Budget & Tax Committee
52nd Legislature - 1st Regular Session, 2015 Monday, Jun 26 2017 6:57 PM

BILL NUMBER/
SHORT TITLE
SUMMARY SPONSORS POSTED HEARINGS
& CALENDARS
COMMENTS LAST ACTION
H2001 (Chapter 91):
INCOME TAX BRACKETS; INFLATION INDEX  
For each tax year beginning with 2016, the Department of Revenue is required to adjust the income dollar amounts for each individual income tax rate bracket by the average annual change in the metropolitan Phoenix consumer price index. The revised dollar amounts must be raised to the nearest whole dollar and cannot be revised below the amounts prescribed in the prior tax year. AS SIGNED BY GOVERNOR. First sponsor: Rep. Olson   General Comments (all lists):

01/02/2015 Added to BT List

02/02/2015 Reviewed by BT Committee

01/30/2015 Public Affairs formally adopts SUPPORT position


3/30
signed by governor. Chap. 91, Laws 2015.
H2011:
TECH CORRECTION; SMITH-LEVER ACT  
Minor change in Title 3 (Agriculture) related to the Smith-Lever Act. Apparent striker bus. First sponsor: Rep. Shope   General Comments (all lists):

02/13/2015 Added to BT List (strike everything)

S/E - Increases the Angel Investment Tax Credit from $20 to $25M


2/18
from House rural-econ with amend #4281.
H2060:
STATE BUDGET; CONSENSUS FORECAST  
On March 1, September 1 and December 1 of each year, the Directors of the Joint Legislative Budget Committee and the Governor's Office of Strategic Planning and Budgeting are required to jointly compile a consensus revenue forecast for the current fiscal year and the next three fiscal years. The consensus revenue forecast must consist of specified information and must be transmitted to the Governor and the Legislature. Revenue estimates in the annual budget submitted to the Legislature by the Governor and in the general appropriation act are required to be based on the most recent consensus revenue forecast. First sponsor: Rep. Mesnard   General Comments (all lists):

01/02/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


2/16
from House rules okay. To House consent calendar.
H2061:
ONLINE TPT; INCOME TAX REDUCTION  
The Department of Revenue is required to determine the amount of additional revenue collected during the first full taxable year following the date the Dept begins collecting, as a result of a "qualifying federal law" (defined), transaction privilege and use taxes from out-of-state retailers on purchases made by Arizona residents. After the Dept makes this determination, the Dept is required to determine the amount that individual income taxes may be reduced in the following tax year in order to decrease individual income tax revenue by the amount of TPT collected. The Dept must certify these determinations to the Governor and the Legislature and must specify in the certification that the new tax rates take effect in the following tax year. First sponsor: Rep. Mesnard   General Comments (all lists):

01/02/2015 Added to BT List

02/02/2015 Reviewed by BT Committee

 


2/10
FAILED to pass House 27-30. House voted to reconsider failure to pass bill. Second vote scheduled for 2/12.
H2062 (Chapter 199):
CONFIDENTIAL TAX INFORMATION; TAX CREDITS  
For the purposes of the Joint Legislative Income Tax Credit Review Committee, legislative staff is added to the list of persons to whom the Department of Revenue may disclose statistical information gathered from confidential tax information. AS SIGNED BY GOVERNOR. First sponsor: Rep. Mesnard   General Comments (all lists):

01/12/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


4/6
signed by governor. Chap. 199, Laws 2015.
H2066 (Chapter 47):
PUBLIC SCHOOL TAX CREDIT: TESTING  
Cash contributions to a public school for the purpose of an income tax credit may be used for the support of “standardized testing for college credit or readiness” offered by a “widely recognized and accepted educational testing organization” (both defined), for the career and technical education industry certification assessment or for preparation courses and materials for standardized testing, in addition to extracurricular activities or character education programs. Retroactive to tax years beginning January 1, 2015. AS SIGNED BY GOVERNOR. First sponsor: Rep. Mesnard   General Comments (all lists):

01/13/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


3/23
signed by governor. Chap. 47, Laws 2015.
H2069:
ONLINE TPT; INCOME TAX DEDUCTION  
The Department of Revenue is required to estimate the amount of additional revenue collected during the first full taxable year following the date the Dept begins collecting, as a result of a "qualifying federal law" (defined), transaction privilege and use taxes from out-of-state retailers on purchases made by Arizona residents. After the Dept makes its estimate, the Dept is required to determine the amount that individual income taxes may be reduced in the following tax year in order to decrease individual income tax revenue by the amount of the estimate. The Dept must certify these amounts to the Governor and the Legislature and must specify in the certification that the new tax rates take effect in the following tax year. AS PASSED HOUSE. First sponsor: Rep. Mesnard   General Comments (all lists):

02/13/2015 Added to BT List (strike everything) reducing individual income tax rates in order to offset increased revenues received from online sales tax that is result of congressional action

 


3/19
from Senate fin with amend #4926.
H2079:
LOCAL BONDING; PROPERTY TAX MEASURE  
For an election to authorize bond indebtedness for a political subdivision, all election materials prepared, issued or used by the political subdivision are required to use the words “property tax measure” to describe the bond question. First sponsor: Rep. Petersen
Others: Rep. Fann, Rep. Mitchell
  General Comments (all lists):

01/13/2015 Added to BT List

02/02/2015 BT Committee recommends SUPPORT

02/13/2015 PA approves SUPPORT position


3/12
FAILED to pass Senate 15-13.
H2083:
INCOME TAX REVISIONS  
Various changes relating to income taxes. For tax years beginning with 2016, the Department of Revenue (DOR) is required to adjust the income dollar amounts for each individual income tax rate bracket by the average annual change in the metropolitan Phoenix consumer price index. The revised dollar amounts must be raised to the nearest whole dollar and cannot be revised below the amounts prescribed in the prior tax year. A taxpayer is permitted to take an expense deduction for property placed in service in tax years beginning with 2015, in the amount that would be allowed under the Internal Revenue Code as it existed on December 31, 2014 minus any amount actually allowed under the Internal Revenue Code in determining federal taxable income. A taxpayer is also permitted to take an expense deduction for "qualified property" (defined) that is placed in service in tax years beginning with 2015, in an amount allowed under the Internal Revenue Code as it existed on December 31, 2014 minus any amounts actually allowed under the Internal Revenue Code in determining federal taxable income. Establishes additions to Arizona gross income to avoid a double deduction if a taxpayer uses these expensing provisions. The lists of additions to and subtractions from Arizona gross income are modified to delete obsolete calculations. DOR is required to mail a notice for additional tax due regarding individual income tax adjustments that are not "based on federal information" (defined) within three years, decreased from four years, after the report or return is filed or required to be filed, whichever is later. For individual income tax changes or corrections based on federal information, DOR may conduct an audit after an assessment has been issued within that same time period, and the audit must be limited to changes based on federal information. Some provisions are retroactive to tax years beginning January 1, 2015. AS PASSED HOUSE. First sponsor: Rep. Mesnard   General Comments (all lists):

01/14/2015 Added to BT List

02/02/2015 BT Committee Recommends MONITORING


3/11
from Senate fin with amend #4825.
H2108 (Chapter 233):
PROPERTY TAX; CLASS NINE; CONVENTIONS  
The class 9 property tax classification is modified to include improvements located on federal, state, county or municipal property and owned by the lessee of the property if the improvements become the property of the government on termination of the leasehold interest in the property and if both the improvements and the property are used exclusively, instead of primarily, for convention activities. AS SIGNED BY GOVERNOR. First sponsor: Rep. Mitchell
Others: Rep. Fann
  General Comments (all lists):

01/14/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


4/9
signed by governor. Chap. 233, Laws 2015.
H2109 (Chapter 48):
BALLOT; FORM; SECONDARY PROPERTY TAXES  
If political subdivision bonds are to be repaid with secondary property taxes, the ballot must contain the words “bond approval, yes” and “bond approval, no” and a statement that a “yes” vote will authorize the governing body to issue and sell the specified amount and type of bonds of the district to be repaid with secondary property taxes and that a “no” vote will not authorize the governing body to issue and sell the bonds. AS SIGNED BY GOVERNOR. First sponsor: Rep. Mitchell
Others: Rep. Fann
  General Comments (all lists):

01/14/2015 Added to BT List

02/02/2015 BT Committee recommends SUPPORT

02/13/2015 PA approves SUPPORT position


3/23
signed by governor. Chap. 48, Laws 2015.
H2110 (Chapter 98):
TAXING DISTRICT BOUNDARIES; DEADLINE EXTENSIONS  
The Department of Revenue may extend the deadline for municipal, school district, community college district and other special taxing district governing bodies to file information relating to changes in boundaries and the boundaries of newly created taxing jurisdictions to December 20 of the year preceding the year in which assessments or taxes are to be levied, instead of to February 15 of the year in which the assessments or taxes are to be levied. The governing body must request the extension by November 30, instead of by December 31, of the year preceding. (Capitol Reports Note: The regular deadline for filing is November 1 of the year preceding.) AS SIGNED BY GOVERNOR. First sponsor: Rep. Mitchell   General Comments (all lists):

