Budget & Tax
55th Legislature - 2nd Regular Session, 2022 Sunday, Sep 25 2022 1:17 AM
Bill Summaries
H2455: INCORPORATION; URBAN AREAS

Various changes to statutes relating to incorporation. At least six months before publishing a copy of a petition for incorporation of a community, the petitioners are required to provide to the county board of supervisors written notice of their intention to publish a copy of the petition for incorporation, and to publish the written notice for two consecutive weeks in a newspaper of general circulation in the area to be affected. If a planned community association notifies the county board of supervisors of its request to be excluded from a petition to incorporate, the board is required to exclude the area covered by the planned community association from the petition. Uninhabited, rural or farm lands may be included in an area to be incorporated if the lands have been platted and approved by the county board of supervisors for housing or commercial development before filing an incorporation petition, or if the current owner of the lands agrees to include the property and provides a written, notarized statement supporting the inclusion. AS SIGNED BY GOVERNOR

First sponsor: Rep. Carter (R - Dist 8)
Others: Rep. Biasiucci (R - Dist 5), Rep. Dunn (R - Dist 13), Rep. Fillmore (R - Dist 16), Rep. Finchem (R - Dist 11), Rep. Kavanagh (R - Dist 23), Rep. Martinez (R - Dist 11), Rep. Nguyen (R - Dist 1)


 

General Comments (all lists):

1/19/22- monitor

H2455: INCORPORATION; URBAN AREAS 4/6 signed by governor. Chap. 108, Laws 2022. message
H2497: INCOME TAX; RATES; REDUCTION

For tax year 2022, the Arizona individual and corporate income tax rate is 2.5 percent of taxable income. For tax years 2023 and after, the individual and corporate income tax rate is 1.5 percent of taxable income. Some sections of Laws 2021, Chapter 412 are repealed. Retroactive to January 1, 2022. [Capitol Reports Note: the repealed sections of Laws 2021, Chapter 412 are the subject of referendum petition R-03-2021, which qualified for placement on the 2022 general election ballot.]

First sponsor: Rep. Hoffman (R - Dist 12)
Others: Rep. Barton (R - Dist 6), Rep. Blackman (R - Dist 6), Rep. Burges (R - Dist 1), Rep. Carter (R - Dist 8), Rep. Chaplik (R - Dist 23), Rep. Fillmore (R - Dist 16), Rep. Kavanagh (R - Dist 23), Rep. Parker (R - Dist 16), Rep. Pingerelli (R - Dist 21)


 

General Comments (all lists):

1/19/22- monitor

H2497: INCOME TAX; RATES; REDUCTION 1/24 referred to House ways-means.
H2693: TAX CREDIT; CHARITABLE ORGANIZATIONS; ADJUSTMENT

For tax years beginning with 2023, the Department of Revenue is required to adjust the dollar amounts of the tax credit for contributions to qualifying charitable organizations according to the average annual change in the metropolitan Phoenix consumer price index. The dollar amounts cannot be revised below the amounts for the prior tax year. Modifies eligibility requirements for qualifying charitable organizations. Retroactive to January 1, 2022. AS SIGNED BY GOVERNOR

First sponsor: Rep. Toma (R - Dist 22)
Others: Rep. Carroll (R - Dist 22), Rep. Udall (R - Dist 25)


 

General Comments (all lists):

2/7/22 BT - Support

2/10/22 PA Support

H2693: TAX CREDIT; CHARITABLE ORGANIZATIONS; ADJUSTMENT 7/6 signed by governor. Chap. 385, Laws 2022. message
H2701: G&F; VETERANS; HUNTING; FISHING; LICENSES (TPT; PRIME CONTRACTING; TAX BASE)

The Game and Fish Commission is authorized to reduce the fees for a hunting or fishing license to one half of the full license fee for a veteran of the U.S. Armed Forces who has been a resident of Arizona for one year or more immediately before applying for the license and who submits satisfactory proof that the person is a bona fide purple heart medal recipient. The Game and Fish Commission is authorized to reduce the fees for a hunting or fishing license to up to 25 percent less than the full license fee for a veteran of the U.S. Armed Forces who has been a resident of Arizona for one year or more immediately before applying for the license and who receives compensation from the U.S. government for a service-connected disability. AS SIGNED BY GOVERNOR

First sponsor: Rep. Biasiucci (R - Dist 5)


 

General Comments (all lists):

2/7/22 BT - Monitor

H2701: G&F; VETERANS; HUNTING; FISHING; LICENSES 7/1 signed by governor. Chap. 335, Laws 2022. message
H2749: TPT; PRIME CONTRACTING; EXEMPTION; ALTERATIONS

The definitions of "modification" and "alteration" for the purpose of computing the tax base for the prime contracting classification of transaction privilege taxes are modified. Effective January 1, 2023.

