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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
tax credit review; committee; repeal
Purpose
Requires the Joint Legislative Income Tax Credit Review Committee (Committee) to meet at least annually. Requires any new income tax credit to be enacted with a repeal date.
Background
The Committee is
tasked with determining the original purpose of existing tax credits (credits) and
establishing a standard for evaluating and measuring the success or failure of
the credits. This may include: 1) the history, rationale and estimated revenue
impact of the credit;
2) whether the credit has provided a benefit to Arizona; and 3) whether the
credit is unnecessarily complex in the application, administration and approval
process. After reviewing the credit, the Committee recommends whether the
credit should be amended, repealed or retained. The Committee reports these
findings to the President of the Senate, the Speaker of the House of
Representatives and the Governor; a copy of the report is provided to the Director
of the Arizona State Library, Archives and Public Records. The Committee
terminates on July 1, 2022 (A.R.S.
§ 43-221).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the Committee to meet at least annually and on the call of the Committee chairperson.
2. Requires the enabling legislation of any new individual or corporate income credit to include a specific repeal date for the credit that is from and after December 31 of the review year.
3. Requires Legislative Council staff to, if necessary, prepare proposed legislation for consideration in the next legislative session based on the recommendations of the Committee.
4. Allows the Committee to review the new credit before the fifth full calendar year following the date the credit is enacted.
5. Makes technical and conforming changes.
6. Becomes effective on the general effective date.
Prepared by Senate Research
February 18, 2019
CS/LC/kja