This bill proposes updates to section 43-1111 of the Arizona Revised Statutes regarding corporate income tax. The current law, which levies a tax on the entire Arizona taxable income of corporations, will see the deletion of the phrase "fifty dollars" and the percentage rates will be modified to replace "per cent" with "percent" for clarity. The tax rates for taxable years will be adjusted to 6.968 percent for years through December 31, 2013, decreasing incrementally to 4.9 percent 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 changes will apply to taxable years beginning after December 31, 2025, and the act will only take effect upon a two-thirds affirmative vote from both houses of the legislature and the governor's signature or a subsequent three-fourths vote if vetoed.

Statutes affected:
Introduced Version: 43-1111