ARIZONA HOUSE OF REPRESENTATIVES

HB 2647: internal revenue code conformity

PRIME SPONSOR: Representative Mesnard, LD 17

BILL STATUS: House Engrossed

Abstract

Relating to IRC conformity.

Provisions

1. Updates the definition of Internal Revenue Code, for income tax purposes, to include all IRC provisions that were in effect as of January 1, 2017. (Sec. 2)

a. For the purposes of TPT and use tax, updates the definition to include all provisions that were in effect as of January 1, 2018. (Sec. 1)

2. Makes conforming changes. (Sec. 1 and 2)

Current Law

Each year, the Arizona State Legislature considers amending A.R.S. § 43-105 to conform to changes made to the IRC in the prior year by updating the statutory definition of Internal Revenue Code.  These changes are made to parallel the computation of Arizona income tax and other statutory references to the amended IRC provisions.  This conformity is necessary because Arizona, like many states, requires taxpayers to use federally adjusted gross income as the starting point for state income tax assessment.

---------- DOCUMENT FOOTER ---------

Fifty-third Legislature                  HB 2647

Second Regular Session                               Version 3: House Engrossed

---------- DOCUMENT FOOTER ---------