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 as 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 stipulates that the JLBC will evaluate the growth limit and any excess state tax collections annually, ensuring that if ongoing state revenues exceed the growth limit, the structural surplus and corresponding taxpayer return are calculated. 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. This initiative aims to provide tax relief to Arizona residents by adjusting the income tax rate based on the state's financial performance.

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