The proposed bill would amend current statutes by requiring the Arizona Department of Revenue (ADOR) to notify the Legislature if a new interpretation or application of tax law is expected to adversely affect taxpayers. Specifically, it mandates that ADOR, or an affected taxpayer, must inform the chairpersons of the Senate Finance Committee and the House of Representatives Ways and Means Committee before adopting such interpretations. Additionally, if these committees hold a hearing on the matter, ADOR is required to provide testimony explaining the necessity of the proposed changes.

The bill also makes conforming changes to the language regarding what constitutes a "new interpretation or application," clarifying that it includes policies and procedures adopted by administrative rule, tax rulings, tax procedures, or instructions to a tax return. Furthermore, it removes certain provisions, such as the authority of the committees to recommend the adoption or rejection of interpretations and the stipulation that a new interpretation takes effect after 60 days if no hearing is held. Overall, these updates aim to enhance transparency and accountability in the application of tax laws.

Statutes affected:
Introduced Version: 42-2078
Senate Engrossed Version: 42-2078