REVISED
ARIZONA STATE SENATE
RESEARCH STAFF
MOLLY GRAVER |
LEGISLATIVE RESEARCH ANALYST FINANCE COMMITTEE Telephone: (602) 926-3171 |
 
TO:                                   MEMBERS OF THE SENATE
                                              FINANCE COMMITTEE
DATE:                       February 24, 2021
SUBJECT:           Strike everything amendment to S.B. 1252, relating to corporate income tax; subtraction
 
Purpose
Requires, for taxable years beginning January 1, 2022, a corporation's first $100,000 of Arizona gross income to be subtracted from Arizona gross income when computing a corporation's Arizona taxable income.
Background
The corporate income tax is levied on corporations that engage in business within Arizona. Arizona gross income for a corporation is the same as the corporation's federal taxable income for the taxable year. Current statute authorizes various amounts to be added or subtracted when computing a corporation's Arizona taxable income (A.R.S.     43-1101; 43-1121; and 43-1122).
The Joint Legislative Budget Committee fiscal note estimates that S.B. 1252 would result in a state General Fund revenue loss of $(32.2) million, beginning in FY 2023. The fiscal note states that the estimate is uncertain due to data limitations (JLBC fiscal note).
Provisions
1.   Requires, for taxable years beginning January 1, 2022, a corporation's first $100,000 of Arizona gross income to be subtracted from Arizona gross income when computing a corporation's Arizona taxable income.
2.   Becomes effective on the general effective date.
Revisions
  Updates the fiscal impact statement.