Arizona 56th Legislature - First Regular Session Status: Passed Senate 2 R cosponsors

SB 1577 — income tax rate; reduction; surplus

Last action — FAILED

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 56th Legislature - First Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

4 added · 5 removed

Plain-language change summary

The updated version of Senate Bill 1577 includes a new focus on reducing the income tax rate in response to the state’s surplus. The reference title has been simplified and some details about its introduction have been removed. This change is important because it clarifies the bill’s intent, making it easier for people to understand that it aims to lower taxes based on the state's financial situation.

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REFERENCE TITLE:
Senate Engrossed income tax rate;
income tax rate;
surplus State of Arizona Senate Fifty-sixth Legislature First Regular Session SB 1577 Introduced by Senators Mesnard:
surplus State of Arizona Senate Fifty-sixth Legislature First Regular Session SENATE BILL 1577 AN ACT AMENDING TITLE 41, CHAPTER 7, ARTICLE 10, ARIZONA REVISED STATUTES, BY ADDING SECTION 41-1275;
Carroll, Kaiser AN ACT AMENDING TITLE 41, CHAPTER 7, ARTICLE 10, ARIZONA REVISED STATUTES, BY ADDING SECTION 41-1275;
(TEXT OF BILL BEGINS ON NEXT PAGE) - i - SB 1577 Be it enacted by the Legislature of the State of Arizona:
(TEXT OF BILL BEGINS ON NEXT PAGE) - i - S.B.
1577 Be it enacted by the Legislature of the State of Arizona:
View plain text versions (2)

How this bill changes current law

2 changes Share ↗

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill establishes a new process for determining structural surplus and mandates a reduction in individual income tax rates based on this surplus.

  • 41-1275

    41-1275. Annual ongoing state general fund revenue; joint legislative budget committee determination; definitions A. FOR FISCAL YEAR 2023-2024 AND FOR EACH FISCAL YEAR THEREAFTER, THE JOINT LEGISLATIVE BUDGET COMMITTEE SHALL DETERMINE THE FOLLOWING: 1. THE GROWTH LIMIT AND THE AMOUNT OF EXCESS STATE TAX COLLECTIONS. 2. IF ONGOING STATE GENERAL FUND REVENUES ARE MORE THAN THE GROWTH LIMIT, THE STRUCTURAL SURPLUS AND THE ARIZONA TAXPAYER RETURN. B. FOR THE PURPOSES OF THIS SECTION: 1. "ARIZONA TAXPAYER RETURN" MEANS FIFTY PERCENT OF THE STRUCTURAL SURPLUS FOR THE IMMEDIATELY FOLLOWING FISCAL YEAR. 2. "EXCESS STATE TAX COLLECTIONS" MEANS THE AMOUNT OF ONGOING STATE GENERAL FUND REVENUES THAT EXCEED THE GROWTH LIMIT FOR THE IMMEDIATELY FOLLOWING FISCAL YEAR. 3. "GROWTH LIMIT" MEANS THE ONGOING STATE GENERAL FUND REVENUES FOR FISCAL YEAR 2022-2023 AS DETERMINED BY THE JOINT LEGISLATIVE BUDGET COMMITTEE, ANNUALLY INCREASED BY THE SUM OF THE PERCENTAGE CHANGE IN INFLATION PLUS THE PERCENTAGE CHANGE IN POPULATION GROWTH. 4. "INFLATION" MEANS THE AVERAGE ANNUAL CHANGE IN THE METROPOLITAN PHOENIX CONSUMER PRICE INDEX PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS, FOR THE MOST RECENTLY ENDED CALENDAR YEAR. 5. "POPULATION GROWTH" MEANS THE YEAR-OVER-YEAR CHANGE IN TOTAL POPULATION FOR THIS STATE FOR THE MOST RECENTLY ENDED CALENDAR YEAR AS ESTIMATED BY THE UNITED STATES CENSUS BUREAU. 6. "STRUCTURAL SURPLUS" MEANS THE DIFFERENCE BETWEEN ONGOING STATE GENERAL FUND REVENUES AND ONGOING STATE GENERAL FUND EXPENDITURES AFTER ADJUSTING FOR REVENUE AND EXPENDITURE INCREASES AS ESTIMATED BY THE JOINT LEGISLATIVE BUDGET COMMITTEE.

    Introduces a new section that defines growth limits, excess tax collections, and surplus for state budgeting.

  • 43-1015

    43-1015. Individual income tax rate reduction FOR EACH TAXABLE YEAR BEGINNING FROM AND AFTER DECEMBER 31, 2023, THE DEPARTMENT SHALL REDUCE THE TAX RATE PRESCRIBED BY SECTION 43-1011 FOR THE CURRENT TAXABLE YEAR SO THAT THE AMOUNT OF THE RATE REDUCTION IS EQUAL TO THE ARIZONA TAXPAYER RETURN AS DEFINED IN SECTION 41-1275 FOR THAT TAXABLE YEAR.

