ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: WM DP 5-3-0-2| 3rd Read 31-27-2-0

Senate: FIN DP 5-3-2-0| 3rd Read 16-12-2-0 

HCM2004: urging Congress; reporting requirements; taxes

Sponsor: Representative Bolick, LD 20

Transmitted to the Secretary of State

Overview

Urges Congress to oppose the reporting requirements included in the Biden administration tax increase proposal.

History

The Build Back Better act, proposed August 27, 2021, includes a provision requiring third-party network transactions exceeding $600 to be reported on tax returns (U.S. Congress HB5376 § 138402).

The American Rescue Plan Act, enacted into law March 3, 2021, also includes a provision mandating the report of third-party network transactions exceeding $600 (Public Law 117-2 § 9674).

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteProvides reasoning for why reporting requirements in the Biden administration tax increase proposal are burdensome and undue, including:

a)   Requiring peer-to-peer transaction apps and financial institutions to report inflows and outflows of $600.00 would result in issues regarding privacy, compliance costs and negative impacts on low-income communities;

b)   The low threshold for reporting would be harmful to individuals and small businesses required to report financial data, due to the vulnerability of the IRS to cyberattacks; and

c)   The increased reporting requirements would be costly to financial institutions, who would require more staffing and costs to meet this proposal's demand.

2.   Directs Congress to oppose the reporting requirements in the Biden administration's tax increase proposal for FY 2022.

3.   Requires the Arizona Secretary of State to transmit copies of this memorial to:

a)   The President of the United States;

b)   The President of the United States Senate;

c)   The Speaker of the United States House of Representatives; and

d)   Each member of Congress from the State of Arizona.

e)    

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h)                           HCM 2004

i)   Initials VP/ES  Page 0 Transmitted

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