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Arizona Revised Statutes

The Arizona Revised Statutes have been updated to include the revised sections from the 56th Legislature, 1st Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 56th Legislature, 2nd Regular Session, which convenes in January 2024.

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This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.

Title 43 - Taxation of Income

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Chapter 1
DEFINITIONS AND GENERAL PROVISIONS
Sec: 43-101-43-108
Article 1General Provisions
  • 43-105
  • Internal revenue code; definition; application
  • 43-107
  • Nonconformity in application of internal revenue code; abatement of penalties and interest; definitions
  • 43-108
  • Subtraction from gross income; ordinary and necessary expenses; marijuana establishments and marijuana testing facilities; definitions
Chapter 2
ADMINISTRATION
Sec: 43-201-43-244
Article 1General Administrative Provisions
  • 43-201
  • Preemption by state of income taxation
  • 43-206
  • Urban revenue sharing fund; allocation; distribution; withholding
  • 43-207
  • Illegal income; duty of law enforcement or prosecuting agency; distribution of revenue; definitions
  • 43-208
  • Administration and enforcement
  • 43-209
  • Collection of tax on income of professional athletes earned in this state; separate accounting for tax revenue from professional football; definition
  • 43-210
  • Premium tax credit; health insurance; certification of qualified persons; violation; classification; definitions
  • 43-211
  • I didn't pay enough fund
  • 43-212
  • Individual income tax model; fiscal impact requests; staff access
Article 2Income Tax Credit Review
  • 43-221
  • Joint legislative income tax credit review committee; report
  • 43-222
  • Income tax credit review schedule
  • 43-223
  • Requirements for new income tax credits established by the legislature
  • 43-224
  • Individual and corporate income tax credits; annual report; termination of unused credits
  • 43-225
  • Affordable housing tax credit review committee; reports
Article 3Miscellaneous Provisions
  • 43-241
  • Time for performance of acts; definition
  • 43-242
  • Change of taxpayer organization; nontaxable event
  • 43-243
  • State general fund revenue notification; tax rate adjustment
  • 43-244
  • State general fund revenue notification; tax rate adjustment
Chapter 3
RETURNS
Sec: 43-301-43-382
Article 1Taxpayers Required to File Returns
  • 43-301
  • Individual returns; definition
  • 43-302
  • Arizona small business income tax return; election; revocation
  • 43-303
  • Returns by agent or guardian
  • 43-305
  • Fiduciary returns; two or more fiduciaries
  • 43-308
  • Gross income defined for purposes of determination to file
  • 43-309
  • Joint returns of husband and wife
  • 43-310
  • Separate returns after filing joint returns
  • 43-311
  • Joint return after filing separate return
  • 43-312
  • Information return of sales; nonresident real estate transactions; escrow agents; reports
Article 2Form, Place and Time of Filing Returns
  • 43-321
  • Information required in returns
  • 43-322
  • Signature presumed to be taxpayer's
  • 43-323
  • Place and form of filing returns
  • 43-324
  • Rounding to the nearest dollar
  • 43-325
  • Time for filing returns
  • 43-327
  • Recomputation of tax or amended return due after federal adjustment; definition
  • 43-328
  • Returns filed by persons outside the United States
Article 5Confidentiality
  • 43-381
  • Confidentiality of information if returns prepared by person other than taxpayer; violation; classification
  • 43-382
  • Solicitation of return preparation prohibited; classification
Chapter 4
WITHHOLDING
Sec: 43-401-43-435
Article 1Withholding by Employer
  • 43-401
  • Withholding tax; rates; election by employee
  • 43-402
  • Definition of "employer"
  • 43-403
  • Employment excluded from withholding
  • 43-404
  • Extension of withholding to military retirement pensions and to other annuities; definition
  • 43-405
  • Extension of withholding to gambling winnings
  • 43-406
  • Extension of withholding to premature withdrawals of state and local government retirement contributions
  • 43-407
  • Extension of withholding to unemployment compensation payments
  • 43-408
  • Voluntary withholding on out-of-state wages
  • 43-409
  • Job creation withholdings clearing account
Article 2Rights and Duties of Employers
  • 43-411
  • Employer entitled to address of employee
  • 43-412
  • Returns of withholding to be filed with department