    Mandates a reduction in the individual income tax rate based on the Arizona taxpayer return.

Action History

  1. FAILED

  2. DP

  3. DP

  4. House Second Reading

  5. House First Reading.

  6. Transmit to House

  7. PASSED

  8. DP

  9. DP

  10. Senate Second Reading

  11. Senate First Reading

Sponsors

Sponsorship breakdown

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1 sponsors · 2 co-sponsors · 90 not signed on · 44 voted No

Sponsors (1)

Co-sponsors (2)

Not signed on (90)

90 members have not signed on to this bill.

Show all 90 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

failed to pass

Failed 29 Yea · 31 Nay
Party YeaNayPresentNot Voting
Democrat 01800
Republican 22100
Unaffiliated 71200
Total 293100
% of votes cast 48%52%0%0%
How each member voted (60)
Member Party Vote
Amish Shah — Nay
Andres Cano — Nay
Athena Salman — Nay
Austin Smith — Yea
Barbara Parker — Yea
Ben Toma — Yea
Cory McGarr — Yea
David L. Cook — Nay
Jacqueline Parker — Yea
Jennifer Longdon — Nay
Jennifer Pawlik — Nay
Judy Schwiebert — Nay
Justin Heap — Yea
Keith Seaman — Nay
Laura Terech — Nay
Leezah Elsa Sun — Nay
Marcelino Quiñonez — Nay
Melody Hernandez — Nay
Travis W. Grantham — Yea
Alma Hernandez Democrat Nay
Analise Ortiz Democrat Nay
Cesar Aguilar Democrat Nay
Christopher Mathis Democrat Nay
Consuelo Hernandez Democrat Nay
Lorena Austin Democrat Nay
Lupe Contreras Democrat Nay
Lydia Hernandez Democrat Nay
Mae Peshlakai Democrat Nay
Mariana Sandoval Democrat Nay
Myron Tsosie Democrat Nay
Nancy Gutierrez Democrat Nay
Oscar De Los Santos Democrat Nay
Patty Contreras Democrat Nay
Quantá Crews Democrat Nay
Seth Blattman Democrat Nay
Stacey Travers Democrat Nay
Stephanie Stahl Hamilton Democrat Nay
Alexander Kolodin Republican Yea
Beverly Pingerelli Republican Yea
David Livingston Republican Yea
David Marshall, Sr. Republican Yea
Gail Griffin Republican Yea
John Gillette Republican Yea
Joseph Chaplik Republican Yea
Julie Willoughby Republican Yea
Justin Wilmeth Republican Yea
Kevin Payne Republican Yea
Laurin Hendrix Republican Yea
Leo Biasiucci Republican Yea
Lupe Diaz Republican Yea
Matt Gress Republican Nay
Michael Carbone Republican Yea
Michele Peña Republican Yea
Neal Carter Republican Yea
Quang H Nguyen Republican Yea
Rachel Keshel Republican Yea
Selina Bliss Republican Yea
Steve Montenegro Republican Yea
Teresa Martinez Republican Yea
Timothy "Tim" Dunn Republican Yea

Official roll call →

Passed

Passed 16 Yea · 13 Nay · 1 Other
Party YeaNayPresentNot Voting
Democrat 0901
Unaffiliated 6400
Republican 10000
Total 161301
% of votes cast 53%43%0%3%
How each member voted (30)
Member Party Vote
Anna Hernandez — Nay
Anthony Kern — Yea
Christine Marsh — Nay
Juan Mendez — Nay
Justine Wadsack — Yea
Ken Bennett — Yea
Raquel Terán — Nay
Sine Kerr — Yea
Sonny Borrelli — Yea
Steve Kaiser — Yea
Brian Fernandez Democrat Nay
Catherine Miranda Democrat Nay
Denise “Mitzi” Epstein Democrat Nay
Eva Burch Democrat Nay
Eva Diaz Democrat Nay
Lela Alston Democrat Nay
Priya Sundareshan Democrat Nay
Rosanna Gabaldón Democrat Not Voting
Sally Ann Gonzales Democrat Nay
Theresa Hatathlie Democrat Nay
David C. Farnsworth Republican Yea
David Gowan Republican Yea
Frank Carroll Republican Yea
J.D. Mesnard Republican Yea
Jake Hoffman Republican Yea
Janae Shamp Republican Yea
John Kavanagh Republican Yea
Thomas "T.J." Shope Republican Yea
Warren Petersen Republican Yea
Wendy Rogers Republican Yea

Official roll call →

Subjects

Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 1577?
SB 1577 is sponsored by Frank Carroll (Republican), J.D. Mesnard (Republican), and Steve Kaiser.
What is the current status of SB 1577?
This bill died with 56th Legislature - First Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 1577?
Track SB 1577 free on One Click Politics — get push/email alerts when it moves.

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Last checked for changes 3 months ago · updated continuously

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