01/15/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


3/30
signed by governor. Chap. 98, Laws 2015.
H2128 (Chapter 49):
LEASED RELIGIOUS PROPERTY; CLASS NINE  
Property, buildings and fixtures, or any portion thereof, that are leased to a nonprofit church, religious assembly or religious institution and that are primarily used for religious worship are classified as class 9 property for property tax purposes. The church, religious assembly or institution must annually file with the county assessor an affidavit with specified information in order to qualify for this classification. Property, buildings and fixtures owned by an educational, religious or charitable organization that are leased to a nonprofit church, religious assembly or institution and used primarily for religious worship are exempt from taxation. AS SIGNED BY GOVERNOR. First sponsor: Rep. Mitchell
Others: Rep. J. Allen, Sen. S. Allen, Sen. Barto, Rep. Fann, Sen. D. Farnsworth, Rep. Finchem, Rep. Gray, Rep. Kern, Rep. Leach, Sen. Lesko, Rep. Livingston, Rep. Mesnard, Rep. Petersen, Sen. Smith, Rep. Thorpe, Sen. Yee
  General Comments (all lists):

01/15/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


3/23
signed by governor. Chap. 49, Laws 2015. message
H2129 (Chapter 24):
MUNICIPAL TAX CODE COMMISSION; CONTINUATION  
The statutory life of the Municipal Tax Code Commission is extended eight years to July 1, 2023. Retroactive to July 1, 2015. AS SIGNED BY GOVERNOR. First sponsor: Rep. Mitchell   General Comments (all lists):

01/15/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


3/17
signed by governor. Chap. 24, Laws 2015.
H2130 (Chapter 25):
STATE TAX APPEALS BOARD; CONTINUATION  
The statutory life of the State Board of Tax Appeals is extended eight years to July 1, 2023. Retroactive to July 1, 2015. AS SIGNED BY GOVERNOR. First sponsor: Rep. Mitchell   General Comments (all lists):

01/015/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


3/17
signed by governor. Chap. 25, Laws 2015.
H2131 (Chapter 234):
TAX ADJUDICATIONS; ATTORNEY FEES  
The court is permitted to award fees and other expenses to any "party" (defined) other than the state or a county or municipality that prevails by an adjudication on the merits in an action brought by that party against the state or a county or municipality challenging the refund of taxes or the denial of a tax refund. The maximum amount of attorney fees that may be awarded is increased to $350 per hour, from $175 per hour, and the maximum amount of fees awarded against the state or a county or municipality is increased to $75,000, from $30,000, for fees incurred at each level of judicial appeal. For each calendar year beginning with 2016, the maximum dollar amounts for awards of fees and expenses must be adjusted by the Attorney General according to the average annual change in the metropolitan Phoenix Consumer Price Index. The revised amounts must be raised to the nearest whole dollar and cannot be revised below the amounts prescribed in the prior year. AS SIGNED BY GOVERNOR. First sponsor: Rep. Mitchell   General Comments (all lists):

01/15/2015 Added to BT List

02/02/2015 BT Committee recommends SUPPORT

02/13/2015 PA approves SUPPORT position


4/9
signed by governor. Chap. 234, Laws 2015.
H2147 (Chapter 72):
MUNICIPAL TAX; POLE ATTACHMENT  
The list of items exempt from the utilities, telecommunications, commercial lease and personal property rental classifications of transaction privilege taxes is expanded to include the leasing or renting of space to make attachments to “utility poles” (defined) by or to a person engaged in business under the utilities or telecommunications classifications or to a person that is a “cable operator” (defined elsewhere in statute). The list of items that municipalities are prohibited from levying a transaction privilege tax or other similar tax on is expanded to include the charges for leasing or renting of space to make attachments to utility poles by or to a person engaged in business under those classifications or that is a "cable operator" (defined elsewhere in statute). Retroactive to January 1, 2015, for the purpose of the prime contracting classification of transaction privilege tax, the definition of “replacement” is modified to specify that the current definition applies regardless of whether the existing component or system or existing tangible personal property is physically removed from the existing property. AS SIGNED BY GOVERNOR. First sponsor: Rep. Olson
Others: Sen. Lesko, Rep. Mitchell, Sen. Shooter
  General Comments (all lists):

01/15/2015 Added to BT List

02/02/2015 BT Committee recommends SUPPORT

02/13/2015 PA approves SUPPORT position


3/26
signed by governor. Chap. 72, Laws 2015.
H2152:
STOS; LUXURY TAX CREDITS  
Establishes a luxury tax credit for contributions to a school tuition organization (STO) for the purposes of scholarships for low-income students and a luxury tax credit for contributions to an STO for the purposes of scholarships for displaced students and students with disabilities. The procedures, conditions, limitations, definitions and other requirements of the corporate income tax credit for contributions to school tuition organizations apply to these credits. The amount of each credit is the total amount of the taxpayer’s voluntary cash contributions. If the allowable amount of a credit exceeds taxes due, the amount of the claim not used to offset tax liability may be carried forward for up to five consecutive tax years. Taxpayers cannot claim this credit and the corporate income tax credit with respect to the same contribution. First sponsor: Rep. Olson   General Comments (all lists):

01/15/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


2/23
FAILED to pass House 29-29. House voted to reconsider failure to pass bill. Second vote scheduled for 2/25.
H2153 (Chapter 301):
TAX CREDITS; STOS; PREAPPROVAL; ENTITIES  
Establishes an individual income tax credit for the pro rata amount of contributions made by an S corporation to school tuition organizations (STO) if the aggregate contribution in the taxable year is at least $5,000. Co-owners of the S corporation are permitted to each claim the pro rata share of the corporate income tax credit allowed based on the taxpayer's ownership interest. The total of the credits allowed by all the owners is prohibited from exceeding the amount that would have been allowed a sole owner of the corporation. If the credit exceeds taxes due, the taxpayer is permitted to carry the amount of the claim not used to offset taxes forward for up to five consecutive tax years. The tax credit is not allowed if the S corporation or a shareholder designates the contribution to an STO for the direct benefit of any dependent of a shareholder or designates a student beneficiary as a condition of the contribution to an STO. Retroactive to tax years beginning January 1, 2015. AS SIGNED BY GOVERNOR. First sponsor: Rep. Olson   General Comments (all lists):

01/015/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


4/10
signed by governor. Chap. 301, Laws 2015.
H2173:
LEGAL TENDER; SPECIE  
Legal tender in Arizona would have consisted of legal tender authorized by Congress, specie coin issued by the U.S. government, and any other "specie" (defined as coin or bullion having gold or silver content) that a court of competent jurisdiction rules to be within the scope of state authority to make a legal tender. A person would have been prohibited from compelling another person to tender or accept specie legal tender, except as expressly provided by contract. The exchange of one form of legal tender for another would not have given rise to liability for any type of tax. Legal tender would have been declared to be money and not subject to taxation or regulation as property other than money. The Attorney General would have been required to enforce this legislation and to intervene in any legal action to preserve and protect the state's monetary authority. Would have become effective from and after 90 days after the 52nd Legislature, 2nd Regular Session adjourns sine die. AS VETOED BY GOVERNOR. In his veto message, the Governor stated that he does not believe this policy is appropriate at this time. First sponsor: Rep. Finchem
Others: Rep. Barton, Rep. Cobb, Rep. Leach, Rep. Livingston, Sen. Smith, Rep. Thorpe
  General Comments (all lists):

01/015/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


4/1
VETOED message.
H2176:
NONENUMERATED FEDERAL LAND; RELINQUISHMENT  
The Attorney General would have been required to annually request the U.S. to relinquish all "constitutionally nonenumerated federal land" (defined) within Arizona to Arizona by December 31, 2021. Beginning January 1, 2022, subject to legislative appropriation, the Attorney General would have been authorized to initiate proceedings against the U.S. in order to force the relinquishment of all remaining constitutionally nonenumerated federal land within Arizona to Arizona. Would not have applied to property meeting specified conditions. Also would have authorized the Attorney General to initiate proceedings in state or federal court. Contained legislative findings. AS VETOED BY GOVERNOR. In his veto message, the Governor stated that he shares concerns about the amount of federal land in Arizona, which is why he signed legislation establishing a study committee on that topic, and expressed a desire to review the committee's recommendations before making further decisions. First sponsor: Rep. Thorpe
Others: Rep. J. Allen, Rep. Borrelli, Rep. Finchem, Rep. Livingston, Rep. Petersen, Rep. Townsend
  General Comments (all lists):