First sponsor: Rep. Cobb (R - Dist 5)
Others: Rep. Biasiucci (R - Dist 5)


 
H2749: TPT; PRIME CONTRACTING; EXEMPTION; ALTERATIONS 6/24 Senate COW approved with amend #4891. FAILED Senate 10-14.
HCR2017: CONSTITUTIONAL PROPERTY TAX EXEMPTIONS; CONSOLIDATION

The 2022 general election ballot is to carry the question of whether to amend the state Constitution to consolidate and reorganize provisions relating to exemptions from property taxation. Sections of the state Constitution relating to property tax exemptions are repealed and replaced. Impossible to determine new provisions without a line by line comparison.

First sponsor: Rep. Carter (R - Dist 8)
Others: Rep. Biasiucci (R - Dist 5), Rep. Blackman (R - Dist 6), Rep. Fillmore (R - Dist 16), Rep. Finchem (R - Dist 11), Rep. Kaiser (R - Dist 15), Rep. Kavanagh (R - Dist 23), Rep. Martinez (R - Dist 11), Rep. Wilmeth (R - Dist 15)


 

General Comments (all lists):

1/19/22- monitor

HCR2017: CONSTITUTIONAL PROPERTY TAX EXEMPTIONS; CONSOLIDATION 3/31 from Senate appro with amend #4900.
S1003: PROPERTY TAX LEVY; CALCULATION; FEDERAL MONIES (TECH CORRECTION; ELECTROMAGNETIC PULSE PREPAREDNESS)

Minor change in Title 26 (Military Affairs and Emergency Management) related to electromagnetic pulse preparedness. Apparent striker bus.

First sponsor: Sen. Leach (R - Dist 11)


 

General Comments (all lists):

S/E: PROPERTY TAX; CALCULATION; FEDERAL MONIES

S1003: PROPERTY TAX LEVY; CALCULATION; FEDERAL MONIES 3/9 Senate COW approved with amend #4401. NOTE SHORT TITLE CHANGE. FAILED Senate 14-14.
S1004: REMOTE SELLERS; TPT; ADMINISTRATION (TECH CORRECTION; PRISONERS; MENTAL DISORDERS)

Minor change in Title 31 (Prisons and Prisoners) related to examination of prisoners. Apparent striker bus.

First sponsor: Sen. Leach (R - Dist 11)


 

General Comments (all lists):

Neutral

S/e: REMOTE SELLERS; TPT; ADMINISTRATION

Dead

S1004: REMOTE SELLERS; TPT; ADMINISTRATION 2/28 Senate COW approved with amend #4399 and flr amend #4572. NOTE SHORT TITLE CHANGE.
S1011: SCHOOL BOARD ASSOCIATIONS; MEMBERSHIP; PAYMENT

School districts are prohibited from using tax monies to pay for membership in a state school board association or a national school board association.

First sponsor: Sen. Townsend (R - Dist 16)


 

General Comments (all lists):

1/19/22- monitor

S1011: SCHOOL BOARD ASSOCIATIONS; MEMBERSHIP; PAYMENT 1/25 from Senate rules okay.
S1093: PROPERTY TAX; CLASS ONE; EQUALIZATION ASSISTANCE

Reduces the assessed valuation of class one property for property tax purposes to 15.5 percent in 2026 and 15 percent in 2027 and after, from 16 percent. Establishes reduced state equalization assistance property tax rates for tax years 2022 through 2027. Establishes a maximum fire district property tax rate of $3.75 per $100 of assessed valuation for tax year 2024. AS SIGNED BY GOVERNOR

First sponsor: Sen. Mesnard (R - Dist 17)
Others: Sen. Leach (R - Dist 11), Sen. Livingston (R - Dist 22)


 

General Comments (all lists):

1/19/22- Support

1/28/22 PA- SUPPORT

S1093: PROPERTY TAX; CLASS ONE; EQUALIZATION ASSISTANCE 4/22 signed by governor. Chap. 171, Laws 2022. message
S1095: PROPERTY TAX EXEMPTIONS; STATUTORY CONFORMITY

