Budget & Tax Committee
54th Legislature - 1st Regular Session, 2019 Wednesday, Jan 23 2019 2:45 PM
Bill Summaries
H2011: VETERANS; INCREASED INCOME TAX SUBTRACTION

The maximum amount of benefits, annuities and pensions received during the tax year as retired or retainer pay of the uniformed services of the U.S. that may be subtracted from Arizona gross income for the purposes of individual income taxes is increased to $6,250 for tax year 2020 and to $10,000 for tax years 2021 and beyond, from $3,500 in tax year 2019.

First sponsor: Rep. Griffin (R - Dist 14)
Others: Sen. Borrelli (R - Dist 5)


 

Single List Comments:

1/22: hold/monitor

H2042: STATUTE OF LIMITATIONS; INCOME TAX

If a taxpayer fails to file an income tax return, the Department of Revenue is required to assess the tax or begin a proceeding in court to collect the tax within 10 years after the date the most recent income tax return was required to be filed.

First sponsor: Rep. Petersen (R - Dist 12)


 

General Comments (all lists):

1/22: BT recommend SUPPORT

Single List Comments:

1/22: recommend SUPPORT

H2042: STATUTE OF LIMITATIONS; INCOME TAX 1/22 referred to House ways-means.
H2158: FOOD; MUNICIPAL TAX EXEMPTION

Municipalities and other taxing jurisdictions are prohibited from levying a transaction privilege, sales, use or other similar tax or fee on the sale of food items intended for human consumption in the home as defined by Department of Revenue rules.

First sponsor: Rep. Bolick (R - Dist 20)
Others: Rep. Biasiucci (R - Dist 5), Rep. Blackman (R - Dist 6), Rep. Carroll (R - Dist 22), Rep. Fillmore (R - Dist 16), Rep. Payne (R - Dist 21), Rep. Toma (R - Dist 22)


 

Single List Comments:

1/22: hold/monitor

H2159: PRESCRIPTION DRUGS; MUNICIPAL TAX EXEMPTION

The list of items that municipalities and special taxing districts are prohibited from levying a transaction privilege or use tax on is expanded to include sales of drugs and medical oxygen, including a delivery hose, mask or tent, regulator and tank, prescribed by a member of the medical, dental or veterinarian profession who is licensed to administer such substances.

First sponsor: Rep. Bolick (R - Dist 20)
Others: Rep. Biasiucci (R - Dist 5), Rep. Blackman (R - Dist 6), Rep. Carroll (R - Dist 22), Rep. Fillmore (R - Dist 16), Rep. Payne (R - Dist 21), Rep. Toma (R - Dist 22)


 

Single List Comments:

1/22: hold/monitor

H2187: APPROP; K-12 ROLLOVER

The Department of Education is required to defer until after June 30, 2020 but no later than July 12, 2020 $630.7 million of the basic state aid and additional state aid payments that otherwise would be apportioned to school districts during FY2019-20. Makes a supplemental appropriation of $630.7 million from the general fund in FY2020-21 to the Dept for basic state aid and additional state aid entitlement for FY2020-21, and requires the appropriation to be disbursed after June 30, 2020 but no later than July 12, 2020.

First sponsor: Rep. Udall (R - Dist 25)
Others: Rep. J. Allen (R - Dist 15), Rep. Barto (R - Dist 15), Rep. Biasiucci (R - Dist 5), Rep. Blackman (R - Dist 6), Rep. Bolick (R - Dist 20), Rep. Carroll (R - Dist 22), Rep. Cobb (R - Dist 5), Rep. Cook (R - Dist 8), Rep. Dunn (R - Dist 13), Rep. Fillmore (R - Dist 16), Rep. Griffin (R - Dist 14), Rep. Jermaine (D - Dist 18), Rep. Kern (R - Dist 20), Rep. Lawrence (R - Dist 23), Rep. Osborne (R - Dist 13), Rep. Payne (R - Dist 21), Rep. Petersen (R - Dist 12), Rep. Roberts (R - Dist 11), Rep. Rodriguez (D - Dist 27), Rep. Stringer (R - Dist 1), Rep. Thorpe (R - Dist 6), Rep. Toma (R - Dist 22), Rep. Weninger (R - Dist 17)


