The proposed bill would amend current statutes by requiring the Arizona Department of Revenue (ADOR) to notify the Legislature of any new interpretation or application of tax law that could adversely affect taxpayers before it is adopted. Specifically, if such a proposed change is identified, ADOR or an affected taxpayer may notify the chairpersons of the Senate Finance Committee and the House of Representatives Ways and Means Committee. Additionally, if these committees hold a hearing on the matter, ADOR must provide testimony explaining the necessity of the new interpretation or application.

Furthermore, the bill introduces a statement of legislative intent, emphasizing the goals of educating the public and policymakers about new tax interpretations, allowing for public input, increasing transparency, and ensuring that the administration of the tax code remains non-political. The bill also makes conforming changes to existing language, including the definition of "new interpretation or application" to encompass various forms of tax guidance. Overall, these updates aim to enhance taxpayer protection and legislative oversight regarding tax law changes.

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