01/28/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


4/13
VETOED message.
H2198:
PUBLIC SCHOOLS; TAX CREDIT  
Expands the purposes for which schools may use monies from income tax credit for cash contributions to public schools to include curriculum and materials for science, technology, engineering, arts and mathematics programs. First sponsor: Rep. Sherwood
Others: Rep. Friese
  General Comments (all lists):

01/28/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


1/29
referred to House ways-means.
H2251:
CORPORATE TAX CREDITS; ANNUAL REPORT  
Beginning January 1, 2016, the Department of Revenue is required to annually report to the Governor and the Legislature specified information on corporate tax credits for any corporation that claims aggregate credits in any taxable year of $5,000 or more. The Dept is authorized to disclose confidential taxpayer information for this purpose. First sponsor: Rep. Mitchell
Others: Rep. J. Allen, Rep. Borrelli, Rep. Fann, Rep. Fernandez, Rep. Finchem, Rep. Friese, Rep. Gabaldon, Rep. Kern, Rep. Mach, Rep. Mesnard, Rep. Olson, Rep. Otondo, Rep. Petersen, Rep. Shope, Rep. Thorpe
  General Comments (all lists):

01/26/2015 WR Reviewed

02/02/2015 BT Recommends OPPOSING

02/13/2015 PA approves OPPOSE position


1/28
referred to House ways-means.
H2252:
TAX; DELINQUENCY DATES; TAX LIENS  
The date on which unpaid property taxes become delinquent is moved to December 31, from November 1. The county treasurer is permitted, instead of required, to notify the purchaser of a tax lien of a pending expiration at least six months, increased from 30 days, before the expiration date. Tax liens that are assigned to the state do not expire unless the lien is resold. First sponsor: Rep. Mitchell
Others: Rep. Cardenas, Rep. Coleman, Rep. Finchem, Rep. Kern, Rep. Lawrence, Rep. Leach, Rep. Montenegro, Rep. Townsend
  General Comments (all lists):

01/16/2015 Added to BT List

02/02/2015 BT Recommends OPPOSING

02/13/2015 PA proposed NEUTRAL position conditional on amendment. Otherwise OPPOSE


2/16
House ways-means held.
H2253:
PROPERTY TAX ASSESSMENTS; ONE-YEAR CYCLE  
Numerous changes relating to property tax assessment processes in order to establish a single-year property tax cycle instead of an 18 month property tax cycle. Modifies the definition of “valuation date” to mean January 1 of the year in which taxes are levied for property valued by the county assessor. Various deadlines relating to the property tax valuation process are modified. Repeals sections of statute regulating valuation in the case of new construction. The Department of Revenue is required to conduct sales-ratio studies and issue equalization orders to the county assessor for areas identified as inconsistent with the valuation directives, rules and guidelines issued by the Dept. Changes to sections of statute related to the valuation of assessed property become effective January 1, 2017. Changes to sections of statute related to the assessment process become effective January 1, 2018. AS PASSED HOUSE. First sponsor: Rep. Mitchell   General Comments (all lists):

01/16/2015 Added to BT List

02/02/2015 BT Recommends OPPOSING

02/13/2015 PA approves OPPOSE position


3/18
Senate fin held.
H2264:
TPT EXEMPTION; SCHOOL PURCHASES  
The lists of exemptions from the retail classification of transaction privilege and use taxes are expanded to include tangible personal property sold to a school district or to a public or private elementary or secondary school for use by the district or school. First sponsor: Rep. Bowers   General Comments (all lists):

01/16/2015 Added to BT List

02/02/2015 BT Recommends Monitoring


1/22
referred to House ways-means, appro.
H2321:
PUBLIC LANDS; CONVEYANCE AND TAXATION  
By December 31, 2016, the state of Arizona demands that the United States extinguish title to all public lands in and transfer title to the state of Arizona. Does not apply to property that meets specified conditions. The Public Lands Board of Review is required to recommend legislation establishing a commission to administer the disposal of public lands and establishing the process for the state to receive title to public lands from the U.S. The Board is required to reports its findings to the Governor and the Legislature by November 30, 2020. AS PASSED HOUSE. First sponsor: Rep. Barton
Others: Rep. Thorpe
  General Comments (all lists):

01/15/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


3/17
from Senate rural-env do pass.
H2325 (Chapter 242):
MEMBER LAND; TERMINATION  
Real property previously accepted as member land under the Central Arizona Groundwater Replenishment District terminates its member land status only if all of a list of specified conditions apply, including that no lot or parcel of subdivided land within the property has been sold or leased to a "retail purchaser or lessee" (defined), that the State Real Estate Commissioner has not issued a public report for the property, that the planning agency with authority over the property has approved a plat vacating the lot or parcel boundaries that were previously recorded, that the property owners record a declaration that has been executed by the District and the Director of the Department of Water Resources (DWR) that declares that the covenants and restrictions previously recorded are revoked, and that DWR has revoked any certificate of assured water supply. AS SIGNED BY GOVERNOR. First sponsor: Rep. Mesnard   General Comments (all lists):

01/15/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


4/9
signed by governor. Chap. 242, Laws 2015.
H2326:
COMPACT; BALANCED BUDGET; CONVENTION  
Enacts a compact declaring the state's intent to originate a balanced budget amendment to the U.S. Constitution. The compact becomes binding when at least one other state has adopted substantively identical legislation. Contains a model of the proposed balanced budget amendment, which prohibits total outlays of the government of the U.S. from exceeding total receipts at any point in time unless the excess is financed by debt that is first approved by the legislatures of the several states. The amendment also requires any bill that provides for a new or increased general revenue tax to be approved by a 2/3 roll call vote of the whole number of each House of Congress, with the exception of either a new end user sales tax that would completely replace every existing income tax or the reduction or elimination of an exemption, deduction or credit. Once at least 3/4 of the states adopt the compact, the legislatures of each member state applies to Congress for a convention for proposing the balanced budget amendment. Provides for the appointment of convention delegates and specifies convention rules. Upon referral of the amendment to the states, each member state hereby adopts and ratifies the amendment. Contains provisions for construction, enforcement, venue and severability of the compact. AS PASSED HOUSE. First sponsor: Rep. Mesnard
Others: Rep. J. Allen, Sen. Barto, Rep. Barton, Rep. Campbell, Rep. Coleman, Rep. Fann, Rep. Finchem, Rep. Kern, Rep. Leach, Sen. Lesko, Rep. Livingston, Rep. Lovas, Rep. Mitchell, Rep. Montenegro, Rep. Petersen, Sen. Smith, Rep. Thorpe, Rep. Townsend, Sen. Ward, Rep. Weninger
  General Comments (all lists):

01/15/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


4/3
referred to Senate rules only.
H2328:
TPT; HOST FACILITY; SPORTING EVENT  
The State Treasurer is required to pay from the transaction privilege tax distribution base a specified amount to the Office of Tourism for the sole benefit of the “host facility” of a “special sporting event” (both defined) where the cost of the event is at least $50 million. The amount to be paid is $1 million to $2 million, based on the total amount spent by the owner of the host facility on the special sporting event. The Office is required to use the monies for the promotion and marketing of the special sporting event and its host facility. First sponsor: Rep. Robson   General Comments (all lists):

01/15/2015 Added to BT List

02/02/2015 Reviewed by BT Committee

* Economic Development?


1/27
referred to House ways-means.
H2333:
TAX CREDIT; RESEARCH ACTIVITY; REFUND  
The maximum amount of income tax refunds for increased research activities that the Arizona Commerce Authority is authorized to approve each year is increased to $7.5 million in 2016, $10 million in 2017, $12.5 million in 2018 and $15 million in 2019 and after, increased from $5 million. During the first six months of a calendar year, the Authority cannot approve refunds exceeding 50 percent of the limit. During the second six months, the Authority may approve the remaining balance of the limit. Effective January 1, 2016. First sponsor: Rep. Fann
Others: Sen. Begay, Rep. Borrelli, Sen. Dial, Rep. Leach, Rep. Pratt, Sen. Shooter, Rep. Shope, Rep. Thorpe, Rep. Wheeler
  General Comments (all lists):