  • 43-413
  • Statement of withholding to employees
  • 43-414
  • Liability for failure to withhold
  • 43-415
  • Withholdings as trust fund for state
  • 43-416
  • Failure to remit withholding; classification
  • 43-417
  • Withholding without resort to legal action
  • 43-418
  • Payroll service company; registration; definitions
  • 43-419
  • Electronic remittance and filing required by payroll service company; penalty; definitions
Article 3Withholding as Payment of Tax for Employee
  • 43-431
  • Amounts withheld considered part payment of tax
  • 43-432
  • Refund for excess withholding
  • 43-433
  • Remedies for withheld taxes
  • 43-434
  • Exemption in case of nonresident employees
  • 43-435
  • Failure to collect and pay over tax; personal liability
Chapter 5
PAYMENT AND COLLECTION OF TAX
Sec: 43-501-43-583
Article 1Time and Place for Payment of Tax
  • 43-504
  • Tax payments made in advance
  • 43-505
  • Tax payments made to department; order of crediting
Article 5Collections
  • 43-562
  • Husband and wife, liability for tax
  • 43-563
  • Recovery of erroneous refunds
  • 43-567
  • Lien for tax on trust income
Article 6Estimated Tax
  • 43-581
  • Payment of estimated tax; rules; penalty; forms
  • 43-582
  • Payment of estimated tax by corporations; penalty; forms
  • 43-583
  • Payment of estimated tax by small business taxpayers; penalty; forms
Chapter 6
ABATEMENTS, CREDITS AND REFUNDS
Sec: 43-611-43-645
Article 1Refunds
  • 43-611
  • Protest of tax deemed claim for refund
  • 43-612
  • Contribution of portion of income tax refund to political parties trust fund
  • 43-613
  • Contribution to child abuse prevention fund
  • 43-614
  • Contribution of portion of refund to special olympics
  • 43-615
  • Contribution to game, nongame, fish and endangered species fund
  • 43-616
  • Contribution to neighbors helping neighbors fund
  • 43-617
  • Contribution for solutions teams assigned to schools
  • 43-618
  • Contribution to domestic violence services fund
  • 43-619
  • Contribution to the spaying and neutering of animals fund
  • 43-620
  • Contribution to veterans' donations fund
  • 43-621
  • Contribution to I didn't pay enough fund
  • 43-622
  • Contribution to sustainable state parks and roads fund
Article 3Other Tax Abatements
  • 43-645
  • Interest on related items or where related taxpayers exist
Chapter 7
JEOPARDY ASSESSMENTS; BANKRUPTCY; RECEIVERSHIP
Sec: 43-721-43-724
Article 2Bankruptcy or Receivership
  • 43-721
  • Immediate assessment upon bankruptcy or receivership
  • 43-722
  • Notice of bankruptcy or receivership to department
  • 43-723
  • Claim for tax in case of bankruptcy or receivership
  • 43-724
  • Collection of tax in case of bankruptcy or receivership
Chapter 9
GENERAL ACCOUNTING PROVISIONS
Sec: 43-901-43-961
Article 1Accounting Considerations
  • 43-901
  • Taxable income computation
  • 43-902
  • Period in which deductions and credits to be taken
Article 2Change in Law; Effect on Fiscal Year Taxpayer
  • 43-921
  • Computation of tax when law changed
  • 43-922
  • Payment or refund of tax when law changed
Article 3Returns for a Period of Less Than Twelve Months
  • 43-931
  • Change of accounting period; computation of income; due date of return
  • 43-932
  • Return for a taxpayer not in existence throughout a complete taxable year
Article 4Allocation of Income and Deductions by the Department
  • 43-941
  • Allocation in the case of affiliated taxpayers
  • 43-942
  • Allocation in the case of controlled corporations
  • 43-943
  • Allocation in the case of husband and wife
  • 43-944
  • Disclosure by department of basis of allocation
  • 43-945
  • Allocation of exemptions for blind persons and persons over sixty-five years of age
  • 43-946
  • Transactions between corporations and affiliated taxpayers
  • 43-947
  • Consolidated returns by an affiliated group of corporations; definitions
Article 5Transferee Liability
  • 43-951
  • Assessment against transferee for tax
  • 43-952
  • Liability of transferee of assets
  • 43-953
  • Period of limitation relating to transferees
Article 6Items Not Deductible
  • 43-961
  • Items not deductible in computation of taxable income
Chapter 10
INDIVIDUALS
Sec: 43-1001-43-1099
Article 1Definitions
  • 43-1002
  • Married person; application of definition
Article 2Tax Rates and Tables
  • 43-1013
  • Income tax surcharge for public education
  • 43-1014
  • Entity-level tax election; partnerships; S corporations; rules
Article 3Adjustments to Arizona Gross Income
  • 43-1021
  • Addition to Arizona gross income
  • 43-1022
