This bill proposes amendments to section 43-1111 of the Arizona Revised Statutes, which governs corporate income tax. The current law, which establishes a tax on the entire Arizona taxable income of corporations, will see the deletion of the phrase "fifty dollars" and the percentage rates for taxable years from 2013 to 2016, replacing them with the term "$50" and the word "percent" for clarity. The tax rates for net income will be updated to reflect a gradual decrease, with the new rates set at 6.968% for taxable years through December 31, 2013, 6.5% for 2014, 6.0% for 2015, 5.5% for 2016, and 4.9% for years beginning after December 31, 2016.

Additionally, the bill introduces a new provision stating that corporations with fifty or more employees, which are not otherwise exempt, will have a minimum tax amount of $1,000. The amendments will apply to taxable years beginning after December 31, 2025, and the act will only take effect upon the affirmative vote of at least two-thirds of the members of each house of the legislature, or immediately upon the governor's signature, or following a three-fourths vote if vetoed.

Statutes affected:
Introduced Version: 43-1111