 

Single List Comments:

1/22: hold/monitor

H2187: APPROP; K-12 ROLLOVER 1/22 referred to House educ, appro.
H2330: SCHOOL DISTRICTS; OVERRIDES; ASSESSED VALUATION

For an election to approve a school district budget that exceeds the aggregate budget limit for the budget year, the estimated amount of the secondary property taxes if the proposed budget is adopted that the informational pamphlet is required to contain must be based on an owner-occupied residence whose assessed valuation is the average assessed valuation of class 3 property for the previous 5 years or the previous 10 years, whichever is greater, instead of for the current year.

First sponsor: Rep. Udall (R - Dist 25)


 

Single List Comments:

1/22: hold/monitor

H2359: INCOME TAX; CHARITABLE DEDUCTIONS

Retroactive to taxable years beginning with 2018, the standard deduction allowed for personal income taxes must be increased by the amount of charitable deductions that would have been allowed if the taxpayer elected to claim itemized deductions.

First sponsor: Rep. Toma (R - Dist 22)


 

Single List Comments:

1/22: hold/monitor

H2360: TPT; ESTIMATED PAYMENTS; LIABILITY THRESHOLD

The threshold after which a business entity is required to file an estimated transaction privilege tax payment is increased to an annual total tax liability of an unspecified amount (blank in original) or more in 2019, an unspecified amount (blank in original) or more in 2020, an unspecified amount (blank in original) or more in 2021, an unspecified amount (blank in original) or more in 2022, an unspecified amount (blank in original) or more in 2023, an unspecified amount (blank in original) or more in 2024, and an unspecified amount (blank in original) or more in 2025 and each year after, from $1 million or more.

First sponsor: Rep. Toma (R - Dist 22)


 

Single List Comments:

1/22: hold/monitor

H2365: TAX CREDITS; AFFORDABLE HOUSING

Establishes a credit against individual and corporate income taxes and insurance premium taxes for projects that qualify for the federal low-income housing tax credit and that are placed in service from and after June 30, 2020. The credit is equal to the amount of the federal low-income housing credit for the qualified project. To claim the credit, a taxpayer is required to apply to the Arizona Department of Housing and receive an eligibility statement. If the amount of the credit exceeds taxes due, the taxpayer may carry the unused amount forward for up to five consecutive taxable years. The maximum aggregate credit amount is $12 million in any calendar year. Effective January 1, 2020.

First sponsor: Rep. Toma (R - Dist 22)
Others: Rep. Bolding (D - Dist 27), Rep. Engel (D - Dist 10), Rep. Espinoza (D - Dist 19), Rep. D. Hernandez (D - Dist 2), Sen. Livingston (R - Dist 22), Rep. Rivero (R - Dist 21), Rep. Rodriguez (D - Dist 27), Rep. Shope (R - Dist 8), Rep. Sierra (D - Dist 19), Rep. Udall (R - Dist 25), Rep. Weninger (R - Dist 17)


 

Single List Comments:

1/22: hold/monitor

H2367: LIMITED AUDIT REVIEW; ELECTRONIC PORTAL

The Department of Revenue is authorized to conduct a limited scope review of a filed tax return if it discovers a discrepancy between the return and any information the Dept receives from a third party. The taxpayer has at least 15 calendar days to respond to notice of the discrepancy from the Dept, and may provide documentation to substantiate the taxpayer's return as originally filed or to explain or resolve the discrepancy. The Dept is authorized to assess tax, interest or penalties if the taxpayer does not respond to the notice after 15 calendar days. Also, except for individual income tax, the Dept is authorized to issue notice of its determination of deficiency by using an electronic portal in lieu of mail if the taxpayer provides an e-mail address to the Dept, the Dept notifies the taxpayer via the e-mail address when the notice is posted to the electronic portal, and the e-mail notification is sent on the same day the notice is posted to the electronic portal.

