House Engrossed

distributions; transportation projects; Pinal county

(now: income tax rebate; net revenues)

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2273

AN ACT

Distribution of income tax rebates.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Individual income tax rebate; eligibility; claim application; subtraction from Arizona gross income; appeal; memorandum of understanding; delayed repeal

A. The department of revenue shall issue a onetime individual income tax rebate to an Arizona taxpayer whose primary residence was located in Pinal county during taxable years 2018 through 2024 and who filed a full-year resident tax return for taxable year 2026.

B. If the taxpayer does not meet any of the requirements in subsection A of this section, the department of revenue shall conclude that the taxpayer does not meet the criteria to be issued a rebate under this section.

C. One rebate will be issued for each full-year resident tax return for taxable year 2026 who qualifies under subsection A of this section in the amount of $300. The primary taxpayer's taxpayer identification number as reported on the taxpayer's full-year resident tax return for taxable year 2026 shall be used as needed in subsection A of this section for matching and verification purposes.

D. If a qualifying taxpayer is deceased, the taxpayer's surviving spouse, personal representative or executor or another official representative of the estate designated pursuant to applicable state law may receive the rebate for the deceased taxpayer.

E. The department of revenue shall pay all rebates issued pursuant to this section on or before November 15, 2027, but not earlier than October 15, 2027. The department shall attempt to pay a qualifying taxpayer's rebate by electronic funds transfer using the routing and account information provided by the taxpayer on the taxpayer's full-year resident tax return for taxable year 2026 or more recent routing and account information provided by the taxpayer. If such attempt fails, or if the taxpayer did not provide such routing and account information, the department shall issue the rebate check by mail to the most recent home address provided by the taxpayer.

F. A taxpayer who does not receive the rebate issued pursuant to this section on or before November 15, 2027 may claim the rebate by filing a claim application online in the form and manner prescribed by the department of revenue. The claim application must include the claimant's name, address, taxpayer identification number and individual income tax filing status. The department shall review each claim application and verify the information provided. The department may request that a claimant provide evidence to verify the claimant's eligibility for the rebate.

G. In computing Arizona adjusted gross income, any rebate received by a taxpayer pursuant to this section and required to be included in Arizona gross income under the internal revenue code shall be subtracted from the taxpayer's Arizona gross income.

H. Notwithstanding any other administrative proceedings established by law or by rule, all appealable agency actions as defined in section 41-1092, Arizona Revised Statutes, and contested cases as defined in section 41-1001, Arizona Revised Statutes, relating to a rebate issued pursuant to this section are governed by title 41, chapter 6, article 10, Arizona Revised Statutes.

I. The department of revenue shall enter into a memorandum of understanding with Pinal county and the Pinal regional transportation authority to pay the rebates allowed under this section from the monies, including the interest earned on those monies, remaining in the escrow account in which the monies are being held.

J. This section is repealed from and after December 31, 2032.