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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
House: WM DPA 5-4-0-0 |
HB 2918: tax rates; reductions
Sponsor: Representative Olson, LD 10
House Engrossed
Overview
Sets the qualifying tax rates for tax year 2025, lowers the tax rate to 4.93% for specified transaction privilege tax (TPT) classifications and the income tax rate to 2.47% for individuals, estates and trusts and small businesses.
History
Each year, on or before February 15, the joint legislative budget committee (JLBC) is required to compute the truth in taxation rates for equalization assistance. The computation is done by following a formula outlined in statute. (A.R.S. § 41-1276)
The tax rate for the following transaction privilege classifications is 5%: 1) transporting; 2) utilities; 3) telecommunications; 4) pipeline; 5) private car line; 6) publication; 7) job printing; 8) prime contracting; 9) amusement; 10) restaurant; 11) personal property rental; and 12) retail (A.R.S. § 42-5010).
The income tax rate for individuals, estates and trusts and small businesses is 2.5%. (A.R.S. §§ 43-1011, 43-1311 and 43-1711)
1. Sets the tax year 2025 qualifying tax rates. (Sec. 1)
2. Reduces the tax rate for specified TPT classifications to 4.93%. (Sec. 2)
3. Reduces the income tax rate for individuals, estates and trusts and small businesses to 2.47% beginning January 1, 2026. (Sec. 3)
4. Makes technical and conforming changes. (Sec. 1, 2, 3)
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HB 2918
Initials VP Page 0 House Engrossed
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