REVISED
ARIZONA STATE SENATE
RESEARCH STAFF
MOLLY GRAVER |
LEGISLATIVE RESEARCH ANALYST FINANCE COMMITTEE Telephone: (602) 926-3171 |
TO: MEMBERS OF THE SENATE
FINANCE COMMITTEE
DATE: February 10, 2021
SUBJECT: Strike everything amendment to S.B. 1252, relating to corporate income tax; subtraction
Purpose
Requires, for taxable years beginning January 1, 2022, a corporation's first $100,000 of Arizona gross income to be subtracted from Arizona gross income when computing a corporation's Arizona taxable income.
Background
The corporate income tax is levied on corporations that engage in business within Arizona. Arizona gross income for a corporation is the same as the corporation's federal taxable income for the taxable year. Current statute authorizes various amounts to be added or subtracted when computing a corporation's Arizona taxable income (A.R.S. §§ 43-1101; 43-1121; and 43-1122).
The strike-everything amendment to S.B. 1252 requires a corporation to subtract the first $100,00 of Arizona gross income when computing the corporation's Arizona taxable income which may lead to a fiscal impact to the state General Fund.
Provisions
1. Requires, for taxable years beginning January 1, 2022, a corporation's first $100,000 of Arizona gross income to be subtracted from Arizona gross income when computing a corporation's Arizona taxable income.
2. Becomes effective on the general effective date.
Revisions
· Corrects the date in the provisions.