PREFILED JAN 09 2015
REFERENCE TITLE: online TPT; income tax reduction
State of Arizona
House of Representatives
First Regular Session
amending title 43, chapter 10, article 2, Arizona Revised Statutes, by adding section 43-1013; relating to taxation.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 43, chapter 10, article 2, Arizona Revised Statutes, is amended by adding section 43-1013, to read:
43-1013. Income tax rate reduction for transaction privilege and use taxes on internet sales; definition
A. The department shall determine the amount of additional revenue collected during the first full taxable year following the date that the department begins collecting, as a result of a qualifying federal law, transaction privilege and use taxes from out‑of‑state retailers on purchases made by residents of this state.
B. After the department makes the determination under subsection a of this section, the department shall determine the amount that individual income taxes may be reduced in the following taxable year in order to decrease individual income tax revenue by the amount determined under subsection A of this section. For the purposes of this subsection, the department shall calculate the tax rate reductions in proportion to the share of gross tax attributable to each of the tax brackets prescribed in section 43‑1011 in effect during the most recently completed taxable year.
C. The department shall certify the determinations made under subsections A and B of this section to the governor, the speaker of the house of representatives and the president of the senate and shall specify in the certification that the new tax rates take effect in the taxable year following the taxable year during which the department makes the certification.
D. For the purposes of this section, "qualifying federal law" means any federal law to expand this state's authority to require out‑of‑state retailers to collect and remit to this state transaction privilege and use taxes on purchases made by residents of this state.
Sec. 2. Intent
It is the intent of the legislature that this act not be viewed as legislative support for or opposition to the Marketplace Fairness Act or similar federal law.