Exempts the property of veterans with service or nonservice connected disabilities who are Arizona residents from taxation, with an allowed exemption amount of $4,188 multiplied by the percentage of the veteran's disability, as rated by the U.S. Department of Veterans Affairs, if the person's total assessment does not exceed $28,459. The exemption limit for property of widows, widowers and persons with total and permanent disabilities is increased to $4,188, from $3,000, if the person's' total assessment does not exceed $28,459, increased from $20,000. Also makes various changes to property tax statutes in order to conform to proposed changes to property tax exemptions contained in the state Constitution. Conditionally enacted on the state Constitution being amended by a vote of the people at the next general election to consolidate and reorganize provisions relating to exemptions from property taxation. AS SIGNED BY GOVERNOR

First sponsor: Sen. Mesnard (R - Dist 17)
Others: Sen. Leach (R - Dist 11)


 

General Comments (all lists):

1/19/22- monitor

S1095: PROPERTY TAX EXEMPTIONS; STATUTORY CONFORMITY 7/6 signed by governor. Chap. 341, Laws 2022. message
S1264: 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, 2022. For the purpose of Title 43 (Taxation of Income), the definition of "Internal Revenue Code" for tax year 2022 means the U.S. Internal Revenue Code in effect on January 1, 2022. For the purpose of Title 43 (Taxation of Income), the definition of "Internal Revenue Code" for tax years beginning January 1, 2021 means the U.S. Internal Revenue Code in effect on March 11, 2021, including those provisions of the federal PPP Extension Act of 2021 and the Infrastructure Investment and Jobs Act that are retroactively effective during tax year 2021. AS SIGNED BY GOVERNOR

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


 

General Comments (all lists):

2/7/22 BT - Support

2/10/22 PA Support

S1264: INTERNAL REVENUE CODE; CONFORMITY 3/23 signed by governor. Chap. 41, Laws 2022. message
S1266: PROPERTY TAX; ADMINISTRATION; COUNTY ASSESSOR

Various changes to statutes relating to property taxes. When claiming a property tax exemption, the person is required to file an affidavit with the county assessor, signed under penalty of perjury, as to the person's eligibility, and the person is no longer required to appear before the county assessor or a notary public to do so. The county assessor is authorized to accept affidavits electronically. AS SIGNED BY GOVERNOR

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


 

General Comments (all lists):

2/7/22 BT - Monitor (leaning oppose after review)

S1266: PROPERTY TAX; ADMINISTRATION; COUNTY ASSESSOR 5/9 signed by governor. Chap. 228, Laws 2022. message
S1269: CONFORMITY; INTERNAL REVENUE CODE

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, 2022. For the purpose of Title 43 (Taxation of Income), the definition of "Internal Revenue Code" for tax year 2022 means the U.S. Internal Revenue Code in effect on January 1, 2022. AS PASSED SENATE

First sponsor: Sen. Leach (R - Dist 11)


 

General Comments (all lists):

2/7/22 BT - Support

2/10/22 PA Support

Now: school finance revision-- hold on position

S1269: CONFORMITY; INTERNAL REVENUE CODE 3/29 from House appro with amend #4889.
S1274: PROPERTY TAX LEVY; CALCULATION; FEDERAL MONIES

For tax years 2022 and 2023, if a county's or municipality's proposed primary property tax levy is greater than the amount levied in the previous tax year and the county or municipality received monies from the American Rescue Plan Act of 2021, the county or municipality is required to use the monies to reduce the proposed primary property tax levy so that the does not exceed the previous year's amount, except for "amounts attributable to new construction" (defined). Retroactive to January 1, 2022.

First sponsor: Sen. Leach (R - Dist 11)


 

General Comments (all lists):

2/7/22 BT - Monitor

S1274: PROPERTY TAX LEVY; CALCULATION; FEDERAL MONIES 1/24 referred to Senate fin.
S1322: TPT; USE TAX; HYDROGEN; EXEMPTION (CHARITABLE ORGANIZATION TAX CREDIT; INFLATION)

The list of exemptions from the retail classification of transaction privilege and use taxes is expanded to include gross proceeds of sales or gross income from sales of hydrogen used to propel a motor vehicle, and sales of hydrogen sold to a qualified environmental technology manufacturer, producer, or processor and directly used in generating energy for environmental technology manufacturing, producing, or processing. The list of deductions from the tax base is expanded to include pipes or valves four inches in diameter or larger used to transport hydrogen and machinery or equipment employed in connection with producing or transmitting hydrogen. Applies to taxable periods beginning on or after the first day of the month following the effective date of this legislation. AS PASSED HOUSE

First sponsor: Sen. Shope (R - Dist 8)


 

General Comments (all lists):

2/7/22 BT - Support

2/10/22 PA Support

S1322: TPT; USE TAX; HYDROGEN; EXEMPTION 6/24 Senate concurred in House amendments. FAILED Senate on final reading 14-11.
S1461: 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 (R - Dist 22)