  • Subtractions from Arizona gross income
  • 43-1023
  • Exemptions for blind persons and persons sixty-five years of age or older
  • 43-1024
  • Americans with disabilities act access expenditures
  • 43-1025
  • Agricultural crops contributed to charitable organizations; definitions
  • 43-1026
  • Additions and subtractions; Arizona small business income tax returns
  • 43-1027
  • Subtraction for wood stoves, wood fireplace or gas fired fireplaces; definitions
  • 43-1028
  • Sale of virtual currency or non-fungible tokens; calculation of gain or loss; gas fees; subtraction; definitions
  • 43-1029
  • Restoration of a substantial amount held under claim of right; computation of tax
Article 4Deductions
  • 43-1041
  • Optional standard deduction
Article 5Credits
  • 43-1071
  • Credit for income taxes paid to other states; definitions
  • 43-1072
  • Earned credit for property taxes; residents sixty-five years of age or older; definitions
  • 43-1072.01
  • Credit for increased excise taxes paid
  • 43-1072.02
  • Credit for increased transaction privilege or excise tax paid for education
  • 43-1074.01
  • Credit for increased research activities
  • 43-1074.02
  • Credit for investment in qualified small businesses
  • 43-1075
  • Affordable housing tax credit
  • 43-1076.01
  • Healthy forest production tax credit; definitions
  • 43-1077
  • Credit for entity-level income tax
  • 43-1078
  • Credit for Arizona small business excess credit amount
  • 43-1079.01
  • Credit for employing national guard members
  • 43-1081.01
  • Credit for agricultural pollution control equipment
  • 43-1082
  • Credit for motion picture production costs; qualifications; data maintenance; rules; definitions
  • 43-1083
  • Credit for solar energy devices
  • 43-1083.02
  • Renewable energy production tax credit; definitions
  • 43-1084
  • Credit for agricultural water conservation system
  • 43-1085
  • Credit for solar energy devices; commercial and industrial applications
  • 43-1086
  • Credit for donation to the military family relief fund subaccounts
  • 43-1088
  • Credit for contribution to qualifying charitable organizations; definitions
  • 43-1089
  • Credit for contributions to school tuition organization
  • 43-1089.01
  • Tax credit; public school fees and contributions; definitions
  • 43-1089.03
  • Credit for contributions to certified school tuition organization
  • 43-1089.04
  • Pro rata credit for business contributions by S corporation school tuition organizations; definition
Article 6Nonresidents
  • 43-1091
  • Gross income of a nonresident
  • 43-1092
  • Intangible income of a nonresident
  • 43-1093
  • Nonresident beneficiary of estate or trust income
  • 43-1094
  • Adjusted gross income of a nonresident
  • 43-1095
  • Apportionment of deductions
  • 43-1096
  • Credit for income taxes paid by nonresident; definitions
  • 43-1098
  • Apportionment of exemptions
Chapter 11
CORPORATIONS
Sec: 43-1101-43-1184
Article 1Definitions
Article 2Taxes and Rates
Article 3Adjustments to Arizona Gross Income
  • 43-1121
  • Additions to Arizona gross income; corporations
  • 43-1122
  • Subtractions from Arizona gross income; corporations
  • 43-1123
  • Net operating loss; definition
  • 43-1124
  • Americans with disabilities act access expenditures
  • 43-1125
  • Domestic international sales corporation
  • 43-1126
  • Small business corporation; election as to taxable status; return; termination
  • 43-1127
  • Deferred exploration expenses
  • 43-1129
  • Amortization of expenses incurred in acquisition of pollution control devices; depreciation
  • 43-1130
  • Amortization of the cost of child care facilities
  • 43-1130.01
  • Restoration of a substantial amount held under claim of right; computation of tax
Article 4Uniform Division of Income for Tax Purposes Act
  • 43-1132
  • Taxpayers liable; exceptions to allocation and apportionment; examination of evidence of income and expenses
  • 43-1134
  • Allocation of nonbusiness income
  • 43-1138
  • Patent and copyright royalties
  • 43-1139
  • Allocation of business income
  • 43-1146
  • Situs of sales of tangible personal property
  • 43-1147
  • Situs of sales of other than tangible personal property; definitions
  • 43-1148
  • Apportionment by department
Article 5Cessation of Corporate Activities
  • 43-1151
  • Tax clearance upon cessation of corporate activities
  • 43-1152
  • Powers of corporation suspended for nonpayment of tax
  • 43-1153
  • Certificate of suspension of a corporation
  • 43-1154
  • Penalty for exercising powers after suspension
  • 43-1155
  • Voidable contracts by corporations
