATE

First sponsor: Sen. Petersen ( - Dist )
Others: Sen. Livingston (R - Dist 22)


 

General Comments (all lists):

2-8-21 BT monitor

S1252: CORPORATE INCOME TAX; SUBTRACTION 3/9 referred to House ways-means.
S1280: TAX CREDIT REVIEW; EVALUATION STANDARD

The list of factors the Joint Legislative Income Tax Credit Review Committee may include in the standard for evaluating and measuring the success or failure of a tax credit is expanded to include whether adequate protections are in place to ensure that the fiscal impact of the credit in future years will not substantially increase beyond projections available when the credit is evaluated.

First sponsor: Sen. Gray ( - Dist )


 

General Comments (all lists):

2-8-21 BT monitor

3-23 - school transpoation striker - support based on approved SB 1683 position

S1280: TAX CREDIT REVIEW; EVALUATION STANDARD 3/25 from House ways-means with amend #4932.
S1327: TAX CREDIT; AFFORDABLE HOUSING

Establishes a credit against individual and corporate income taxes and insurance premium taxes for projects that qualify for the federal low-income housing tax credit and that are placed in service from and after June 30, 2022. The credit is equal to the amount of the federal low-income housing credit for the qualified project. To claim the credit, a taxpayer is required to apply to the Arizona Department of Housing and receive an eligibility statement. If the amount of the credit exceeds taxes due, the taxpayer may carry the unused amount forward for up to five consecutive taxable years. The Department of Revenue is required to allocate a total of $8 million of affordable housing tax credits in any calendar year. Establishes a 9-member Affordable Housing Tax Credit Review Committee to review the tax credits on the fifth year after the effective date of the credit and every five years thereafter and submit a report to the Governor and the Legislature. Self-repeals January 1, 2028. AS PASSED SENATE

First sponsor: Sen. Gowan ( - Dist )
Others: Sen. Alston (D - Dist 24), Sen. Borrelli (R - Dist 5), Sen. Bowie (D - Dist 18), Sen. Fann (R - Dist 1), Sen. Gray (R - Dist 21), Sen. Livingston (R - Dist 22), Sen. Rios (D - Dist 27), Sen. Shope (R - Dist 8)


 

General Comments (all lists):

2-8 BT recommends Support

2-12 PA Support

S1327: TAX CREDIT; AFFORDABLE HOUSING 3/1 referred to House ways-means.
S1350: INCOME TAX; RETURNS; FILING EXTENSION

The due date for an income tax return for a taxpayer filing a corporate or exempt organization return that has been granted an extension or extensions is seven months after the initial due date provided for filing returns. Does not include small business corporation returns. Retroactive to tax years beginning with 2021. AS SIGNED BY GOVERNOR

First sponsor: Sen. Leach ( - Dist )


 

General Comments (all lists):

Support based on mirror 2114

S1350: INCOME TAX; RETURNS; FILING EXTENSION 4/5 signed by governor. Chap. 178, Laws 2021. message
S1392: NET OPERATING LOSS; CARRYBACK; CARRYOVER

For taxable years beginning with 2018, the list of additions to Arizona gross income for the purpose of individual income taxes is expanded to include the amount of net operating losses taken under a specified section of the federal Internal Revenue Code to the extent the amount is not included in computing federal adjusted gross income. For taxable years beginning with 2018, the list of subtractions from Arizona gross income for the purpose of individual income taxes is expanded to include the amount of the net operating loss deduction that would have been disallowed under a specified section of the federal Internal Revenue Code. To the extent not already excluded from Arizona gross income, for any taxable year the taxpayer has a net operating loss, the net operating loss is a net operating loss carryover for each of the 20 succeeding taxable years for net operating losses arising in taxable periods beginning with 2021, and is a net operating loss carryback for each of the 5 taxable years preceding the taxable year of the net operating loss for net operating losses arising in taxable periods beginning January 1, 2018 through December 31, 2020, and for each of the 2 taxable years preceding the taxable year of the net operating loss for net operating losses arising in taxable periods beginning with 2021. Establishes a formula for the net operating loss carryover and the net operating loss carryback. Retroactive to tax years beginning with 2018. AS PASSED SENATE

First sponsor: Sen. Leach ( - Dist )


 

General Comments (all lists):

2-8-21 BT monitor

S1392: NET OPERATING LOSS; CARRYBACK; CARRYOVER 4/1 retained on House COW calendar.
S1397: INTERNAL REVENUE CODE; CONFORMITY

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, 2021. For the purpose of Title 43 (Taxation of Income), the definition of "Internal Revenue Code" for tax year 2021 means the U.S. Internal Revenue Code in effect on January 1, 2021. For the purpose of Title 43 (Taxation of Income), the definition of "Internal Revenue Code" for tax years beginning January 1, 2020 means the U.S. Internal Revenue Code in effect on January 1, 2020, including those provisions of the Coronavirus Aid, Relief, and Economic Security Act, the Paycheck Protection Program Flexibility Act of 2020, and the Consolidated Appropriations Act of 2021 that are retroactively effective during tax year 2020.

