ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: WM DP 8-0-0-1

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2373: income tax; refunds; veterans' organizations

Sponsor: Representative Travers, LD 12

Caucus & COW

Overview

Requires the Department of Revenue (DOR) to provide a space on the individual income tax return form in which taxpayer may designate a part of the taxpayer's refund as a voluntary contribution to the veteran's donations fund for the deposit of monies received for contribution to veterans' service organization fund.

History

The veterans' donations fund was established in 1999 to fund programs to benefit families across Arizona the fund consists of monies, gifts and contributions donated to the Department of Veterans Services (DVS). DVS is required to administer the fund. (A.R.S. § 41-608).

Provisions

1.   Requires the DVS to establish a separate subaccount in the Veterans' Donations Fund for the deposit from the individual income tax contribution. (Sec. 1)

2.   Requires DVS to annually allocate monies from the subaccount to a veterans' service organization that are qualified under the internal revenue code for federal income tax purposes. (Sec. 1)

3.   Requires Department of Revenue (DOR) to provide a space on the individual income tax return form where a taxpayer can designate an amount of the taxpayer's refund as a voluntary contribution to the veteran's donations fund. (Sec. 2)

4.   Requires DOR to subtract the designated setoff for debts to state agencies, political subdivisions and courts prior to transferring any donations to DVS for depositing in the Veterans' Donations Fund. (Sec. 2)

5.   Requires DOR to determine the initial administrative cost and report that amount to DVS. DVS is required to transfer that amount to the state general fund. (Sec. 2)

6.   Allows a taxpayer to also donate any amount to the veterans' donation fund to be allocated to a veterans' service organization by an appropriate indication on the return and by including that amount with the return. (Sec. 2)

7.   Applies to taxable years beginning January 1, 2027. (Sec. 3)

8.   Makes technical and conforming changes. (Sec.1)

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12.  Initials VP/CS                 HB 2373

13.  2/18/2026  Page 0 Caucus & Cow

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