01/19/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


2/18
from House rural-econ do pass.
H2358:
TPT; EXEMPTION; CROP DUSTERS  
The list of deductions from the tax base for the retail classification of transaction privilege taxes and use taxes would have been expanded to include the gross proceeds of sales or gross income derived from sales of “agricultural aircraft,” defined as an aircraft built for agricultural use for the aerial application of pesticides or fertilizer or for aerial seeding, retroactive to taxable periods beginning April 18, 1985. Any claim for a refund based on the retroactive application of this deduction would have been required to be submitted to the Department of Revenue by December 31, 2015. The aggregate amount of the refunds issued under the retroactive application would have been capped at $10,000, and interest would not be allowed or compounded on any refundable amount if paid before July 1, 2016. These retroactive provisions would have been nonseverable. The list of deductions from the tax base for the retail classification of transaction privilege taxes and use taxes would have been expanded to include the gross proceeds of sales or gross income derived from aircraft and related equipment sold or leased to a person certificated or licensed under federal aviation regulations as a scheduled or unscheduled carrier of persons for hire and to be used to transport persons or property for hire in intrastate, interstate or foreign commerce (certain charter airlines), retroactive to taxable periods beginning June 1, 1998. Any claim for a refund based on the retroactive application of this deduction would have been required to be submitted to the Department of Revenue by December 31, 2015. If a refundable amount was not determined or paid until after June 30, 2016, interest would have accrued after that date. AS VETOED BY GOVERNOR. In his veto message, the Governor stated that while he supports tax policies that treat charter and commercial airline industries the same and provide tax relief for agricultural aircraft, he is concerned about the unknown financial impact of making the policies retroactive. He is requesting the Department of Revenue to stay any future and ongoing enforcement efforts of taxation on these types of aircraft, and he looks forward to reviewing an amended version of the bill next session. First sponsor: Rep. Shope
Others: Rep. Barton, Rep. Leach, Rep. Mitchell, Rep. Pratt, Sen. Smith, Rep. Townsend
  General Comments (all lists):

01/19/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


4/14
VETOED message.
H2380:
STATE BUDGET; ESTIMATES; PUBLIC NOTICE  
Beginning in 2016, on or before February 15 of each year, the Director of the Joint Legislative Budget Committee is required to calculate and transmit to the chairmen of specified legislative committees a truth in spending estimate that calculates the amount of general fund appropriations for the current FY plus the total amount of all appropriations from other sources for the current FY, adjusted by the percentage change in the population for the most recent available 12 month period and by the positive or negative percentage change in the cost of living for the most recent available 12 month period. Beginning in FY2016-17, if a standing committee recommends the passage of a general appropriation bill that exceeds the truth in spending estimate, the House and Senate appropriations committees are required to hold a joint truth in spending hearing before the bill receives a full vote of either chamber and to issue a press release in a specified form at least three days before the joint hearing. AS PASSED HOUSE. First sponsor: Rep. Olson   General Comments (all lists):

01/19/2015 Added to BT List

02/02/2015 Reviewed by BT Committee

03/13/205 PA adopts SUPPORT position


3/4
from Senate appro do pass.
H2381:
TPT; USE TAX EXEMPTION; AIRCRAFT  
The list of deductions from the tax base for the retail classification of transaction privilege taxes and use taxes is expanded to include the gross proceeds of sales or gross income derived from sales of aircraft, navigational and communication instruments and related equipment leased or otherwise transferred to a specified list of persons, in addition to sold to those persons. The list of persons to whom the exempted aircraft and related equipment may be sold, leased or transferred to is expanded to include a certificated or licensed carrier of persons for hire to be used to transport persons or property for hire in intrastate, interstate or foreign commerce. Retroactive to taxable period beginning Jun 1, 1998. Any claim for refund of TPT or use tax based on the retroactive application of this legislation must be submitted to the Department of Revenue by December 31, 2015, and the burden is on the taxpayer to establish the amount of tax paid and the amount qualifying for this deduction. If a refundable amount is not determined or paid until after June 30, 2016, interest accrues after that date. AS PASSED HOUSE. First sponsor: Rep. Olson   General Comments (all lists):

01/19/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


2/24
referred to Senate fin.
H2382:
LOW-INCOME HOUSING; PROPERTY TAX  
Adds a new article to Title 42 (Taxation) governing the valuation of "low-income multifamily residential rental property" (defined). The owner of such property may elect a statutory income method for valuing the property by submitting specified information to the county assessor. Properties valued according to this method are added to class 4 property for property tax purposes. First sponsor: Rep. Olson   General Comments (all lists):

01/19/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


1/28
referred to House ways-means.
H2383 (Chapter 284):
INVALID ANNEXATION; RETURN PROCEDURE  
For territory located in a county with a population of more than 2 million persons (Maricopa County), a territory seeking to void its annexation and be severed from the municipality and returned to the county is required, within 20 years after the territory’s initial annexation, to file with the clerk of the county board of supervisors of the county in which the land is located a petition signed by the owners of 1/2 or more in value of the real and personal property and more than 1/2 of the persons owning real and personal property of the territory, a description and map of the territory to be severed, an affidavit stating that the municipality failed to comply with statutory requirements for annexation, and an affidavit stating that the developer did not complete the municipality's subdivision regulations. The board of supervisors is required to set a public hearing and to notify the governing body of the municipality in which the territory to be severed is located and each owner of real property in the territory. If owners of at least 51 percent of the land area protest the action or if the municipality demonstrates compliance with annexation statutes, the board of supervisors cannot declare the initial annexation void. If the requirements are met and after the public hearing, the board of supervisors is required to order the territory to be severed from the municipality and returned to the county. These provisions self-repeal on July 1, 2017. A municipality is prohibited from requiring the owner of property that is not located in the municipal boundaries to improve the owner's property unless the improvement has a substantial nexus to water or wastewater service that is provided to the owner's property by the municipality. AS SIGNED BY GOVERNOR. First sponsor: Rep. Olson   General Comments (all lists):

01/19/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


4/13
signed by governor. Chap. 284, Laws 2015.
H2384:
COMMUNITY FACILITIES DISTRICTS; FORMATION  
Various changes related to community facilities districts, including increasing the maximum term of bonds to 30 years, from 25, and allowing a bond election question to include authorization for an ad valorem tax levy to pay debt service on the bonds and a limitation on the tax levy. First sponsor: Rep. Olson   General Comments (all lists):

01/19/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


2/9
House ways-means held.
H2406:
FIRE DISTRICT ASSISTANCE TAX; OVERRIDE  
The net assessed valuation of all property in a county fire district is no longer required to decline by a combined total of 20 percent or more over two consecutive valuation years for the voters of the district to authorize an assistance tax override allowing annual levies that are exempt from the tax rate limit of $3.25. Once authorized, overrides are valid for eight consecutive tax years, increased from five, and are no longer subject to an annual levy limit of the amount of the preceding year’s levy multiplied by 1.05. First sponsor: Rep. Stevens   General Comments (all lists):

01/19/2015 Added to BT List

02/02/2015 BT Committee Recommends Monitoring


2/9
House ways-means held.
H2412:
RENEWABLE ENERGY CREDIT; REFUNDABLE; CAP  
The individual and corporate income tax credit for the production of electricity using renewable energy resources is capped in aggregate at $18 million for a calendar year, reduced from $20 million. If a taxpayer's credit exceeds taxes due, the taxpayer may elect to have 80 percent of the amount of the claim not used to offset taxes paid in the same manner as a refund. First sponsor: Rep. Stevens   General Comments (all lists):

01/19/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


2/2
House energy-env held.
H2441:
TAXING DISTRICTS; BOUNDARY CHANGES; PROCEDURES  
For changes to the boundaries of a fire district, community park maintenance district or sanitary district, the information that must be included in the boundary change impact statement is expanded to include a description of the planning areas and boundaries of each potentially affected municipality and whether any property proposed to be added to the district is within the planning areas of any municipality. For a fire district, the statement must also include an explanation of whether the fire district is able to provide the same level of service, capital investment and facilities to the proposed area when compared to all other property within the existing fire district. Notice must be mailed to the clerk of any municipality whose planning area includes any portion of the proposed annexed territory, and the municipal governing body may submit written comments to the district governing body within 20 days after receipt of the notice. The district governing body is prohibited from approving a proposed annexation if the area is within the boundaries of a municipality's planning area and either there is a private entity that provides service to the area or the fire district is not able to provide the same level of service to the area when compared to all other property within the existing fire district using district resources only. AS PASSED HOUSE. First sponsor: Rep. Livingston
Others: Rep. Gray, Rep. Montenegro, Rep. Pratt, Rep. Thorpe
  General Comments (all lists):

01/19/2015 Added to BT List

02/02/2015 Reviewed by BT Committee


4/3
referred to Senate rules only.
H2442:
COMM COLLEGE EXPENDITURE LIMITS; RECALCULATION  
After the close of each fiscal year and before the following December 1, the Economic Estimates Commission is required to recalculate the expenditure limitation for each community college district using the October full-time equivalent student report produced by the Auditor General. First sponsor: Rep. Olson   General Comments (all lists):