First sponsor: Sen. Livingston ( - Dist )


 

General Comments (all lists):

2-8-21 BT monitor

S1397: INTERNAL REVENUE CODE; CONFORMITY 3/30 House appro held.
S1398: TPT DEDUCTIONS; COMPUTER DATA CENTERS

The exemption from the retail classification of transaction privilege taxes (TPT) for computer data equipment sold to the owner, operator or qualified colocation tenant of a computer data center for use in the qualified computer data center is deleted and replaced with a deduction from the tax base of the retail classification of TPT for such computer data equipment. Session law requires any claim for refund of TPT based on the retroactive application of this change to be submitted to the Department of Revenue by December 31, 2021. The aggregate refund amount is capped at $10,000. Interest is not allowed and may not be compounded on any refundable amount of these claims if paid before July 1, 2022. Contains a legislative intent section. Retroactive to tax period beginning September 13, 2013. Nonseverability clause.

First sponsor: Sen. Livingston ( - Dist )


 

General Comments (all lists):

2-8 BT recommends Support

2-12 PA Support

S1398: TPT DEDUCTIONS; COMPUTER DATA CENTERS 3/2 referred to House ways-means.
S1463: DIFI; OMNIBUS

Numerous changes to statutes relating to the Department of Insurance and Financial Institutions (DIFI). The Superintendent of Financial Institutions is renamed the Deputy Director of the Financial Institutions Division of DIFI. The uniform standards of professional appraisal practice as published by the Appraisal Standards Board are the standards for the appraisal practice in Arizona unless the Deputy Director objects. Repeals the chapter of statute regulating deferred presentment companies. Allows the Deputy Director to contract for the testing of applicants for mortgage broker licenses and to allow the contractor to charge a reasonable testing fee. Eliminates fees for approving articles of incorporation and changing responsible persons or active managers on financial institution licenses. Establishes a fee of $300 plus $300 for each branch office for a premium finance company. Changes the definition of "control" to increase the direct or indirect ownership or voting shares to 25 percent, from 15 percent. States that a consumer loan made under a consumer lender license is not a secondary motor vehicle finance transaction. Retroactive to July 1, 2020. AS SIGNED BY GOVERNOR

First sponsor: Sen. Livingston ( - Dist )


 

General Comments (all lists):

2-8-21 BT monitor

S1463: DIFI; OMNIBUS 5/10 signed by governor. Chap. 356, Laws 2021. message
S1484: INTERNAL REVENUE CODE; CONFORMITY

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, 2021. For the purpose of Title 43 (Taxation of Income), the definition of "Internal Revenue Code" for tax year 2021 means the U.S. Internal Revenue Code in effect on January 1, 2021. For the purpose of Title 43 (Taxation of Income), the definition of "Internal Revenue Code" for tax years beginning January 1, 2020 means the U.S. Internal Revenue Code in effect on January 1, 2020, including those provisions of the Coronavirus Aid, Relief, and Economic Security Act, the Paycheck Protection Program Flexibility Act of 2020, and the Consolidated Appropriations Act of 2021 that are retroactively effective during tax year 2020.

First sponsor: Sen. Mesnard ( - Dist )


 

General Comments (all lists):

2-8 BT recommends Support

2-12 PA Support

S1484: INTERNAL REVENUE CODE; CONFORMITY 1/28 referred to Senate fin.
S1494: INCOME TAX; SUBTRACTION; FDIC PREMIUMS

For the purpose of computing Arizona taxable income for a corporation for any tax year beginning with 2020, the amount of any Federal Deposit Insurance Corporation premiums paid or incurred by the taxpayer that is disallowed as a deduction for federal income tax purposes is subtracted from Arizona gross income. Retroactive to tax years beginning with 2020.

First sponsor: Sen. Livingston ( - Dist )


 

General Comments (all lists):

2-8 BT recommends Support

2-12 PA Support

S1494: INCOME TAX; SUBTRACTION; FDIC PREMIUMS 3/2 referred to House ways-means.
S1721: TPT; PRIME CONTRACTING CLASSIFICATION

The gross proceeds of sales or gross income derived from a construction contract with an owner of real property or the improvements to real property that does not exceed $100,000 per unit for a "residential project" (defined) or $1 million for a nonresidential project is not subject to tax under the prime contracting classification of transaction privilege taxes, and is required to be exempt from municipal transaction privilege and use taxes. Only the contract price is used to determine whether a contract exceeds the threshold amount described in this paragraph with no subtractions for amounts paid to subcontractors or any deductions or exemptions allowed. Project elements cannot be artificially separated from a contract to cause a project to qualify for this exemption. The Department of Revenue has the burden of proving that project elements have been artificially separated from a contract. A contract that primarily involves construction of any electricity generating facility or system installed on any commercial, residential or governmental property, including the maintenance, repair, replacement or alteration of existing improvements of an electricity generating or distribution facility, is not subject to tax under the prime contracting classification of transaction privilege taxes. Retroactive to contracts entered into beginning July 1, 2021. Establishes provisions for application to contracts that were bid or entered into from January 1, 2015 through July 1, 2021.

