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 lowering the income tax rate based on the state's financial performance. It establishes a framework for calculating the tax rate reduction, which will be based on the difference between ongoing state revenues and expenditures, adjusted for inflation and population growth. The Secretary of State is tasked with submitting this measure to voters in the next general election, and it will only take effect if approved by the electorate and proclaimed by the Governor.

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