The bill S.B. 1747/H.B. 2909 introduces changes to Arizona's tax laws to support the FY 2025 state budget. It caps the Credit for Corporate Contributions to School Tuition Organizations (STOs) at $135 million annually, starting in FY 2025, and expands eligibility for STO scholarships to foster care students, with a provision to prohibit these scholarships if the credit cap is unenforceable. The bill also provides guidelines for tax rate adjustments following the Qasimyar v. Maricopa County judgment, supports the Arizona Department of Revenue's tax system modernization, extends a tax exemption for certain forestry equipment, and includes emergency measures for immediate operation.

Additional amendments extend the deadline for the Department of Revenue to certify third-party service providers for sourcing transactions involving tangible personal property to January 1, 2028, and modify taxpayer and provider liabilities in case of errors. The sales tax exemption for qualifying forestry equipment is extended to December 31, 2026. The bill also increases the aggregate tax credit cap for STOs to $135 million for FY 2024-2025 and beyond, adds eligibility criteria for foster care students to receive scholarships, and includes provisions for tax anticipation notes and bonds in response to the Qasimyar v. Maricopa County tax judgment.

Statutes affected:
Introduced Version: 42-5040.01, 42-5061, 42-5159, 43-1183, 43-1504, 43-1603, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01, 28-4301, 41-1520, 20-224.06, 2024-2025, 2007-2008, 2020-2021, 2021-2022, 2022-2023, 2023-2024, 43-1184, 15-901
House Engrossed Version: 42-5040.01, 42-5061, 42-5159, 43-1183, 43-1504, 43-1603, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01, 28-4301, 41-1520, 20-224.06, 2024-2025, 2007-2008, 2020-2021, 2021-2022, 2022-2023, 2023-2024, 43-1184, 15-901
Chaptered Version: 42-5040.01, 42-5061, 42-5159, 43-1183, 43-1504, 43-1603, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01, 28-4301, 41-1520, 20-224.06, 2024-2025, 2007-2008, 2020-2021, 2021-2022, 2022-2023, 2023-2024, 43-1184, 15-901