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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
AMENDED
tax corrections act of 2023
Purpose
Corrects errors and obsolete language, addresses blending problems and provides clarifying changes to tax statutes.
Background
The Arizona Department of Revenue (ADOR) and Legislative Council review the tax statutes for errors, obsolete language and blending problems. These recommendations are then compiled into an annual bill.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a taxpayer's confidential information to be disclosed to the Office of Economic Opportunity to perform the duties and obligations to or on behalf of the state.
2. Specifies that an examination of a taxpayer's books and records or other documents, other than to confirm or deny the refund, constitutes an audit.
3. Subjects, to the highest individual income tax rate, partners or shareholders of a business that is treated as a partnership or S corporation for federal income tax purposes that consents to be taxed at the entity level.
4. Adds shelter to the definition of services for the purposes of a qualifying foster care charitable organization.
5. Prohibits any overpayment resulting from withholdings or estimated tax payments made by a small business taxpayer from being credited or refunded unless an income tax return has been filed for the applicable tax year.
6. Requires a motor vehicle dealer to retain a copy of any nonresident registration permits for the purposes of the TPT deduction for sales of motor vehicles to nonresidents for use outside the state.
7. Removes the requirement for a public consignment auction dealer to submit a copy of the certificate used to establish entitlement to the TPT deduction for sales of motor vehicles to nonresidents for use outside the state.
8. Removes the requirement that a copy of a property tax appeal notice be served on ADOR.
9. Repeals the Client County Equipment Capitalization Fund.
10. Makes technical and conforming changes.
11. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Removes the definitions of audit and violation.
2. Reinserts the requirement for a county or municipality to transmit a copy of building permits to ADOR.
3. Removes the authority of the Director of ADOR to extend the final date for mailing an annual notice of property value for delays caused by any extenuating circumstance.
Senate Action
FIN 2/13/23 DPA 7-0-0
Prepared by Senate Research
February 14, 2023
MG/sr