01/19/2015 Added to BT List

02/02/2015 BT Committee Recommends SUPPORT

02/13/2015 PA approves SUPPORT position


3/9
retained on House COW calendar.
H2450:
TPT EXEMPTION; RENTING BILLBOARDS  
The list of exemptions from the personal property rental classification of transaction privilege taxes is expanded to include leasing or renting billboards that are designed, intended or used to advertise or inform and are visible from any street, road or other highway. Retroactive to January 1, 2008. Any claim for refund of TPT based on the retroactive application must be submitted to the Department of Revenue by September 30, 2015. The aggregate amount of refunds based on the retroactive application cannot exceed $10,000, and interest is not allowed on any refundable amount if paid before March 1, 2016. AS PASSED HOUSE. First sponsor: Rep. Olson   General Comments (all lists):

02/13/2015 Added to BT List (strike everything) exempts billboards from the rental classification TPT


3/18
from Senate fin do pass.
H2538 (Chapter 128):
SPECIAL DISTRICTS; TRUTH IN TAXATION  
By February 10 of each year, the county assessor is required to transmit and certify to the governing body of each county flood control district, county free library district, county jail district and public health services district the total net assessed values that are required to compute the property tax levy for that district. If the proposed secondary property tax levy of the district, excluding amounts attributable to new construction, is greater than the amount levied by the district in the preceding year, the governing body is required to publish a notice that meets specified requirement and must hold a truth in taxation hearing concurrently with the adoption of the county budget. The governing body may only consider a motion to levy the increased property taxes by roll call vote. Effective January 1, 2016. AS SIGNED BY GOVERNOR. First sponsor: Rep. Mitchell   General Comments (all lists):

01/27/2015 added to BT

02/02/2015 BT recommends Supporting

02/13/2015 PA approves SUPPORT position


3/30
signed by governor. Chap. 128, Laws 2015.
H2568 (Chapter 220):
INSURANCE PREMIUM TAX REDUCTION  
The insurance premium tax rate for insurance other than fire, disability, and health care service and disability insurance is annually reduced from the current rate of 2 percent to specified lower rates in calendar years 2016 through 2025 and to 1.70 percent in calendar year 2026 and beyond. AS SIGNED BY GOVERNOR. First sponsor: Rep. Livingston
Others: Rep. Barton, Rep. Borrelli, Rep. Bowers, Rep. Carter, Rep. Cobb, Rep. Coleman, Rep. Fann, Rep. Finchem, Rep. Gray, Rep. Leach, Sen. Lesko, Rep. Lovas, Rep. Olson, Sen. Shooter, Sen. Smith, Rep. Townsend
  General Comments (all lists):

02/04/2015 to IHC and Public Affairs

02/13/2015 PA approves SUPPORT position based on last year's actions & guiding principles.


4/6
signed by governor. Chap. 220, Laws 2015.
H2576:
TAX; SOLAR ENERGY DEVICES  
For property tax purposes, solar energy devices and systems designed to produce solar energy primarily for in-site consumption are considered to have no value and add no value to the property on which they are installed whether or not the system or device is owned or leased by the owner of the property. First sponsor: Rep. Clark
Others: Rep. Andrade, Rep. Espinoza, Rep. Friese, Rep. Mach, Rep. Otondo, Rep. Saldate, Rep. Sherwood, Rep. Steele
  General Comments (all lists):

02/03/2015 Added to BT List


2/10
referred to House ways-means.
H2583:
MOTOR FUEL TAXES; FOREST PRODUCTS  
Vendors are prohibited from collecting more than the statutorily imposed use fuel tax (currently nine cents per gallon) from a person who purchases use fuel for use in a motor vehicle transporting forest products in compliance with healthy forest enterprise incentive regulations, including a motor vehicle of a subcontractor of a business that qualifies for the incentives. The list of exemptions from the retail classification of transaction privilege and use taxes is expanded to include sales of motor vehicle fuel and use fuel to a subcontractor of a business that qualifies for the incentives. First sponsor: Rep. Campbell
Others: Rep. Barton, Sen. Begay, Rep. Finchem
  General Comments (all lists):

02/03/2015 Added to BT List


2/5
referred to House ways-means.
H2590:
TPT REFORM; CONTRACTORS  
Establishes provisions for determining the tax liability of a person that is either a prime contractor or a subcontractor working under the control of a prime contractor that purchases tangible personal property that was excluded from the tax base under the retail classification of transaction privilege tax (TPT) or use tax at the time of purchase and that incorporates or fabricates the property into a specified project. The amount is calculated and reported based on the location of the project, and is equal to any tax that the seller would have been required to pay under the retail classification of transaction privilege taxes. Specified types of improvements and contracts are subject to or exempt from prime contracting transaction privilege taxes. Establishes deadlines and processes for reporting and payment of the taxes. The lists of exemptions from the retail classification of transaction privilege and use taxes are expanded to include sales of tangible personal property incorporated or fabricated into a project located in an Indian Reservation for which the owner of the project is an “Indian Tribe” or an “Affiliated Indian” (both defined). Counties and municipalities are prohibited from requiring an applicant for a building permit to hold a TPT license or business license as a condition for issuing the building permit. The applicant’s current TPT license number is removed from the list of information that an applicant for licensure as a contractor must submit to the Registrar of Contractors. More. Emergency clause. First sponsor: Rep. Fann
Others: Sen. Burges, Rep. Campbell, Rep. Coleman, Rep. Livingston
  General Comments (all lists):

02/03/2015 Added to BT List


2/19
see S1446.
H2614:
HOAS; INTERIOR CONSTRUCTION; APPROVAL  
Statute passed into law in 2014 that became effective on January 1, 2015 that subjects the gross income derived from a contract for the maintenance, repair, replacement or alteration of existing property that includes modification activities to the prime contracting transaction privilege tax does not apply to contracts entered into by prime contractors or pursuant to written bids made by contractors before January 1, 2015. To qualify for this exemption, the prime contractor must maintain documentation to verify the date of the contract or written bid. Retroactive to January 1, 2015. First sponsor: Rep. Petersen   General Comments (all lists):

02/05/2015 Added to BT List


4/2
FAILED to pass Senate on reconsideration 13-17.
H2615 (Chapter 221):
ILLEGAL TAX LEVIES; REVIEW; NOTICE  
The Property Tax Oversight Commission is required to review the secondary property tax levy of each county, municipality and community college district to identify violations of constitutional and statutory requirements. If the Commission determines that a county, municipality or community college district has levied a secondary property tax in violation of law, the Commission is required to notify the affected political subdivision, the county board of supervisors, the county attorney and the Attorney General of the violation by December 31. Effective January 1, 2016. Also transfers administration of the Debt Oversight Commission to the State Treasurer, from the Department of Revenue. AS SIGNED BY GOVERNOR. First sponsor: Rep. Ackerley
Others: Rep. Mitchell
  General Comments (all lists):

02/05/2015 Added to BT List


4/6
signed by governor. Chap. 221, Laws 2015.
H2616:
PUBLIC SCHOOL CREDIT; EQUALIZATION ASSISTANCE  
Establishes the extracurricular activities and classroom learning priorities assistance for a school district or charter school, which is $47.38 multiplied by the student count of the school district or charter school. Modifies the formula for computing equalization assistance by adding the extracurricular activities and classroom learning priorities assistance of a school district and by subtracting the amount received by a school district or charter school in the most recently reported previous calendar year from school tax credit contributions. School tax credit contributions are no longer limited to being spent on extracurricular activities or character education programs. First sponsor: Rep. Olson   General Comments (all lists):

02/05/2015 Added to BT List


3/9
retained on House COW calendar.
H2617 (Chapter 323):
POLITICAL SUBDIVISIONS; FINANCIAL AUDIT REPORT  
The deadline for counties, municipalities and community college districts to file financial reports with the Auditor General under the uniform expenditure reporting system is moved to nine months after the close of the FY, instead of four months after, and the authority for the Auditor General to grant an extension is deleted. Counties, municipalities and community college districts are required to post financial statements and audits in a prominent location on their official websites no later than seven business days after the date of filing the statements with the Auditor General, and must be accessible for at least 60 months. If the financial statements are not completed and filed, on or before the adoption of the municipal, county or district budget in the subsequent fiscal year, the municipal governing body, county board of supervisors, or district board is required to include a form in the published budget stating that the financial statements are pending, the reasons for the delay and the estimated date of completion. A copy of the form must be sent to the Auditor General, the Speaker of the House and the President of the Senate. Beginning July 1, 2016, a fee is assessed to each council of governments (COG) that receives state shared revenues and to each regional transportation authority (RTA) in counties with a population of more than 400,000 (Pima and Maricopa) that receives state shared revenues as determined by the Department of Revenue. The share of fees assessed to these entities must be in proportion to the aggregate amount of monies distributed to all COGs or RTAs for the FY two years preceding the current FY, as a percentage of aggregate distributions to all relevant local governments for that FY. Counties with a population of more than 200,000 but less than 900,000 persons (Pinal, Mohave, and Yavapai) are authorized to use up to $1 million to meet any county fiscal obligation from any source of county revenue designated by the county, including monies of any countywide special taxing jurisdiction in which the board of supervisors serves as the board of directors. By October 1, 2015, these counties are required to report to the Director of the Joint Legislative Budget Committee if the county used a revenue source for other than its designated purpose to meet a county fiscal obligation. AS SIGNED BY GOVERNOR. First sponsor: Rep. Mesnard
Others: Rep. Kern, Rep. Lovas, Rep. Mitchell, Rep. Montenegro, Rep. Shope, Rep. Weninger
  General Comments (all lists):

