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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
tax payments; electronic funds transfer
Purpose
Specifies that a taxpayer's electronic payment is deemed to have been made at the date and time the taxpayer successfully authorizes an electronic funds transfer (EFT) from the taxpayer's financial institution to the Arizona Department of Revenue (ADOR).
Background
Statute authorizes ADOR to require, by rule, certain taxes to be paid on or before the payment date in monies that are immediately available to ADOR on the date of the EFT. The taxpayer must furnish evidence to ADOR that the EFT was remitted on or before the due date. If a tax due date falls on a Saturday, Sunday or legal holiday the deposit by an EFT must be made by 5:00 p.m. on the next banking day. A failure to make a timely payment in immediately available monies is subject to a civil penalty of 0.5 percent for each month during which the failure continues, up to a maximum of 10 percent (A.R.S §§ 42-1125 and 42-1129; A.A.C. R15-10-307; ADOR).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Deems a taxpayer's electronic payment as submitted at the date and time the taxpayer successfully authorizes the EFT from the taxpayer's financial institution to ADOR, as evidenced by an electronic payment confirmation issued by:
a) ADOR;
b) the taxpayer's financial institution; or
c) a vender certified by ADOR.
2. Authorizes ADOR, through December 31, 2024, to abate any late payment penalties, if the taxpayer provides reasonable evidence from the taxpayer's financial institution or ADOR of a successful and timely authorization of the taxpayer's EFT.
3. Exempts ADOR from rulemaking requirements for one year.
4. Becomes effective on the general effective date.
House Action
WM 2/14/24 DP 10-0-0-0
3rd Read 2/22/24 58-0-1-0-1
Prepared by Senate Research
March 7, 2024
MG/JC/cs