SB1155 - 502R

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

Section 1. Section 43-1011, Arizona Revised Statutes, is amended to read:

START_STATUTE43-1011. Taxes and tax rates

A. There shall be levied, collected and paid for each taxable year taxes upon the entire taxable income of every resident of this state and upon the entire taxable income of every nonresident which is derived from sources within this state. Except as provided by subsection B of this section, the taxes shall be determined in the following manner:

1. For taxable years beginning from and after December 31, 1996 through December 31, 1997:

(a) In the case of a single person or a married person filing separately:

If taxable income is: The tax is:

$0 - $10,000 2.90% of taxable income

$10,001 - $25,000 $290, plus 3.30% of the excess over $10,000

$25,001 - $50,000 $785, plus 3.90% of the excess over $25,000

$50,001 - $150,000 $1,760, plus 4.80% of the excess over $50,000

$150,001 and over $6,560, plus 5.17% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is: The tax is:

$0 - $20,000 2.90% of taxable income

$20,001 - $50,000 $580, plus 3.30% of the excess over $20,000

$50,001 - $100,000 $1,570, plus 3.90% of the excess over $50,000

$100,001 - $300,000 $3,520, plus 4.80% of the excess over $100,000

$300,001 and over $13,120, plus 5.17% of the excess over $300,000

2. For taxable years beginning from and after December 31, 1997 through December 31, 1998:

(a) In the case of a single person or a married person filing separately:

If taxable income is: The tax is:

$0 - $10,000 2.88% of taxable income

$10,001 - $25,000 $288, plus 3.24% of the excess over $10,000

$25,001 - $50,000 $774, plus 3.82% of the excess over $25,000

$50,001 - $150,000 $1,729, plus 4.74% of the excess over $50,000

$150,001 and over $6,469, plus 5.10% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is: The tax is:

$0 - $20,000 2.88% of taxable income

$20,001 - $50,000 $576, plus 3.24% of the excess over $20,000

$50,001 - $100,000 $1,548, plus 3.82% of the excess over $50,000

$100,001 - $300,000 $3,458, plus 4.74% of the excess over $100,000

$300,001 and over $12,938, plus 5.10% of the excess over $300,000

3. For taxable years beginning from and after December 31, 1998 through December 31, 2005:

(a) In the case of a single person or a married person filing separately:

If taxable income is: The tax is:

$0 - $10,000 2.87% of taxable income

$10,001 - $25,000 $287, plus 3.20% of the excess over $10,000

$25,001 - $50,000 $767, plus 3.74% of the excess over $25,000

$50,001 - $150,000 $1,702, plus 4.72% of the excess over $50,000

$150,001 and over $6,422, plus 5.04% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is: The tax is:

$0 - $20,000 2.87% of taxable income

$20,001 - $50,000 $574, plus 3.20% of the excess over $20,000

$50,001 - $100,000 $1,534, plus 3.74% of the excess over $50,000

$100,001 - $300,000 $3,404, plus 4.72% of the excess over $100,000

$300,001 and over $12,844, plus 5.04% of the excess over $300,000

4. For taxable years beginning from and after December 31, 2005 through December 31, 2006:

(a) In the case of a single person or a married person filing separately:

If taxable income is: The tax is:

$0 - $10,000 2.73% of taxable income

$10,001 - $25,000 $273, plus 3.04% of the excess over $10,000

$25,001 - $50,000 $729, plus 3.55% of the excess over $25,000

$50,001 - $150,000 $1,617, plus 4.48% of the excess over $50,000

$150,001 and over $6,097, plus 4.79% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is: The tax is:

$0 - $20,000 2.73% of taxable income

$20,001 - $50,000 $546, plus 3.04% of the excess over $20,000

$50,001 - $100,000 $1,458, plus 3.55% of the excess over $50,000

$100,001 - $300,000 $3,233, plus 4.48% of the excess over $100,000

$300,001 and over $12,193, plus 4.79% of the excess over $300,000

5. For taxable years beginning from and after December 31, 2006:

(a) In the case of a single person or a married person filing separately:

If taxable income is: The tax is:

$0 - $10,000 2.59% of taxable income

$10,001 - $25,000 $259, plus 2.88% of the excess over $10,000

$25,001 - $50,000 $691, plus 3.36% of the excess over $25,000

$50,001 - $150,000 $1,531, plus 4.24% of the excess over $50,000

$150,001 and over $5,771, plus 4.54% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is: The tax is:

$0 - $20,000 2.59% of taxable income

$20,001 - $50,000 $518, plus 2.88% of the excess over $20,000

$50,001 - $100,000 $1,382, plus 3.36% of the excess over $50,000

$100,001 -$300,000 $3,062, plus 4.24% of the excess over $100,000

$300,001 and over $11,542, plus 4.54% of the excess over $300,000

B. If any law is enacted to increase the transaction privilege tax, as provided by title 42, chapter 5, from and after May 31, 2013 to any rate exceeding the rates in effect on May 31, 2010, the department shall reduce the rates of income tax prescribed by subsection A of this section to prevent a net increase in aggregate state tax revenues during the first twelve months that the transaction privilege tax rate increase is in effect. The income tax rate reductions shall:

1. Be applied proportionately across the respective income brackets.

2. Apply retroactively to the beginning of the first full taxable year. END_STATUTE