02/05/2015 Added to BT List

03/17/2015 addes to PA list based on SUPPORT position of 1066 (Political Subdivisions; Financial Audit Reports)


4/14
signed by governor. Chap. 323, Laws 2015.
H2621:
MULTIMEDIA FILM PRODUCTION TAX INCENTIVES  
Establishes an individual and corporate income tax credit for tax years 2016 through 2026 for "qualified production expenditures" by a "multimedia production company" (both defined) that produces one or more motion pictures in Arizona. The credit is 25 percent of qualified expenditures exceeding $250,000, plus 5 percent of the wages paid to Arizona residents for work on the production. The credit is capped at $10 million for any individual production. If the credit exceeds taxes due, the amount not used as an offset against income taxes is paid to the taxpayer in the same manner as a refund. Qualifications and an application process for companies wishing to claim the credit are established. The Governor is required to appoint a multimedia production liaison to approve the tax credits. First sponsor: Rep. Shope
Others: Rep. Barton, Rep. Coleman, Sen. Driggs, Rep. Lawrence, Sen. Miranda, Sen. Pancrazi, Rep. Pratt, Rep. Saldate, Rep. Steele, Rep. Wheeler
  General Comments (all lists):

02/11/2015 added to BT List


3/31
referred to House rules only.
H2625:
MINING; SEVERANCE TAX; TPT; RATES  
Increases the tax rate of transaction privilege taxes levied on the mining classification to 4.125 percent, from 3.125 percent, of the tax base. Increases the tax rate of the severance tax levied on a severer engaged in the business of mining to 3.5 percent, from 2.5 percent, of the net severance base. Due to a potential increase in state revenue, this bill requires the affirmative vote of at least 2/3 of each house of the Legislature for passage. First sponsor: Rep. Gabaldon   General Comments (all lists):

02/11/2015 added to BT List


2/12
referred to House ways-means, appro.
H2653 (Chapter 324):
TAX LIENS; DELINQUENCY; PARTIAL PAYMENTS  
Eliminates the requirement for a person to pay interest at a delinquency rate of 16 percent when redeeming a real property tax lien in a county that has established an Elderly Assistance Fund, instead of the rate stated in the certificate of purchase. Eliminates the requirement for the county treasurer to deposit an amount in the Fund that is equal to the difference between 16 percent and the amount of interest stated in the certificate of purchase. It is the intent of the Legislature that the Elderly Assistance Program will continue using monies currently in the Fund. AS SIGNED BY GOVERNOR. First sponsor: Rep. Olson   General Comments (all lists):

02/11/2015 added to BT List


4/14
signed by governor. Chap. 324, Laws 2015.
H2670 (Chapter 6):
INTERNATIONAL OPERATIONS CENTERS  
Beginning July 1, 2016, utility relief is allowed for the owner or operator of an "international operations center" (defined) that is certified by the Arizona Commerce Authority. An application process for certification is established. The owner or operator of an international operations center is required to achieve a minimum annual investment of $100 million in new capital assets in each of 10 consecutive taxable years and a minimum investment of at least $1.25 billion in new capital assets on or before the 10th anniversary of certification. The list of deductions from the tax base for the utilities classification of transaction privilege taxes is expanded to include gross income derived from sales of electricity or natural gas to a business that operates a certified international operations center in Arizona. The list of exemptions from use taxes is expanded to include the purchase price of electricity or natural gas by a business that operates a certified international operations center in Arizona. Municipalities that levy transaction privilege taxes on the business of producing or providing electricity, power or natural gas are required to either tax or exempt in whole the gross income from sales by those businesses to businesses that operate a certified international operations center in Arizona. The individual and corporate income tax credit for investment in new renewable energy facilities is allowed if the power will be generated primarily for the purposes of the taxpayer's international operations center, if the taxpayer invests at least $100 million in a 3-year period in a new renewable energy facility in Arizona, if a portion of the energy produced is used for self-consumption in Arizona, and the taxpayer meets other specified conditions. Establishes a process for reimbursement of the credits if the taxpayer fails to make the required investment in renewable energy facilities within the time period required or if the certification of an international operations center is revoked. AS SIGNED BY GOVERNOR. First sponsor: Rep. Gowan
Others: Rep. Livingston, Rep. Montenegro, Rep. Olson, Rep. Robson, Rep. Stevens
  General Comments (all lists):

02/11/2015 added to BT List


3/3
signed by governor. Chap. 6, Laws 2015.
HCR2016:
PERSONAL PROPERTY TAX; EXEMPTION  
The 2016 general election ballot is to carry the question of whether to amend the state Constitution to prohibit the Legislature from levying a tax on the full cash value of the first $2.4 million of assessed cash value of personal property that is initially acquired during or after tax year 2016 and that is used for agricultural purposes or in trade or business. The Legislature is required to provide by law an increase to the full cash value of the first $2.4 million according to annual variations in a designated national inflation index. First sponsor: Rep. Mesnard
Others: Rep. J. Allen, Sen. S. Allen, Sen. Barto, Rep. Campbell, Rep. Cobb, Rep. Fann, Sen. D. Farnsworth, Rep. Gray, Rep. Kern, Sen. Lesko, Rep. Livingston, Rep. Lovas, Rep. Mitchell, Rep. Petersen, Sen. Smith, Rep. Thorpe, Rep. Weninger, Sen. Yee
  General Comments (all lists):

01/20/2015 Added to BT

02/02/2015 Reviewed by BT Committee

02/23/2015 Take back to BT Committee


3/25
from Senate rules okay.
HCR2030:
BALLOT MEASURES; SPENDING INCREASE; REQS  
The 2016 general election ballot is to carry the question of whether to amend the state Constitution to require the affirmative vote of at least 2/3 of the voters for any initiative or referendum measure or proposed amendment to the Constitution that provides for a net increase in state expenditures to become effective. The Legislature is required to designate the office, agency or committee whose duties will include determining whether a measure provides for a net increase in state expenditures. First sponsor: Rep. Finchem
Others: Rep. Bowers, Rep. Cobb, Rep. Lawrence
  General Comments (all lists):

02/03/2015 Added to BT List


2/10
referred to House elect.
S1066 (Chapter 268):
POLITICAL SUBDIVISIONS; FINANCIAL AUDIT REPORTS  
Counties, municipalities and community college districts are required to post financial statements and audits in a prominent location on their official websites no later than seven business days after the date of filing the statements with the Auditor General, and must be accessible for at least 60 months. If the financial statements are not completed and filed, on or before the adoption of the municipal, county or district budget in the subsequent fiscal year, the municipal governing body, county board of supervisors, or district board is required to include a form in the published budget stating that the financial statements are pending, the reasons for the delay and the estimated date of completion. A copy of the form must be sent to the Auditor General, the Speaker of the House and the President of the Senate. AS SIGNED BY GOVERNOR. First sponsor: Sen. Pierce   General Comments (all lists):

01/26/2015 WR Reviewed

02/02/2015 BT Recommends Supporting

02/13/2015 PA approves SUPPORT position

BECAME ANOTHER BILL (2617)


4/13
signed by governor. Chap. 268, Laws 2015.
S1088:
EMPOWERMENT SCHOLARSHIP ACCOUNTS; ELIGIBILITY  
For each tax year beginning with 2016, the Department of Revenue is required to adjust the income dollar amounts for each individual income tax rate bracket by the average annual change in the metropolitan Phoenix consumer price index. The revised dollar amounts must be raised to the nearest whole dollar and cannot be revised below the amounts prescribed in the prior tax year. First sponsor: Sen. Lesko
Others: Sen. S. Allen, Sen. Barto, Rep. Barton, Sen. Biggs, Sen. Burges, Rep. Campbell, Rep. Cobb, Sen. Driggs, Rep. Fann, Sen. Farley, Sen. D. Farnsworth, Rep. Finchem, Rep. Gray, Sen. Kavanagh, Rep. Kern, Rep. Leach, Rep. Livingston, Rep. Olson, Rep. Petersen, Sen. Pierce, Sen. Shooter, Rep. Townsend, Sen. Ward, Sen. Worsley
  General Comments (all lists):

