If enacted, this bill would amend current Arizona statutes by adding new provisions that require the Joint Legislative Budget Committee (JLBC) to determine specific state revenue metrics starting in fiscal year 2025-2026. The JLBC would assess the growth limit, excess state tax collections, structural surplus, and the Arizona taxpayer return, which is defined as fifty percent of the structural surplus for the following fiscal year. Additionally, the bill introduces definitions for key terms such as "structural surplus," "excess state tax collections," "growth limit," "inflation," and "population growth."

Furthermore, the bill mandates that for each taxable year beginning January 1, 2026, the Arizona Department of Revenue must reduce the individual income tax rate by an amount equal to the Arizona taxpayer return. This change would effectively link tax rate reductions to the state's financial performance, specifically when there is a structural surplus, thereby potentially impacting state revenue collections and the General Fund.

Statutes affected:
Introduced Version: 41-1275, 43-1015, 2025-2026, 2024-2025