The proposed bill would amend current statutes by requiring the Arizona Department of Revenue (ADOR) to notify the Legislature of any proposed new interpretation or application of tax law that could adversely affect taxpayers before it is adopted. Specifically, it allows either ADOR or an affected taxpayer to inform the chairpersons of the Senate Finance Committee and the House of Representatives Ways and Means Committee of such proposals. If a hearing is held by these committees, ADOR must 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 also removes certain stipulations regarding the authority of the committees to recommend actions to ADOR and the timeline for the adoption of new interpretations 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