01/26/2015 WR Reviewed

01/30/2015 Public Affairs formally adopts SUPPORT position

02/02/2015 BT Recommends SUPPORT

03/23/2015 based on Striker GPCC goes Neutral on this bill

 


4/1
House COW approved with amend #4888 and floor amend #5178. NOTE SHORT TITLE CHANGE.
S1120:
TPT EXEMPTION; FINE ART  
The list of exemptions from the retail classification of transaction privilege tax is expanded to include the sale of “work of fine art” (defined elsewhere in statute) to nonresidents if the vendor ships or delivers the work of fine art to a destination out of state. Retroactive to January 1, 2015. AS PASSED SENATE. First sponsor: Sen. Lesko   General Comments (all lists):

02/17/2015 Added to BT List


3/25
House appro held.
S1123:
HEALTHY FOREST ENTERPIRSE CREDITS; REPEAL  
Repeals the individual and corporate income tax credits for employment by a healthy forest enterprise and for ecological restoration workforce training. Due to a potential increase in state revenue, this bill requires the affirmative vote of at least 2/3 of each house of the Legislature for passage. First sponsor: Sen. Lesko   General Comments (all lists):

01/20/2015 Added to BT

02/02/2015 Reviewed by BT Committee


1/22
referred to Senate fin.
S1133:
TPT; MUNICIPALITIES; CUSTOMER REFUND CLAIMS  
A customer who paid to a “vendor” (defined) an amount equal to a transaction privilege tax that was passed on by the vendor to the customer or who paid a use tax to a vendor is permitted to file a claim for a refund of the tax if the vendor assigns to the customer its right to claim an amount equal to any tax and interest that the vendor could otherwise claim. The process for customers to file claims under these provisions is specified. If a vendor fails or refuses to assign its right to a claim within 60 days of the customer’s written request or if the vendor is no longer in business, the customer may provide the Department of Revenue or municipal tax collector with a statement explaining the efforts made to obtain an assignment from the vendor, which must contain specified information. The Dept or tax collector must attempt to notify the vendor of the claim and continue processing the claim. On paying or crediting monies to the customer pursuant to the claim, the Dept or tax collector must amend the vendor’s returns or account to reflect the amount paid or credited. The Dept or tax collector may disallow a claim filed by a customer if the Dept already paid or credited a refund arising from the same transaction. The Dept or tax collector is required to notify the customer and the vendor of any disallowed claim. Retroactive to January 1, 2015, The list of exemptions from the retail classification of transaction privilege tax is expanded to include sales of “works of fine art” (defined elsewhere in statute) to nonresidents if the vendor ships or delivers the work of fine art to a destination out of state. AS PASSED HOUSE. First sponsor: Sen. Lesko   General Comments (all lists):

01/20/2015 Added to BT

02/02/2015 BT Committee Recommends Supporting

02/13/2015 PA approves SUPPORT position


4/2
passed House 34-25; ready for Senate action on House amendments.
S1135 (Chapter 322):
TAX LIENS; DELINQUENCY; PARTIAL PAYMENTS  
For all certificates of purchase sold in calendar year 2016 and afterwards for tax year 2014 and afterwards in a county with a population of more than 3 million persons (Maricopa County), if no prior year certificates of purchase are outstanding, the county treasurer is required to accept a partial payment on delinquent taxes in an amount equal to at least 25 percent of the principal amount shown on the oldest remaining year of the delinquency plus any accrued interest and fees due on the principal amount. If no certificate of purchase is outstanding, the county treasurer is required to credit the taxpayer for the payment. If any part of the tax or any installment remains unpaid at the date of delinquency, the delinquency relates only to the amount remaining unpaid. Partial payments on delinquent taxes are required to be impounded and disbursed by the county treasurer as prescribed by statute. Beginning in calendar year 2016, on or after June 1 in a county with a population of more than 3 million persons (Maricopa County), if no prior year certificates of purchase are outstanding and if a person who holds a certificate of purchase for tax year 2014 and afterwards desires to pay subsequent taxes, the county treasurer is required to issue a separate certificate of purchase by assignment for each subsequent year’s taxes, accrued interest and fees due on the property. The principal amount of each subsequent year’s certificate of purchase bears interest at the rate stated in the original certificate of purchase from the first day of the month following the purchase of the subsequent certificate. Subsequent certificates of purchase by assignment issued by the county treasurer carry the full foreclosure right as the original certificate of purchase. A lien that has been partially redeemed must be fully redeemed before the delivery of a treasurer’s deed to the purchaser. The county treasurer is prohibited from accepting partial payments after the date the treasurer receives notice of action to foreclose the right to redeem. More. AS SIGNED BY GOVERNOR. First sponsor: Sen. Smith   General Comments (all lists):

01/20/2015 Added to BT

02/02/2015 Reviewed by BT Committee


4/14
signed by governor. Chap. 322, Laws 2015.
S1183:
IMPROVEMENT DIST; ENHANCED MUNICIPAL SVCS  
Improvement districts for enhanced municipal services are no longer required to be formed within a "designated area" (defined elsewhere in statute). First sponsor: Sen. Ward
Others: Rep. Barton, Rep. Borrelli, Rep. Cobb, Sen. Dial, Rep. Fann, Rep. Gray, Rep. Shope
  General Comments (all lists):

01/20/2015 Added to BT

02/02/2015 Reviewed by BT Committee


1/26
referred to Senate fin ins.
S1184 (Chapter 83):
MUNICIPAL ELECTIONS; BALLOT; DISCLOSURE  
For any municipal election to approve a bond, sales tax or property tax measure, the publicity pamphlet must include an estimate of the annual level of property taxes sufficient to pay the bond debt, the amount of the sales tax increase, or an estimate of the property tax for various types of properties valued at specified amounts. The publicity pamphlet format for bond, sales tax or property tax measures is of statewide concern, and these requirements preempt all local laws, ordinances and charter provisions to the contrary. AS SIGNED BY GOVERNOR. First sponsor: Sen. Griffin
Others: Sen. S. Allen, Sen. Burges, Sen. Shooter
  General Comments (all lists):

01/20/2015 Added to BT

02/02/2015 Reviewed by BT Committee


3/30
signed by governor. Chap. 83, Laws 2015.
S1188 (Chapter 227):
INTERNAL REVENUE CODE CONFORMITY  
Makes changes to the state's income tax laws so that they conform to the IRS Code in effect as of January 1, 2015. An annual exercise. AS SIGNED BY GOVERNOR. First sponsor: Sen. Lesko   General Comments (all lists):

01/20/2015 Added to BT

02/02/2015 BT recommends SUPPORT

02/13/2015 PA approves SUPPORT position


4/9
signed by governor. Chap. 227, Laws 2015.
S1245:
LIQUOR LICENSE RENEWAL FORMS  
The Department of Liquor Licenses and Control is prohibited from requiring an applicant for a liquor license renewal to submit a new application form or renewal form if the licensee certifies in writing that the information on the previous application form or renewal form has not changed. First sponsor: Sen. Dial   General Comments (all lists):

02/13/2015 Added to BT List (strike everything)

S/E - Makes various changes to the ACA Data Center Incentive Program.


2/18
from Senate com-work dev with amend #4242.
S1246:
ARIZONA INTERNAL REVENUE SERVICE  
Beginning January 1, 2020, the Department of Revenue is renamed the Arizona Internal Revenue Service (AZIRS). The AZIRS succeeds to the authority, powers, duties and responsibilities of the Dept, and all property, assets, personnel, and administrative matters are transferred from the Dept to the AZIRS on January 1, 2020. The statutory termination date of July 1, 2016 for the Dept is repealed, and the AZIRS terminates on July 1, 2030. First sponsor: Sen. Dial   General Comments (all lists):

01/20/2015 Added to BT

02/02/2015 Reviewed by BT Committee


1/28
referred to Senate fin, appro.
S1248:
SPLIT DEPARTMENT OF REVENUE  
Effective January 1, 2020, the Arizona Internal Revenue Service (AZIRS) is established. The Governor is required to appoint a Director of the AZIRS, and the powers and duties of the Director are specified. Beginning January 1, 2020, the AZIRS succeeds to the authority, powers, duties and responsibilities of the Dept relating to taxation of income, and all property, assets, personnel, and administrative matters relating to income tax are transferred from the Dept to the AZIRS on that date. The AZIRS terminates on July 1, 2030. First sponsor: Sen. Dial   General Comments (all lists):

01/20/2015 Added to BT

02/02/2015 Reviewed by BT Committee


1/28
referred to Senate fin.
S1270:
JLBC; ECONOMIC IMPACT  
Fiscal notes prepared by the Joint Legislative Budget Committee on pending legislation are required, if practical, to reflect any significant fiscal impact of legislation on the state's private sector economy. First sponsor: Sen. Worsley
Others: Rep. Coleman, Sen. Dial, Sen. Driggs, Sen. Kavanagh
  General Comments (all lists):

