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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: WM DPA 5-4-0-0 |
HB4029: income tax changes; notification; forms
Sponsor: Representative Olson, LD 10
Caucus & COW
Overview
Requires the Governor's Office of Strategic Planning and Budgeting (OSPB) and the Joint Legislative Budget Committee (JLBC) to evaluate and determine how conforming the laws of Arizona will affect the income tax revenues. Prohibits the Department of Revenue (DOR) from prescribing forms inconsistent with the statutes that are in effect on the date that the forms are issued.
History
The Arizona Legislature historically updates the statutory definition of the U.S. Internal Revenue Code (IRC) to include any federal provisions that became effective in the preceding calendar year as a means of paralleling the computation of Arizona income tax and other statutory references throughout the Arizona Revised Statutes to the amended IRC. Tax conformity with the IRC is deemed necessary because the calculation of Arizona corporate income tax liability begins with federal taxable income. Similarly, federal adjusted gross income is the starting point for individual income tax assessment.
The Arizona Department of Revenue (DOR) is required to prepare and submit to the legislature a report containing a summary of all the revisions made to the internal revenue code during the preceding calendar year on or before January 10 of each year. (A.R.S. § 42-1005.A.5)
Provisions
1. Requires the OSPB and the JLBC to evaluate and determine if conforming the laws of this state with changes made to the Internal Revenue Code (IRC) for calculating federal adjusted gross income for the purposes of calculating taxable income in this state will result in an increase or decrease of income tax revenues of $100 million or more compared to the amount of income tax revenues that would be collected if the laws of this state did not conform to the internal revenue code changes. (Sec. 1)
2. Requires the governor to determine if a special session of the legislature is necessary before September 30 of each year, to conform the laws of this state to the changes in the IRC and will notify in writing to the President of the Senate and the Speaker of the House of Representatives of that determination and the reasons that support the determination. (Sec. 1)
3. Prohibits DOR from prescribing forms for returns that are inconsistent with the statutes that are in effect on the date that the forms are issued. (Sec. 3)
Amendments
Committee on Ways & Means
1. Changes the evaluation and determination of income tax law to be doe individually by the OSPB and JLBC and if either shows an increase or decrease of a $100 million or more, the governor is required to determine if a special session is needed for the Legislature. (Sec. 1)
2. Adds that the DOR must submit an initial report containing a summary of all the revisions made to the internal revenue code during the preceding year by September 30 of each year and must submit a final report by January 10 of each year to the Legislature. (Sec. 2)
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Initials VP/CS HB 4029
2/11/2026 Page 0 Caucus & COW
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