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 must inform 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 is mandated to 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, allowing for public input, and increasing transparency regarding tax law interpretations. It also aims to ensure that the administration of the tax code remains non-political and adheres to constitutional responsibilities. The bill makes conforming changes to existing statutes and clarifies that "new interpretation or application" includes various forms of administrative rules and procedures.

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