|
REFERENCE TITLE: tax credits; rate reductions; suspension |
|
State of Arizona Senate Fifty-first Legislature First Regular Session 2013
|
|
SB 1299 |
|
|
|
Introduced by Senators Farley, Bradley, Gallardo, Hobbs, Jackson Jr., Landrum Taylor, Lopez, McGuire, Meza, Pancrazi: Ableser, Cajero Bedford, Tovar
|
AN ACT
amending title 42, chapter 1, Arizona Revised Statutes, by adding article 7; relating to taxation.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 42, chapter 1, Arizona Revised Statutes, is amended by adding article 7, to read:
ARTICLE 7. SUSPENSION OF CREDITS AND REDUCTIONS
42-1301. Definition
In this article, unless the context otherwise requires:
1. "K-12" means kindergarten programs and grades one through twelve.
2. "Trigger event" means a fiscal year in which one or more of the following occur:
(a) The per student state general fund expenditures for K-12 education are equal to or more than the median per student general fund expenditures for K-12 education among the fifty states, as determined by the joint legislative budget committee.
(b) Equal to or more than ninety-four per cent of the third grade students are reading at or higher than the third grade reading level as measured on the Arizona instrument to measure standards test prescribed by section 15-741.
(c) The high school graduation rate is equal to or more than ninety‑three per cent.
42-1302. Suspension of credits and reductions
A. Following every fiscal year, the superintendent of public instruction shall determine if a trigger event has occurred and report the findings of this determination to the governor, the director of the department of revenue, the president of the senate and the speaker of the house of representatives on or before December 1.
B. Notwithstanding section 42-15001, section 43-1022, paragraph 35, section 43-1111, section 43-1139 and section 43-1168, subsection A, paragraph 1, subdivision (d), until a trigger event occurs, all of the following apply:
1. The assessed valuation of class one property described in section 42‑12001 is twenty per cent of its full cash value or limited valuation, as applicable.
2. A taxpayer shall include the full amount of net long-term capital gain included in federal adjusted gross income in Arizona adjusted gross income.
3. There shall be levied, collected and paid for the taxable year on the entire Arizona taxable income of every corporation, unless exempt under section 43-1126 or 43-1201 or as otherwise provided in title 43 or by law, taxes in an amount of 6.968 per cent of net income or fifty dollars, whichever is greater.
C. The disallowance of a tax credit pursuant to this section does not affect the application of any carryover of a tax credit from a prior year.
Sec. 2. Requirements for enactment; two-thirds vote
Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.