ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

Senate: FIN DPA 6-0-4-0 | 3rd Read 30-0-0-0

SB1348: tax corrections act of 2020

Sponsor:  Senator Mesnard, LD 17

House Engrossed

Overview

Corrects errors and obsolete language, addresses blending problems and provides clarifying changes to the tax statutes.

History

The Department of Revenue (DOR) annually reviews the statutes related to taxation and makes recommendations to correct errors, remove obsolete language and address clarity. These recommendations are then compiled into an annual tax corrections bill.

Provisions

1.    ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteSpecifies that estimated tax payments made in June of each year must be made in the same manner as a taxpayer's regular payments. (Sec. 8)

2.    Requires the estimated tax payments to be made by the last business day in June if the taxpayer is required to pay by electronic means. (Sec. 8)

3.    Removes, from the commercial lease classification exclusions, the leasing or renting of real property used for specific agricultural purposes. (Sec. 9)

4.    Specifies, for the personal property rental classification, that an exclusion applies for a parent business entity to a subsidiary business entity. (Sec. 10)

5.    Includes property that has been subdivided in the circumstances where the limited property value must be established at a level or percentage of full cash value that is comparable to that of other properties of the same or similar use. (Sec. 11)

6.    Requires a full-year or part-year resident individual to file an individual income tax return if their gross income was greater than the amount of the standard deduction allowed adjusted for inflation. (Sec 13)

7.    Requires a nonresident individual to file an individual income tax return if their gross income was greater than the amount of the standard deduction allowed adjusted for inflation and multiplied by the percentage of their Arizona gross income is of their federal adjusted gross income. (Sec. 13)

8.    Removes, from the addition to Arizona gross income and subtractions from Arizona gross income, expired  additions and subtractions related to the American Recovery and Reinvestment Act of 2009. (Secs. 14, 15, 24 and 25)

9.    Specifies that an exemption for the caretaking of a person aged 65 or older or for a stillbirth is in lieu of the dependent tax credit. (Sec. 16)

10.  Prohibits a taxpayer from claiming both an itemized deduction and a credit for the same charitable contribution even if the contribution is treated as a payment of state income tax. (Sec. 19)

11.  Repeals the individual income tax credit for construction costs of qualified environmental technology facilities. (Sec. 21)

12.  Repeals the corporate income tax credit for employment by a healthy forest enterprise. (Sec. 30)

13.  Repeals the corporate income tax credits for agricultural pollution control equipment and the donation of a school site. (Sec. 32)

14.  Contains a retroactive clause for specific sections of the bill. (Secs. 34, 36)

15.  Contains a saving clause. (Sec. 35)

16.  Makes technical and conforming changes. (Secs. 1, 2, 3, 4, 5, 6, 7, 8, 9, 12, 13, 14, 15, 16, 17, 18, 20, 22, 23, 24, 25, 26, 27, 28, 29, 31, 36)

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20.                    SB 1348

21.  Initials VP  Page 0 House Engrossed

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