01/20/2015 Added to BT

02/02/2015 Reviewed by BT Committee


1/29
referred to Senate appro.
S1319:
TAXATION; SELF-REPORTED ERRORS; INJURED SPOUSES  
A penalty cannot be assessed for failure to pay the amount shown as tax on any return within the time prescribed on additional amounts of tax paid if the taxpayer voluntarily identifies errors contained in the original tax return and files an amended return. After filing a joint income tax return, a taxpayer may apply to the Department of Revenue for protection of the taxpayer’s share of any overpayment or refund from setoff for the past due state taxes, child support, spousal maintenance or other obligations of the taxpayer’s spouse owed to a court or state agency. First sponsor: Sen. Worsley
Others: Rep. Cardenas, Sen. Driggs, Sen. Lesko, Rep. Olson, Sen. Pierce, Rep. Weninger, Sen. Yee
  General Comments (all lists):

01/20/2015 Added to BT

02/02/2015 Reviewed by BT Committee


3/26
from House rules okay.
S1371:
SCHOOLS; DESEGREGRATION; OCR; FUNDING; PHASE-OUT  
Beginning in FY2016-17, if a school board budgets for expenses outside the revenue control limit for the purpose of complying with an administration agreement for remediating alleged or proven racial discrimination, the school board is required to ensure that the remediating expenses will be annually reduced for 5 consecutive FYs by at least 15 percent of the amount levied in FY2009-10, and is prohibited from budgeting for remediating expenses outside the revenue control limit after FY2022-23. Beginning in FY2016-17, if a school board budgets for expenses outside the revenue control limit for the purpose of complying with a court order of desegregation, the school board is required to ensure that the desegregation expenses will be annually reduced for 10 consecutive FYs by at least 7 percent of the amount levied in FY2009-10, and is prohibited from budgeting for desegregation expenses outside the revenue control limit after FY2027-28. First sponsor: Sen. Lesko   General Comments (all lists):

02/03/2015 Added to BT


2/17
from Senate rules okay.
S1382:
SPECIAL DISTRICTS; DEBT LEVEL; REPORT  
The information that must be included in special taxing districts’ annual financial report is expanded to include a statement of the amount of outstanding debt of the district as a percentage of the total assessed valuation of all real property in the district. A copy of district financial reports and audits must be submitted to the state treasurer. First sponsor: Sen. Dial   General Comments (all lists):

02/03/2015 Added to BT


2/16
Senate debt-budget held.
S1392:
TPT; INDIAN TRIBAL POSTSECONDARY EDUCATION  
The deadline by which a qualifying Indian tribe must enter into a compact with the state in order to receive transaction privilege tax revenues from sources located on the Indian reservation for a community college campus owned or operated by the tribe is extended five years to September 1, 2017. First sponsor: Sen. Begay
Others: Sen. Shooter
  General Comments (all lists):

02/03/2015 Added to BT


3/12
referred to House appro.
S1409:
TAX EXEMPTIONS; DEDUCTIONS; CREDITS; SUNSET  
Any new transaction privilege or use tax deduction, exemption or credit established by the Legislature is required to include a specific repeal date of from and after December 31 of the 10th full calendar year following the date the deduction, exemption or credit is enacted. Establishes a repeal or termination date of January 1, 2025 for various existing TPT deductions and credits. Any new individual or corporate income tax credit established by the Legislature is required to include a specific repeal date of from and after December 31 of the 10th full calendar year following the date the deduction, exemption or credit is enacted. The Joint Legislative Income Tax Credit Review Committee is renamed the Joint Legislative Income Tax Credit Sunset Review Committee, and if the Committee recommends that a credit be retained, the credit must be assigned a subsequent repeal date. Numerous existing income tax credits are repealed each tax year beginning in 2017 through tax year 2026. Due to a potential increase in state revenue, this bill requires the affirmative vote of at least 2/3 of each house of the Legislature for passage. First sponsor: Sen. Farley
Others: Sen. Bradley, Sen. Hobbs
  General Comments (all lists):

02/03/2015 Added to BT


2/3
referred to Senate fin.
S1442:
STATE BUDGET; ESTIMATES; HEARING; NOTICE  
On or before February 15 of each year beginning in 2016, the Director of the Joint Legislative Budget Committee is required to calculate and transmit to the chairmen of specified legislative committees a truth in spending estimate for the following FY that calculates the amount of general fund appropriations for the current FY plus the total amount of all appropriations from other sources for the current FY, adjusted by the percentage change in "population" for the most recent available 12-month period and the percentage change in the "cost of living" for the most recent available 12-month period (both defined). Beginning in FY2016-17, if a legislative standing committee recommends the passage of a "budget bill" (defined as the general appropriation bill) that exceeds the truth in spending estimate, the house and senate appropriations committees are required to hold a joint truth in spending hearing before the bill receives a full vote of either chamber, and to issue a press release in a specified form at least three days before the hearing. First sponsor: Sen. Smith
Others: Sen. Burges, Sen. D. Farnsworth, Rep. Finchem, Sen. Ward
  General Comments (all lists):

02/03/2015 Added to BT


2/3
referred to Senate debt-budget, appro.
S1446 (Chapter 4):
TPT REFORM; CONTRACTORS  
Establishes provisions for determining the tax liability of a person that is either a prime contractor or a subcontractor working under the control of a prime contractor and that purchases tangible personal property that was excluded from the tax base under the retail classification of transaction privilege tax (TPT) or use tax at the time of purchase and that incorporates or fabricates the property into a specified project. The amount is calculated and reported based on the location of the project, and is equal to any tax that a seller would have been required to pay under the retail classification of transaction privilege taxes. Specified types of improvements and contracts are subject to or exempt from prime contracting transaction privilege taxes. Establishes deadlines and processes for reporting and payment of the taxes. The lists of exemptions from the retail classification of transaction privilege and use taxes are expanded to include sales of tangible personal property incorporated or fabricated into a project located in an Indian Reservation for which the owner of the project is an “Indian Tribe” or an “Affiliated Indian” (both defined). Counties and municipalities are prohibited from requiring an applicant for a building permit to hold a TPT license or business license as a condition for issuing the building permit. The applicant’s current TPT license number is removed from the list of information that an applicant for licensure as a contractor must submit to the Registrar of Contractors. Establishes a procedure for the payment of taxes for a person who cancels a TPT license on or before the last day of the first month that occurs at least 60 days after the effective date of this legislation. Retroactive to January 1, 2015. Emergency clause. AS SIGNED BY GOVERNOR. First sponsor: Sen. Lesko
Others: Sen. Burges, Rep. Fann, Sen. Farley, Sen. Worsley
  General Comments (all lists):

02/03/2015 Added to BT


2/24
signed by governor. Chap. 4, Laws 2015.
S1449 (Chapter 89):
PUBLIC MONIES; INVESTMENT; POOLED COLLATERAL  
Various changes relating to regulation of "public monies" (defined). Various types of securities or instruments are removed from the list of approved collateral. For the purpose of statutes regulating public deposits, “public depositor” does not include a charter school, tribal entity or federal agency, and “public deposit” does not include monies that have been collateralized pursuant to federal housing regulations. Withdrawals of eligible collateral for public deposits must have the written consent of the administrator, and substitutions of collateral may be made with notification to the administrator. AS SIGNED BY GOVERNOR. First sponsor: Sen. D. Farnsworth   General Comments (all lists):

02/03/2015 Added to BT


3/30
signed by governor. Chap. 89, Laws 2015.
S1468:
INTERNATIONAL OPERATIONS CENTERS; INCENTIVES  
The list of deductions from the tax base for the utilities classification of transaction privilege taxes, the list of exemptions from use taxes and the list of items that municipalities are prohibited from levying a transaction privilege tax on are expanded to include gross income derived from sales of electricity or natural gas to an “international operations center” (defined as a facility having a capital investment cost of at least $1.25 billion and that the Department of Revenue has qualified for the income tax credit for renewable energy investment). The individual and corporate income tax credits for investment in new renewable energy facilities that produce energy for self-consumption using renewable energy resources is allowed if the power will be used primarily for an international operations center. Other eligibility requirements for the credits are modified, including reducing the required investment to $100 million, from $300 million. The amount of the credits is increased to $5 million per year for five years for each renewable energy facility, from $1 million per year. First sponsor: Sen. Biggs
Others: Sen. Griffin, Sen. Shooter, Sen. Yarbrough
  General Comments (all lists):

02/03/2015 Added to BT


2/25
Senate COW approved with floor amend #4511, a substitute for amend 4210. See H2670.