ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

Senate: FIN DPA/SE 4-3-0-0 | 3rd Read 16-13-1-0

House: WM DP 6-4-0-0

SB 1281: income tax; rebate

Sponsor: Senator Shamp, LD 29

Caucus & COW

Overview

Requires the Department of Revenue (DOR) to issue a onetime individual income tax rebate for Tax Year (TY) 2022 and prescribes the amount and administrative procedures.

History

The individual income tax rate is levied at a single rate of 2.5% beginning with TY23 on the entire taxable income of every resident of this state and on the entire taxable income of every nonresident that is derived from sources within this state. (A.R.S. § 43-1011; Version 2) The federal adjusted gross income is the starting point for Arizona's individual income tax, which is subject to various additions, subtractions and deductions, as applicable. (A.R.S. Title 43, Chapter 10)

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal NoteRequires DOR to issue a onetime individual income tax rebate for TY22 if a taxpayer is:

a)   A resident of Arizona as of December 31, 2022; and

b)   Files an individual income tax return or an extension for TY22. (Sec. 1)

2.   Sets the rebate amount at:

a)   $200 for a single person or a married couple filing separately; or

b)   $400 for a married couple filing jointly or a single person who is a head of household. (Sec. 1)

3.   Outlines who is allowed to receive the rebate if the taxpayer is deceased. (Sec. 1)

4.   Requires DOR to pay all rebates within 90 days after the effective date. (Sec. 1)

5.   Allows a taxpayer who does not receive the rebate within one year to file an online claim application, as prescribed by DOR, to receive the rebate. (Sec. 1)

6.   Provides what information the claim application must contain and that DOR must review and verify each claim application. (Sec. 1)

7.   Provides that any appealable agency action relating to the individual income tax rebates is subject to the uniform administrative hearing procedures. (Sec. 1)

8.   Requires the DOR Director, on or before the 15th month after the effective date, to report the following information to President of the Senate, Speaker of the House of Representatives and the Director of the Joint Legislative Budget Committee:

a)   The total dollar amount paid as rebates;

b)   The administrative cost associated with the rebate; and

c)   The number, if any, of the rebate claims filed. (Sec. 1)

9.   Repeals the individual income tax rebate requirements on January 1, 2030. (Sec. 1)

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13.                    SB 1281

14.  Initials VP  Page 0 CaucusCOW

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