First sponsor: Sen. Fann ( - Dist )


 

General Comments (all lists):

2-8-21 BT monitor

S1721: TPT; PRIME CONTRACTING CLASSIFICATION 3/2 from Senate rules okay.
S1752: CONFORMITY; INTERNAL REVENUE CODE (COMMUNITY FACILITIES DISTRICTS)

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 March 11, 2021, including provisions that became effective during 2020 with the specific adoption of all retroactive effective dates, but excluding any changes enacted after March 11, 2021. For the purpose of Title 43 (Taxation of Income), the definition of "Internal Revenue Code" for tax years beginning with 2021 means the U.S. Internal Revenue Code in effect on March 11, 2021, including provisions that became effective during 2020 with the specific adoption of all retroactive effective dates, but excluding any changes enacted after March 11, 2021. For the purpose of Title 43 (Taxation of Income), the definition of "Internal Revenue Code" for tax year 2020 means the U.S. Internal Revenue Code in effect on January 1, 2020, including those provisions of the Families First Coronavirus Response Act, the Coronavirus Aid, Relief, and Economic Security Act, the Paycheck Protection Program Flexibility Act of 2020, and the Consolidated Appropriations Act of 2021, and the American Rescue Plan Act of 2021 that are retroactively effective during tax year 2020. Provisions of the Coronavirus Aid, Relief, and Economic Security Act that are retroactively effective are also added to the definitions of “Internal Revenue Code” for tax years 2019, 2018, 2017, 2016, 2015, 2014, and 2013. AS SIGNED BY GOVERNOR

First sponsor: Sen. Leach ( - Dist )


 

General Comments (all lists):

2-8-21 BT monitor

S1752: CONFORMITY; INTERNAL REVENUE CODE 4/14 signed by governor. Chap. 232, Laws 2021. message
S1783: SMALL BUSINESSES; ALTERNATE INCOME TAX

Levies an "Arizona small business" (defined) income tax of 4.5 percent of "Arizona small business taxable income" (defined). Establishes adjustments, deductions, and credits for Arizona small business income taxes. For tax years beginning with 2021, a small business taxpayer is allowed to elect to file a return for the tax year with the Department of Revenue to report that small business taxpayer's share of Arizona small business gross income. Modifies the tax rates for the income of estates or any kind of property held in trust for tax years beginning with 2021. Retroactive to January 1, 2021. AS SIGNED BY GOVERNOR

First sponsor: Sen. Mesnard ( - Dist )
Others: Rep. Bolick (R - Dist 20), Sen. Livingston (R - Dist 22)


 

General Comments (all lists):

2-8-21 BT monitor

3-8 BT support

S1783: SMALL BUSINESSES; ALTERNATE INCOME TAX 7/9 signed by governor. Chap. 436, Laws 2021. message
S1799: INCOME TAX; STANDARD DEDUCTION; INCREASE

For tax years beginning with 2022, the standard deduction for individual income taxes is increased to $24,400, from $12,200, for a single person or a married person filing separately, increased to $36,700, from $18,350, for a head of household, and increased to $48,800, from $24,400, for a married couple filing jointly. For each taxable year beginning with 2023, the Department of Revenue is required to adjust these dollar amounts for inflation in the same manner in which the federal basic standard deduction is adjusted for inflation pursuant to the federal Internal Revenue Code.

First sponsor: Sen. Borrelli ( - Dist )


 

General Comments (all lists):

2-8-21 BT monitor

S1799: INCOME TAX; STANDARD DEDUCTION; INCREASE 2/3 referred to Senate fin.
SCR1024: INITIATIVES; TAX INCREASES; VOTE REQUIREMENT

The 2022 general election ballot is to carry the question of whether to amend the state Constitution to require an initiative or referendum measure that provides for, or directs the legislative body to provide for, a new tax, increased tax rate, reducing or eliminating an existing tax reduction feature, establishing a special taxing district, or any of these elements in combination with any reduction of existing tax collections if the net result is an increase in tax revenues to either state or local government, to be approved by 2/3 of the votes cast on the measure to become law, instead of a majority of the votes cast.

First sponsor: Sen. Petersen ( - Dist )


 

General Comments (all lists):

3-8: BT monitor

SCR1024: INITIATIVES; TAX INCREASES; VOTE REQUIREMENT 3/23 from House rules okay.
SCR1040: STATE INCOME TAX; PHASE-OUT

The 2022 general election ballot is to carry the question of whether to amend state statute to phase out the individual income tax over nine years beginning with tax year 2023 until the tax is zero in tax years beginning with 2032.

First sponsor: Sen. Petersen ( - Dist )
Others: Sen. Livingston (R - Dist 22)


 

General Comments (all lists):

2-8-21 BT monitor

SCR1040: STATE INCOME TAX; PHASE-OUT 2/3 referred to Senate fin.