ARIZONA STATE SENATE
RESEARCH STAFF
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AUSTIN FAIRBANKS |
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LEGISLATIVE RESEARCH INTERN |
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FAREED BAILEY |
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LEGISLATIVE RESEARCH ANALYST FINANCE COMMITTEE Telephone: (602) 926 -3171 |
FINANCE COMMITTEE
DATE: February 12, 2018
SUBJECT: Strike everything amendment to S.B. 1004, relating to TPT payment; checks
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Purpose
Allows remittance of non-individual income tax payments by check.
Background
Since Tax Year 1993, the Arizona Department of Revenue (DOR) has been permitted to issue rules requiring payment of taxes, other than individual income taxes, of over $20,000 to be made by electronic funds transfer. Laws 2010, 7th Special Session, Chapter 12 instituted a civil penalty for not paying taxes via electronic funds transfer if required to do so by DOR rule. The penalty is equal to five percent of the tax not paid using electronic funds transfer, unless it is shown that the failure is due to reasonable cause and not due to willful neglect (A.R.S. § 42‑1125).
Laws 2017, Chapter 60 began to reduce the threshold at which a taxpayer is required to remit taxes via electronic funds transfer. It also allowed a taxpayer to apply to the Director of DOR (Director) annually for a waiver for electronic payment of taxes. The Director may grant the waiver if: 1) the taxpayer has no computer; 2) the taxpayer has no internet access; or 3) any other circumstance deemed worthy by the Director.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the Director to accept payment in check for the first time and issue a notice informing the taxpayer of potential future civil penalties and the option to apply for a perpetual waiver, which the Director must grant if the taxpayer does not have any delinquent taxes owed.
2. Makes technical and conforming changes.
3. Becomes effective on the general effective date.