 

General Comments (all lists):

2/7/22 BT - Support

2/10/22 PA Support

S1461: INCOME TAX; SUBTRACTION; FDIC PREMIUMS 3/2 referred to House ways-means.
S1496: REMOTE SELLERS; TPT; ADMINISTRATION

If another state tax agency extends comity to Arizona in the tax administration for remote sellers, the Department of Revenue (DOR) 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. DOR is required to cooperate with other state tax agencies to develop a "central clearinghouse" (defined). If a central clearinghouse is established, DOR is required to use the central clearinghouse to accept all tax returns and remittances for remote sellers. Beginning in calendar year 2023, 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 2023 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.

First sponsor: Sen. Leach (R - Dist 11)


 

General Comments (all lists):

2/7/22 BT - Monitor

S1496: REMOTE SELLERS; TPT; ADMINISTRATION 1/27 referred to Senate fin.
S1531: HOUSING TRUST FUND; APPROP (HOUSING TRUST FUND; UNCLAIMED PROPERTY)

Appropriates $100 million from the monies allocated to Arizona from the federal American Rescue Plan Act of 2021 in FY2022-23 to the Housing Trust Fund. AS PASSED SENATE

First sponsor: Sen. Alston (D - Dist 24)
Others: Rep. Andrade (D - Dist 29), Sen. Bowie (D - Dist 18), Sen. Contreras (D - Dist 19), Rep. Dalessandro (D - Dist 2), Sen. Gabaldon (D - Dist 2), Sen. Gonzales (D - Dist 3), Sen. Hatathlie (D - Dist 7), Rep. M. Hernandez (D - Dist 26), Rep. Jermaine (D - Dist 18), Rep. Liguori (D - Dist 28), Sen. Livingston (R - Dist 22), Rep. Longdon (D - Dist 24), Sen. Marsh (D - Dist 28), Sen. Otondo (D - Dist 4), Rep. Pawlik (D - Dist 17), Sen. Quezada (D - Dist 29), Sen. Rios (D - Dist 27), Rep. Solorio (D - Dist 30), Sen. Stahl Hamilton (D - Dist 10), Sen. Steele (D - Dist 9), Sen. TerĂ¡n (D - Dist 30)


 

General Comments (all lists):

S/E: HOUSING TRUST FUND; APPROPRIATION

S1531: HOUSING TRUST FUND; APPROP 3/8 referred to House hel-hu ser, appro.
S1592: GOVERNOR'S DECLARATION; FISCAL IMPACT ANALYSIS

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. AS VETOED BY GOVERNOR. In his veto message, the Governor questioned the need for this legislation and stated his belief that this legislation fails to consider important context.

First sponsor: Sen. Gray (R - Dist 21)


 

General Comments (all lists):

2/7/22 BT - Support

2/10/22 PA Support

S1592: GOVERNOR'S DECLARATION; FISCAL IMPACT ANALYSIS 7/6 VETOED message.
S1634: MUNICIPAL REAL PROPERTY; SALE; VALUATION

The circumstances under which real property of a municipality cannot be sold without authorization from the voters is changed to apply to real property of a municipality that has a total assessed value for the current year net assessed value subject to taxation in prior year, the value of which exceeds 2.5 percent of the locally assessed real property value of a municipality.

First sponsor: Sen. Shope (R - Dist 8)


 

General Comments (all lists):

S/E: AFFORDABLE HOUSING; MUNICIPALITIES

S1634: MUNICIPAL REAL PROPERTY; SALE; VALUATION 2/17 withdrawn from Senate fin and further referred to Senate appro.
SCR1011: CONSTITUTIONAL PROPERTY TAX EXEMPTIONS

The 2022 general election ballot is to carry the question of whether to amend the state Constitution to consolidate and reorganize provisions relating to exemptions from property taxation. Sections of the state Constitution relating to property tax exemptions are repealed and replaced. Establishes a list of property that is exempt from taxation, Establishes a list of property that the Legislature is authorized to exempt from taxation by law and allows the Legislature to determine by law the qualifications for, and the amount of, the exemptions of property on the list. AS SENT TO SECRETARY OF STATE

First sponsor: Sen. Mesnard (R - Dist 17)
Others: Sen. Leach (R - Dist 11)


 

General Comments (all lists):

1/19/22- monitor

SCR1011: CONSTITUTIONAL PROPERTY TAX EXEMPTIONS 6/22 House COW approved. Passed House 58-0; ready for Secretary of State.