The proposed bill, if enacted, would amend current Arizona statutes by introducing a new income tax exemption for individuals under 18 years of age whose Arizona gross income is $50,000 or less for the taxable year, regardless of the source or nature of the income. This exemption would be codified in a new section, 43-1043, and would also mandate that the first $50,000 of wages paid to employees under 18 years old is not subject to withholding by employers. Additionally, the article heading of title 43, chapter 10, article 4 would be changed from "DEDUCTIONS" to "DEDUCTIONS AND EXEMPTIONS."

Furthermore, the bill requires the Arizona Department of Revenue to establish a process for verifying eligibility for this new exemption. The changes would apply to taxable years beginning after December 31, 2025. Overall, the bill aims to provide tax relief for minors and update the existing tax framework to reflect these new provisions.

Statutes affected:
Introduced Version: 43-403, 43-1043, 43-104, 42-1130, 43-1096, 43-401