If enacted, this bill would amend current Arizona statutes regarding individual income tax by introducing a new exemption for individuals under 18 years old. Specifically, it would exempt minors whose Arizona gross income is $50,000 or less from state individual income tax for the taxable year, regardless of the income's source or nature. Additionally, the bill would require the Arizona Department of Revenue to establish a process for verifying eligibility for this exemption. The article heading of title 43, chapter 10, article 4 would also be changed from "DEDUCTIONS" to "DEDUCTIONS AND EXEMPTIONS."

Furthermore, the bill would exclude the first $50,000 of wages paid to employees under 18 years old from the requirement for employers to withhold state income tax. The provisions of this act would apply to taxable years beginning from and after December 31, 2025. Overall, these changes aim to provide tax relief for minors and simplify the tax withholding process for employers.

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