SB1010 - 472R - House Bill Summary

House of Representatives

SB 1010

national guard compensation; tax subtraction

Sponsors: Senator Waring

X	Committee on Counties, Municipalities and Military Affairs
	Caucus and COW
	As Engrossed and As Passed the House

SB 1010 creates an income tax subtraction for compensation paid to Arizona National Guard members.

History

Laws 2005, Chapter 267 authorized compensation for state employees who are members of the Arizona National Guard or Armed Forces Reserves for time spent on active military duty. This compensation was issued for an equal to the amount of the Guardsman regular salary, minus the amount paid for military pay and allowances. Additionally, Laws 2005, Chapter 264 allowed for a one thousand dollar tax credit for the employer of a full-time employee who is deployed as a member of the Arizona National Guard.

There are approximately 7,000 National Guard members in Arizona who are qualified to serve during state and national emergencies. Estimates provided by the Department of Emergency and Military Services (DEMA) state that a National Guardsman who is married with dependents makes a salary of approximately $4,043 per month ($48,516 annually) and a single National Guardman can expect to make $3,575 monthly ($42,900).

Provisions

· Establishes an income tax subtraction for compensation, bonuses and allowances received by service as a member of the United States Armed Forces including active service and reserve members or the Arizona National Guard.

· Limits this subtraction to five thousand dollars or less.

· Becomes effective on January 1, 2007.

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Forty-seventh Legislature