SB1358 is a bill that seeks to clarify and amend the current law regarding Arizona income tax withholding on pension, annuity, and retirement account payments. The bill specifies that distributions from retirement accounts are eligible for Arizona income tax withholding if the distributed amount is included in the individual's Arizona gross income. It also allows payors to deny requests to withhold Arizona income tax from such payments or distributions.

The bill introduces the option for individuals to request withholding on payments from pensions, annuities, or distributions from retirement accounts, treating them as if they were wage payments for tax purposes. Additionally, it allows for such requests to be initiated, adjusted, or terminated in writing, either on paper or electronically, using forms prescribed by the Arizona Department of Revenue. The bill also defines "pension" and "retirement account" and modifies the definition of "annuity." Technical and conforming changes are made, and the bill is set to become effective on the general effective date.

Statutes affected:
Introduced Version: 43-404
Senate Engrossed Version: 43-404
Chaptered Version: 43-404