This bill proposes to amend section 42-2078 of the Arizona Revised Statutes to enhance taxpayer protection by establishing a notification and hearing process for new interpretations or applications of tax provisions that may adversely affect taxpayers. Specifically, it requires the department or an affected taxpayer to notify the chairpersons of the relevant legislative committees before adopting any new interpretation or application. If a notice is received during a legislative session and no hearing occurs within sixty days, the new interpretation will take effect. Similarly, if the notice is received outside of a session, the same timeline applies to the next session.

Additionally, the bill clarifies the definition of "new interpretation or application" to include not only policies and procedures adopted by administrative rule but also tax rulings, tax procedures, and instructions to tax returns. The amendment also replaces the current designation "D." with "E." to maintain the structure of the statute. Overall, these changes aim to provide greater oversight and input from legislative committees regarding tax policy changes that could impact taxpayers.

Statutes affected:
Introduced Version: 42-2078