The proposed bill would amend current statutes by introducing new requirements for the Governor's Office of Strategic Planning and Budgeting (OSPB) and the Joint Legislative Budget Committee (JLBC) to annually evaluate the fiscal impact of conforming Arizona law to changes in the U.S. Internal Revenue Code (IRC). Specifically, if the evaluation indicates that such conformity would result in an increase or decrease of income tax revenues of $100 million or more, the Governor must determine if a special session of the Legislature is necessary to address these changes. This new language would be inserted into the statutes as sections A and B under the relevant title.

Additionally, the bill would modify existing reporting requirements for the Arizona Department of Revenue (ADOR). It would require the Director of ADOR to submit an initial report summarizing revisions to the IRC by September 30 each year, followed by a final report by January 10. The bill also makes technical changes and removes a prohibition against ADOR prescribing tax return forms that are inconsistent with current statutes. Overall, these updates aim to enhance the legislative process regarding tax conformity and improve the reporting structure of tax-related changes.

Statutes affected:
Introduced Version: 41-112, 43-323
House Engrossed Version: 41-112, 42-1005, 43-323