This bill proposes several updates to the Arizona Revised Statutes regarding corporate income tax. It extends the timeframe for certain provisions from December 31, 2016, to December 31, 2026, and introduces new methods for apportioning business income for taxpayers engaged in air commerce. Specifically, it modifies the calculation of income apportionment by incorporating a new formula that includes property, payroll, and sales factors. Additionally, it clarifies the criteria for determining the location of sales for various types of transactions, including services, real property, and intangible assets, with specific guidelines for how these sales are attributed to the state.

Furthermore, the bill removes outdated language and adds new definitions and rules to enhance clarity and compliance. It establishes a framework for determining the market for sales based on the location of the taxpayer's business activities and the nature of the transactions. The Department is also tasked with adopting necessary rules to implement these changes effectively. Overall, the bill aims to modernize the corporate income tax framework in Arizona, ensuring it reflects current business practices and economic realities.

Statutes affected:
Introduced Version: 43-1139, 43-1147, 43-947