REFERENCE TITLE: small businesses; income tax; rate

State of Arizona

Senate

Fifty-sixth Legislature

First Regular Session

2023

SB 1260

Introduced by

Senator Mesnard

An Act

amending section 43-1711, Arizona Revised Statutes; relating to small business income tax.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 43-1711, Arizona Revised Statutes, is amended to read:

START_STATUTE43-1711. Taxes and tax rate

If an Arizona small business taxpayer makes the election pursuant to section 43-302, there shall be levied, collected and paid for each taxable year on the Arizona small business taxable income taxes as determined in the following manner:

1. For taxable years beginning from and after December 31, 2020 through December 31, 2021, an amount equal to 3.5% of the Arizona small business taxable income.

2. For taxable years beginning from and after December 31, 2021 through December 31, 2022, an amount equal to 3.0% of the Arizona small business taxable income.

3. For taxable years beginning from and after December 31, 2022 through December 31, 2024, an amount equal to 2.8% of the Arizona small business taxable income.

4. 3. For taxable years beginning from and after December 31, 2024 2022, an amount equal to 2.5% of the Arizona small business taxable income. END_STATUTE

Sec. 2. Retroactivity

This act applies retroactively to taxable years beginning from and after December 31, 2022.