This bill proposes updates to the Arizona Revised Statutes, specifically section 42-2078, to enhance taxpayer protection by requiring the Arizona Department of Revenue (ADOR) to notify the Legislature of any proposed interpretations or applications of tax law that may adversely affect taxpayers before they are adopted. The bill allows affected taxpayers to also notify the relevant legislative committees. If a hearing is held by the Senate Finance Committee and the House of Representatives Ways and Means Committee regarding the proposed changes, ADOR is mandated to provide testimony explaining the necessity of the new interpretation or application.

Additionally, the bill 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. The bill removes certain stipulations, such as the authority of legislative committees to recommend the adoption or rejection of proposed interpretations and the requirement for new applications to take effect after 60 days if no hearing is held. Overall, these changes aim to increase transparency and accountability in the administration of tax law.

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