The proposed bill, HB2875, amends Arizona Revised Statutes section 42-1129 to clarify the timing of electronic tax payments. Under the new law, an electronic payment is considered made at the moment the taxpayer successfully authorizes the electronic funds transfer (EFT) from their financial institution to the Arizona Department of Revenue (ADOR). This is evidenced by a confirmation issued by ADOR, the taxpayer's financial institution, or a vendor certified by ADOR. Additionally, the bill allows ADOR to abate late payment penalties until December 31, 2024, if the taxpayer can provide reasonable evidence of a timely EFT authorization.

Furthermore, the bill exempts ADOR from the usual rulemaking requirements for one year following its effective date. This contrasts with the current law, which requires taxpayers to furnish evidence that an electronic payment was remitted on or before the due date without specifying the timing of the payment based on the authorization of the EFT. Overall, the bill aims to streamline the process for electronic tax payments and provide relief from penalties under certain conditions.

Statutes affected:
Introduced Version: 42-1129
House Engrossed Version: 42-1129
Chaptered Version: 42-1129