  • 43-1156
  • Application for revival of corporate powers
  • 43-1157
  • Clearance of revivor by corporation commission
  • 43-1158
  • Treatment of installment obligations on cessation of corporate activities
Article 6Credits
  • 43-1162
  • Healthy forest production tax credit; definitions
  • 43-1163
  • Affordable housing tax credit
  • 43-1164
  • Credit for solar energy devices; commercial and industrial applications
  • 43-1164.03
  • Renewable energy production tax credit; definitions
  • 43-1164.05
  • Credit for renewable energy investment and production for self-consumption by international operations centers; definitions
  • 43-1165
  • Credit for motion picture production costs; qualifications; data maintenance; rules; definitions
  • 43-1167.01
  • Credit for employing national guard members
  • 43-1168
  • Credit for increased research activity
  • 43-1170
  • Credit for pollution control equipment
  • 43-1175
  • Credit for employment of temporary assistance for needy families recipients
  • 43-1178
  • Credit for taxes with respect to coal consumed in generating electrical power
  • 43-1181
  • Credit for donation of school site
  • 43-1183
  • Credit for contributions to school tuition organization
  • 43-1184
  • Credit for contributions to school tuition organization; displaced students; students with disabilities
Chapter 12
TAX EXEMPT ORGANIZATIONS
Sec: 43-1201-43-1242
Article 1Organizations Exempt from Tax
  • 43-1201
  • Organizations exempt from tax
  • 43-1202
  • Feeder organizations not exempt from tax; definition
Article 2Denial of Exempt Status
  • 43-1212
  • Denial of exempt status due to prohibited transactions; restoration of exempt status
Article 3Taxation of Unrelated Business Income of Certain Tax Exempt Organizations
  • 43-1231
  • Taxation of unrelated business income
Article 4Returns of Exempt Organizations
  • 43-1241
  • Returns of unrelated business income
  • 43-1242
  • Information returns of tax-exempt organizations; definition
Chapter 13
ESTATES AND TRUSTS
Sec: 43-1301-43-1382
Article 1Definitions
  • 43-1301
  • Definitions; estates and trusts
Article 2Imposition of Tax Upon Estates and Trusts
  • 43-1311
  • Tax imposed on estates and trusts; rates; annual adjustment
  • 43-1314
  • Charge for estate or trust taxes upon estate or trust
  • 43-1315
  • Liability of beneficiaries for trust taxes
Article 3Adjustments to Arizona Gross Income
  • 43-1331
  • Additions to Arizona gross income; estates and trusts
  • 43-1332
  • Subtractions from Arizona gross income; estates and trusts
  • 43-1333
  • Fiduciary adjustment; allocation of shares
Article 5Liability of Fiduciary
  • 43-1361
  • Certificate of payment of taxes
  • 43-1364
  • Liability of fiduciary for nonpayment of estate or trust taxes
  • 43-1365
  • Request for prompt assessment
  • 43-1366
  • Notice of fiduciary relationship
Article 6Credits
  • 43-1381
  • Credit for taxes paid to other state or country
  • 43-1382
  • Credit for entity-level income tax
Chapter 14
PARTNERSHIPS
Sec: 43-1401-43-1414
Article 1Definitions
Article 2Taxation of Partnerships
  • 43-1411
  • Partnership, individual partnership liability
  • 43-1412
  • Partner's distributive share
  • 43-1413
  • Year in which partnership income is includible
  • 43-1414
  • Federal assessment of imputed underpayment; definitions
Chapter 15
SCHOOL TUITION ORGANIZATIONS FOR CORPORATE CONTRIBUTIONS
Sec: 43-1501-43-1507
Article 1General Provisions
  • 43-1502
  • Certification as a school tuition organization
  • 43-1503
  • Operational requirements for school tuition organizations
  • 43-1504
  • Special provisions; corporate donations for low-income scholarships; rules
  • 43-1505
  • Special provisions; corporate donations for displaced students and students with disabilities; definition
  • 43-1507
  • Audits and financial reviews
Chapter 16
SCHOOL TUITION ORGANIZATIONS FOR INDIVIDUAL CONTRIBUTIONS
Sec: 43-1601-43-1605
Article 1General Provisions
  • 43-1602
  • Certification as a school tuition organization
  • 43-1603
  • Operational requirements for school tuition organizations; notice; qualified schools
  • 43-1605
  • Audits and financial reviews
Chapter 17
SMALL BUSINESSES
Sec: 43-1701-43-1751
Article 1General Provisions
Article 2Tax Rates and Tables
Article 3Adjustments to Arizona Small Business Gross Income
  • 43-1721
  • Additions and subtractions to Arizona small business gross income
Article 4Deductions
Article 5Credits
  • 43-1741
  • Credit for income taxes paid to other states; definitions
  • 43-1742
  • Individual income tax credits; applicability
Article 6Nonresidents