The resolution SCR1014 proposes a significant change to Arizona's individual income tax structure, contingent upon voter approval. It mandates the Joint Legislative Budget Committee (JLBC) to assess state revenue metrics starting in fiscal year 2028. Specifically, for each taxable year beginning January 1, 2028, the Arizona Department of Revenue (ADOR) is required to reduce the individual income tax rate by 50% of the structural surplus determined by the JLBC. The resolution outlines definitions for key terms such as "Arizona taxpayer return," "structural surplus," and "growth limit," which will guide the implementation of these tax rate reductions.

The resolution also establishes a framework for calculating the growth limit based on ongoing state General Fund revenues, adjusted for inflation and population growth. It defines the structural surplus as the difference between ongoing revenues and expenditures, allowing for a systematic approach to tax rate adjustments. If approved by voters, this measure aims to provide tax relief by lowering the income tax rate in alignment with the state's financial performance, thereby directly impacting taxpayers in Arizona. The Secretary of State is tasked with submitting this proposition to voters in the next general election.

Statutes affected:
Introduced Version: 41-1275, 43-1015, 2027-2028, 2026-2027
Senate Engrossed Version: 41-1275, 43-1015, 2027-2028, 2026-2027