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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
taxation; 2023-2024.
Purpose
Makes session law changes relating to taxation necessary to implement the FY 2024 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
S.B. 1534 contains the budget reconciliation provisions for changes relating to taxation.
Provisions
1. Declares the Legislature's intent that the total amount of fees that the Arizona Department of Revenue must assess on the following entities in FY 2024 to implement an integrated tax system modernization project may not exceed $6,597,200 and must be assessed in proportion to the aggregate amount of specified tax revenues distributed for the fiscal year two years preceding the current fiscal year:
a) counties, cities and towns that receive state shared revenues;
b) the Maricopa County council of governments; and
c) Maricopa County and Pima County regional transportation authorities.
2. Declares the Legislature's intent that a county's, city's or town's population in the most recent census must be used as the basis for apportioning the assessment.
3. Declares the Legislature's intent that the amount of the 0.6 percent additional education transaction privilege tax revenues transferred for the integrated tax system modernization project not exceed $800,000 in FY 2024.
4. Declares the Legislature's intent that the amount of marijuana excise tax revenues transferred for the integrated tax system modernization project not exceed $178,100 in FY 2024.
5. Becomes effective on the general effective date.
Prepared by Senate Research
January 30, 2023
MG/sr