REFERENCE TITLE: conformity; internal revenue code; rates

State of Arizona Senate Fifty-fourth Legislature First Regular Session 2019

SB 1143

Introduced by Senators Mesnard: Leach, Livingston

 

AN ACT

 

Providing for conformity with the internal revenue code for taxable year 2018.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

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

Section 1.  Definition of internal revenue code; individual income tax rates; taxable year 2018; delayed repeal

A.  Notwithstanding sections 42‑1001 and 43‑105, Arizona Revised Statutes, for the purposes of computing income tax pursuant to this title, for the taxable year beginning from and after December 31, 2017 through December 31, 2018, "internal revenue code" means the United States internal revenue code of 1986, as amended, in effect on January 1, 2018, including those provisions that became effective during 2017 with the specific adoption of all retroactive effective dates, and including those provisions of the bipartisan budget act of 2018 (P.L. 115‑123) and the consolidated appropriations act, 2018 (P.L. 115‑141) that are retroactively effective during taxable years beginning from and after December 31, 2017 through December 31, 2018.

B.  Notwithstanding section 43‑1011, subsection A, paragraph 5, Arizona Revised Statutes, for the taxable year beginning from and after December 31, 2017 through December 31, 2018, the department shall reduce the income tax rates provided in section 43‑1011, subsection A, paragraph 5, Arizona Revised Statutes, by 0.11 percentage points.  For taxable years beginning from and after December 31, 2018, the income tax rates provided in section 43‑1011, subsection A, paragraph 5, Arizona Revised Statutes, apply.

C.  This section is repealed from and after December 31, 2019.

Sec. 2.  Retroactivity

This act applies retroactively to taxable years beginning from and after December 31, 2017.

Sec. 3.  Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.