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REFERENCE TITLE: universal regulatory tax credit |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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HB 2821 |
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Introduced by Representative Smith D
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AN ACT
Amending title 35, Arizona Revised Statutes, by adding chapter 9; relating to credits against state and local taxes.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 35, Arizona Revised Statutes, is amended by adding chapter 9, to read:
CHAPTER 9
UNIVERSAL REGULATORY TAX CREDIT
ARTICLE 1. GENERAL PROVISIONS
35-1101. Definitions
In this chapter, unless the context otherwise requires:
1. "Creditable cost" means the loss of the fair market value of property incurred as a direct result of an excessive regulation.
2. "Creditable expense" means any actual expense that is incurred as a direct result of an excessive regulation, including the fair market value of time spent fulfilling regulatory requirements.
3. "Excessive regulation" means any of the following:
(a) Any regulation that does not protect individuals from verifiable and substantial damage to their health and safety.
(b) Any regulation that primarily serves esthetic or cultural purposes.
(c) Any regulation that restricts or prohibits ordinarily harmless property conditions.
(d) Any regulation that restricts or prohibits ordinarily harmless action by individuals or organizations.
(e) Any regulation that restricts or prohibits the ordinarily harmless exercise or enjoyment of an individual's or organization's legal rights.
(f) Any regulation that mandates individuals or organizations take action that is both:
(i) Unlikely to promote public health or safety.
(ii) Likely to cause substantially more economic costs than benefits.
4. "Regulation" means any legislation, administrative rule or executive action by this state or its agencies or political subdivisions that is governmental in nature and not proprietary, that has the force of law and that either:
(a) Requires individuals or private organizations to act in one or more ways.
(b) Restricts or prohibits individuals or private organizations from acting in one or more ways.
(c) Restricts or prohibits one or more property conditions.
5. "Taxable period" means the recurring time interval for which a tax liability is computed and assessed.
6. "Taxpayer" means either:
(a) The individual or private organization on which any tax authorized by title 9, 11, 15, 20, 28, 42, 43 or 48 is imposed, levied or assessed.
(b) The owner of property against which tax is assessed pursuant to title 9, 11, 15, 42 or 48.
35-1102. Allowance of credit
A. A credit is allowed against tax liability assessed pursuant to title 9, 11, 15, 20, 28, 42, 43 or 48 for the creditable costs and creditable expenses of excessive regulation incurred by a taxpayer after December 31, 2011.
B. the amount of credit under this section is the total amount of creditable costs and creditable expenses incurred by a taxpayer in the taxable period for which the tax liability is computed and assessed, but the amount of the credit that may be applied for the taxable period in which the creditable expenses were INCURRED shall not exceed ten per cent of the taxpayer's aggregate tax liability for that taxable period to the governmental entity imposing or authorizing the excessive regulation.
C. If the amount of the credit under subsection B of this section exceeds the amount that may be applied for that taxable period, the amount of the credit not used as an offset against the tax liability may be carried forward as a credit against up to ten consecutive subsequent taxable periods, but not exceeding the taxpayer's aggregate tax liability in each subsequent taxable period, unless the excessive regulation is repealed or rescinded.
D. The credit is allowed only against the tax liability assessed by the governmental entity imposing or authorizing the excessive regulation.
35-1103. Claiming the credit
A. A taxpayer must claim a credit under this article on a single universal claim form that is prescribed by the state treasurer and submitted to the taxing agency of the governmental entity imposing or authorizing the excessive regulation on or before the due date for payment of the tax liability for the taxable period. On the claim form the taxpayer must identify:
1. Each excessive regulation resulting in any portion of the credit and the corresponding amount of creditable costs and creditable expenses attributable to each excessive regulation.
2. The taxing entity directly responsible for enacting, adopting or enforcing the excessive regulation.
3. The nature, source and amount of any tax liability against which the claimed credit will be applied.
4. The taxpayer's aggregate tax liability to the taxing entity for the taxable period.
5. The amount of the credit that will be applied to the tax liability and any amount that will be carried over to subsequent taxable periods.
B. If the taxpayer fails to submit a complete and correct claim form, the taxing agency shall disallow the credit until the taxpayer is in full compliance.
35-1104. Transferability
A. All or part of any unclaimed amount of credit under section 35-1102 may be sold or otherwise transferred under the following conditions:
1. A single sale or transfer may involve one or more transferees, but a transferee may not thereafter sell or transfer the credit.
2. Both the transferor and transferee must submit a single written notice of the transfer to the state treasurer within thirty days after the sale or transfer. The notice shall include:
(a) A processing fee of two hundred dollars.
(b) The names of the transferor and transferee.
(c) The date of the transfer.
(d) The dollar amount of the credit transferred.
(e) The transferor's tax credit balance before the transfer and the remaining balance after the transfer.
(f) All tax identification numbers for both the transferor and transferee.
B. A transferee shall apply, and the taxing agency shall allow, the transferred credit against the transferee's liability for the same tax as the original taxpayer. The TRANSFEREE must submit to the taxing agency a copy of the notice under subsection A, paragraph 2 of this section.
C. If the transferor or transferee fails to comply with any provision of this section, the taxing authority shall disallow the credit until both the transferor and transferee are in full compliance.
35-1105. Administration by state treasurer; rules, forms and procedures
The state treasurer shall:
1. Administer this article, adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this article to encourage the repeal, RESCISSION or moderation of excessive regulation.
2. Maintain and, on request, provide to the public annual data on the total amount of monies credited pursuant to this article, in electronic format, both aggregated and disaggregated and categorized according to excessive regulation, taxing authority and responsible state agency or political subdivision, without personal identifying information of any taxpayer.
35-1106. Recoupment of revenue loss in case of shared responsibility for excess regulation
A. The state treasurer shall adopt rules and publish and prescribe forms and procedures as necessary to allow taxing entities under title 9, 11, 15, 20, 28, 42, 43 or 48 to recoup revenues attributable to any claimed credit under this article from any other state agency or political subdivision that is directly or jointly responsible for enacting or enforcing the excessive regulation giving rise to any part of the credit.
B. The taxing entity must promptly make demand for recoupment from each other responsible taxing entity or state agency on a form that provides all relevant information supplied by the taxpayer.
C. The state treasurer may establish a secure electronic clearinghouse to allow the demands for recoupment to be claimed and paid through electronic debits and credits to the accounts of the respective taxing entities and state agencies.
D. Each responsible taxing entity or state agency receiving a demand for recoupment is liable for the prompt payment of the amount demanded ratably.
E. If the responsible taxing entity or state agency receiving a demand for recoupment does not have sufficient monies to pay the amount of the demand, and will not have sufficient monies to pay the amount of the demand without new debt financing or imposing new or increased taxes or fees, each underlying excessive regulation identified by the taxpayer and all related enforcement proceedings or penalties shall be immediately considered to be void and not replaced with any substantially equivalent regulation for each taxable period in which the credit has been or could have been claimed. Thereafter, the demand is considered to be paid in full.
35-1107. Debt financing and increased tax or fee revenue prohibited
A. A taxing entity that is responsible for excessive regulation shall not engage in debt financing or impose new or increased taxes or fees to offset the fiscal impact of any credit allowed under this article.
B. If the fiscal impact of any credit allowed under this article poses a threat to public health and safety by requiring the discontinuation of essential government services, the underlying excessive regulation and all related enforcement proceedings or penalties are immediately considered to be void and shall not be replaced with any substantially equivalent regulation for each taxable period in which the credit has been or could have been claimed. Thereafter, the tax credit shall be disallowed on corresponding notice to the taxpayer.