First sponsor: Rep. Toma (R - Dist 22)
Others: Sen. Livingston (R - Dist 22), Rep. Rivero (R - Dist 21)


 

General Comments (all lists):

1/22: BT recommend OPPOSE

Single List Comments:

1/22: recommend OPPOSE

H2373: TAX CORRECTIONS ACT OF 2019

Corrections to the tax code as recommended by the Department of Revenue and Legislative Council. Changes are for clarification or to blend conflicting statutes and are not intended to be substantive. 36 pages. An annual exercise.

First sponsor: Rep. Toma (R - Dist 22)


 

Single List Comments:

1/22: hold/monitor

S1033: PROPERTY TAX STATEMENTS; MORTGAGED PROPERTY

The county treasurer is required to mail a statement of property taxes due on a mortgaged property to the mortgagor and the mortgagee, instead of being required to do so on request.

First sponsor: Sen. Leach (R - Dist 11)


 

General Comments (all lists):

1/22: BT recomment SUPPORT

Single List Comments:

1/22: recommend SUPPORT

S1033: PROPERTY TAX STATEMENTS; MORTGAGED PROPERTY 1/14 referred to Senate fin.
S1049: GPLET; DEFINITIONS

Beginning January 1, 2020, a school district, community college district and the Arizona Board of Regents are added to the definition of "government lessor" for the purpose of government property lease excise tax (GPLET). The definition of "government property improvement" for GPLET does not include a building that is used predominantly for an academic purpose or student housing or that is located in an area designated as a research park.

First sponsor: Sen. Leach (R - Dist 11)


 

Single List Comments:

1/22: hold/monitor

S1049: GPLET; DEFINITIONS 1/15 referred to Senate fin.
S1080: TPT; USE TAX; EDUCATION

Establishes a required distribution formula for all monies collected from a new article in the state Constitution. Requires monies generated from the tax to be paid in monthly installments as follows: 73 percent to the Classroom Site Fund, 22 percent to the Arizona Board of Regents to be distributed proportionally to each university based on the number of students who receive in-state tuition to maintain an in-state tuition rate that is consistent with the state Constitutional requirement for tuition to be as nearly free as possible, and 5 percent for community college trade and workforce development programs. Repeals the additional transaction privilege tax rate increment of 0.6 percent imposed from July 1, 2022 through June 30, 2041 that would have been distributed for specified education purposes, and repeals statute specifying the distribution of those revenues. Repeals the individual income tax credit for increased transaction privilege or excise taxes paid for education. Modifies the purposes for which monies from the Classroom Site Fund must be spent to remove class size reduction and add voluntary full-day kindergarten, the cost of additional school days, student support services and school resource officers. Deletes the requirement for school districts and charter schools to allocate 40 percent of the monies received from the Classroom Site Fund for teacher compensation increases based on performance and employment related expenses, 20 percent of the monies for teacher base salary increases and employment related expenses, and 40 percent of the monies for maintenance and operation purposes. Conditionally enacted effective July 1, 2021 if the state Constitution is amended by a vote of the people at the 2020 general election by passage of an unspecified House Concurrent Resolution (blank in original). [Capitol Reports Note: The new article in the state Constitution referred to in this legislation is established by SCR1001.]

First sponsor: Sen. S. Allen (R - Dist 6)


 

Single List Comments:

1/22: hold/monitor

S1080: TPT; USE TAX; EDUCATION 1/23 from Senate educ with amend #4004.
S1091: BUDGET STABILIZATION FUND; DEPOSITS

At the end of the fiscal year, the Budget Stabilization Fund balance cannot exceed 10 percent of general fund revenue for the FY, increased from 7 percent. Any monies above 10 percent must be transferred to the general fund.

First sponsor: Sen. Mesnard (R - Dist 17)


 

General Comments (all lists):

1/22: BT recommend SUPPORT

Single List Comments:

1/22: recommend SUPPORT

 

S1091: BUDGET STABILIZATION FUND; DEPOSITS 1/17 referred to Senate appro.