This bill proposes updates to current statutes regarding the Arizona Department of Revenue's (ADOR) notification and testimony requirements when a new interpretation or application of tax law may adversely affect taxpayers. Specifically, it mandates that if such a proposed change is identified, ADOR must notify the chairpersons of the Senate Finance Committee and the House of Representatives Ways and Means Committee before the change is adopted. Additionally, if these committees hold a hearing on the matter, ADOR is required to provide testimony explaining the necessity of the new interpretation or application.

The bill also makes conforming changes to existing language, including the replacement of the term "D." with "E." in the relevant section and clarifying 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