The proposed bill, if enacted, would amend current statutes by adding a requirement for the Arizona Department of Revenue (ADOR) to notify the Legislature when a new interpretation or application of tax law is expected to adversely affect taxpayers. Specifically, it mandates that ADOR, or an affected taxpayer, must inform the chairpersons of the Senate Finance Committee and the House of Representatives Ways and Means Committee before such interpretations are adopted. Additionally, if a hearing is held regarding the impact of the proposed changes, ADOR is required to provide testimony explaining the necessity of the new interpretation or application.

Furthermore, the bill makes conforming changes to existing language, including the reclassification of a section from D to E, and clarifies that "new interpretation or application" encompasses policies and procedures adopted by administrative rule, tax rulings, tax procedures, or instructions to a tax return. Overall, these updates aim to enhance transparency and protect taxpayers by ensuring legislative oversight of significant changes in tax law interpretation.

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