4/13/21
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BILL # SB 1752 |
TITLE: |
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SPONSOR: Leach |
STATUS: As Amended by House APPROP |
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PREPARED BY: Lydia Chew |
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The House APPROP strike-everything amendment to SB 1752 would conform Arizona tax statutes to the Internal Revenue Code, to reflect changes from the Families First Coronavirus Response Act (FFCRA), Coronavirus Aid, Relief, and Economic Security (CARES) Act, Paycheck Protection Program Flexibility Act (PPP Flexibility Act), Consolidated Appropriations Act, 2021 (CAA), and American Rescue Plan Act (ARP) adopted by the U.S. Congress.
Estimated Impact
We estimate that conforming to the changes made in the FFCRA, CARES Act, PPP Flexibility Act, CAA, and ARP would reduce General Fund income tax collections one-time by $(624.8) million over the next several years.
Conformity estimates by federal tax provision are displayed in Table 1 on the following page.
Table 1 summarizes the state revenue impact of conformity for CARES Act, CAA, and ARP provisions. We do not anticipate that conforming to the FFCRA or PPP Flexibility Act would have an impact on Arizona revenues.
The JLBC Staff derived the $566.9 million estimate for the CARES Act provisions by prorating the nationwide Joint Committee on Taxation (JCT) information.
DOR estimates that the cost of conforming to the CARES Act provisions is $(547.7) million. DOR has not released information about the methodology used to reach this figure.
Table 1 also reflects the JLBC and DOR estimates of $27.9 million for the CAA provisions, as well as the JLBC estimate of $30.0 million for the ARP provision. The ARP estimate is based on Arizona-specific information, rather than prorating the JCT nationwide scoring.
Local Government Impact
Each year, incorporated cities and towns receive 15% of state income tax collections from 2 years prior. For this reason, SB 1752 would decrease local government distributions one-time by $(93.7) million 2 years after the General Fund impact.
(Continued)
4/13/21