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 defines key terms such as "Arizona taxpayer return," "structural surplus," and "growth limit," which will guide the implementation of these tax rate reductions.

The resolution aims to provide tax relief to Arizona residents by linking tax rate reductions directly to the state's financial performance. It establishes a framework for calculating the structural surplus, which is the difference between ongoing state revenues and expenditures, and sets a growth limit based on inflation and population growth. If approved by voters, this measure will take effect upon proclamation by the Governor, thereby allowing for a more responsive tax system that adjusts according to the state's economic conditions.

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