Signed by Governor Doug Ducey

Vote Smart's Synopsis:

Vote to pass a bill that amends tax code to establish a 4.5 percent cap on the marginal rate.

Highlights:

• Defines the municipal firefighter cancer reimbursement fund to consist of monies deposited in the fund and administered by the commissioner (Sec. 1A).

• Defines the veterans’ income tax settlement fund as consisting of monies appropriated by the legislature and other monies donated or accrued to the fund (Sec. 5).

• Requires the commission to annually distribute the fund monies based on the amount the individual compensation and benefits paid for (Sec. 1C).

• Requires the commission to assess and collect fees from cities and towns for the fund starting June 30, 2021 (Sec. 1).

• Requires the department to credit payments of estimated tax to an estimated tax clearing account and each month transfer all monies in the estimated tax clearing account to a fund designated as the severance tax clearing account (Sec. 2).

• Prohibits taxable income that is subject to the income tax surcharge to exceed 4.5% for each taxable year beginning on December 31, 2020 (Sec. 4).

• Authorizes a veteran, if deceased, their spouse, or personal representative to file a claim for a settlement payment for any period of active duty (Sec. 6).

• Requires the claim for a settlement payment to include evidence of the veteran’s eligibility for the claim (Sec. 6).

• Requires the director of the department of revenue to report the following to the senate appropriations and finance committees from October 2017 through 2023 (Sec. 7):

• Estimates of the amount of state income tax withholdings subject to payments;

• The number of veterans affected by withholdings subject to payments;

• Expenditures from the veterans’ income tax settlement fund during the previous fiscal year;

• Anticipated expenditures from the veterans’ income tax settlement fund during the current fiscal year; and

• Anticipated appropriations to the fund necessary to meet payments in the next fiscal year.

• Authorizes the director of the Arizona department of agriculture to continue to increase or lower existing fees (Sec. 10).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends tax code to establish a 4.5 percent cap on the marginal rate.

Highlights:

• Defines the municipal firefighter cancer reimbursement fund to consist of monies deposited in the fund and administered by the commissioner (Sec. 1A).

• Defines the veterans’ income tax settlement fund as consisting of monies appropriated by the legislature and other monies donated or accrued to the fund (Sec. 5).

• Requires the commission to annually distribute the fund monies based on the amount the individual compensation and benefits paid for (Sec. 1C).

• Requires the commission to assess and collect fees from cities and towns for the fund starting June 30, 2021 (Sec. 1).

• Requires the department to credit payments of estimated tax to an estimated tax clearing account and each month transfer all monies in the estimated tax clearing account to a fund designated as the severance tax clearing account (Sec. 2).

• Prohibits taxable income that is subject to the income tax surcharge to exceed 4.5% for each taxable year beginning on December 31, 2020 (Sec. 4).

• Authorizes a veteran, if deceased, their spouse, or personal representative to file a claim for a settlement payment for any period of active duty (Sec. 6).

• Requires the claim for a settlement payment to include evidence of the veteran’s eligibility for the claim (Sec. 6).

• Requires the director of the department of revenue to report the following to the senate appropriations and finance committees from October 2017 through 2023 (Sec. 7):

• Estimates of the amount of state income tax withholdings subject to payments;

• The number of veterans affected by withholdings subject to payments;

• Expenditures from the veterans’ income tax settlement fund during the previous fiscal year;

• Anticipated expenditures from the veterans’ income tax settlement fund during the current fiscal year; and

• Anticipated appropriations to the fund necessary to meet payments in the next fiscal year.

• Authorizes the director of the Arizona department of agriculture to continue to increase or lower existing fees (Sec. 10).

Full Bill Text