If enacted, this bill would amend several sections of the Arizona Revised Statutes to adjust tax rates and the formula for calculating truth in taxation rates. Specifically, it would modify the existing formula by reducing the percentage determined for 2025 by 1.2015%. The bill would also lower the transaction privilege tax (TPT) rate for specified classifications from the current 5% to 4.93%, and it would reduce the income tax rate for individuals, estates, trusts, and small businesses from 2.5% to 2.47%, effective January 1, 2026.

Additionally, the bill would make technical and conforming changes to ensure consistency across the statutes. It would replace outdated figures for qualifying tax rates for the 2025 tax year and adjust the income tax brackets accordingly. The changes aim to provide tax relief and streamline the taxation process in Arizona, reflecting a shift in fiscal policy towards lower tax rates for individuals and businesses.

Statutes affected:
Introduced Version: 41-1276, 42-5010, 43-1011, 43-1311, 43-1711, 15-971, 42-17151, 15-447, 42-5008.01, 42-5070, 42-5076, 42-5005, 42-5072, 42-5069, 42-5029, 42-5075, 42-5032.02, 43-243, 43-244