HB 4029 — income tax changes; notification; forms

Fifty-seventhHouse LegislatureEngrossed Waysincome &tax Meanschanges; Second Regular Session H.B.

4029notification; PROPOSED HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.

forms State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session HOUSE BILL 4029 (ReferenceAN toACT printedAMENDING bill)TITLE Amendment41, instructionCHAPTER key:1, ARTICLE 1, ARIZONA REVISED STATUTES, BY ADDING SECTION 41-112;

[GREENAMENDING UNDERLININGSECTIONS IN42-1005 BRACKETS]AND indicates43-323, textARIZONA addedREVISED toSTATUTES; statute or previously enacted session law.

[GreenRELATING underliningTO inINCOME brackets]TAX. indicates text added to new session law or text restoring existing law.

[GREEN(TEXT STRIKEOUTOF INBILL BRACKETS]BEGINS indicatesON newNEXT textPAGE) removed- fromi statute- orH.B. previously enacted session law.

[Green4029 strikeoutBe init brackets]enacted indicatesby textthe removedLegislature fromof existingthe statute,State previouslyof enactedArizona: session law or new session law.

<<Green carets>> indicate a section added to the bill.

<<Green strikeout in carets>> indicates a section removed from the bill.

The bill as proposed to be amended is reprinted as follows:

EACH YEAR, THE GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING AND THE JOINT LEGISLATIVE BUDGET COMMITTEE SHALL [INDIVIDUALLY]INDIVIDUALLY EVALUATE AND DETERMINE IF CONFORMING THE LAWS OF THIS STATE WITH CHANGES MADE TO THE INTERNAL REVENUE CODE FOR CALCULATING FEDERAL ADJUSTED GROSS INCOME FOR THE PURPOSE OF CALCULATING TAXABLE INCOME IN THIS STATE WILL RESULT IN AN INCREASE OR DECREASE OF INCOME TAX REVENUES OF $100,000,000 OR MORE COMPARED TO THE AMOUNT OF INCOME TAX REVENUES THAT WOULD BE COLLECTED IF THE LAWS OF THIS STATE DID NOT CONFORM TO THE INTERNAL REVENUE CODE CHANGES.

BEFORE SEPTEMBER 30 OF EACH YEAR[,YEAR THEIN GOVERNOR,WHICH BASED ON] [IN WHICH] THE EVALUATION MADE [BYBY EITHER THE GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING OR THE JOINT LEGISLATIVE BUDGET COMMITTEE]COMMITTEE PURSUANT TO SUBSECTION A OF THIS SECTION[,SECTION ]EXCEEDS [EXCEEDS AN INCREASE OR DECREASE OF INCOME TAX REVENUES OF $100,000,000 OR MORE, THE GOVERNOR]GOVERNOR SHALL DETERMINE IF A SPECIAL SESSION OF THE LEGISLATURE IS NECESSARY TO CONFORM THE LAWS OF THIS STATE TO THE CHANGES IN THE INTERNAL REVENUE CODE AND SHALL NOTIFY IN WRITING THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES OF THAT DETERMINATION AND THE REASONS THAT SUPPORT THE DETERMINATION.

HouseSec. Amendments to H.B.

4029 <<Sec.

Make such administrative rules as [he]he [THETHE DIRECTOR]DIRECTOR deems necessary and proper to effectively administer the department and enforce this title and title 43.

On or before November 15 of each year[,]year, issue a written report to the governor and legislature concerning the department's activities during the year.

In any election year[,]year, a copy of this report shall be made available to the governor-elect and to the legislature-elect.

On or before December 15 of each year[,]year, issue a supplemental report [which]which [THAT]THAT shall also contain proposed legislation recommended by the department for the improvement of the system of taxation in [the]the [THIS]THIS state.

In addition to the report required by paragraph 2 of this subsection, on or before November 15 of each year[,]year, issue a written report to the governor and legislature detailing the approximate costs in lost revenue for all state tax expenditures in effect at the time of the report.

For the purpose of this paragraph, "tax expenditure" means any tax provision in state law [which]which [THAT]THAT exempts, in whole or in part, any persons,- income,1 goods,- servicesH.B. or property from the impact of established taxes[,] including deductions, subtractions, exclusions, exemptions, allowances and credits.

4029 persons, income, goods, services or property from the impact of established taxes, including deductions, subtractions, exclusions, exemptions, allowances and credits.

[Annually,]Annually, On or before [JanuaryJanuary 10]10 [SEPTEMBERSEPTEMBER 30 OF EACH YEAR],YEAR, prepare and submit to the legislature [aa ]AN [ANINITIAL INITIAL] report containing a summary of all the revisions made to the internal revenue code during the preceding calendar year [ANDAND ON OR BEFORE JANUARY 10 OF EACH YEAR, SUBMIT A FINAL REPORT TO THE LEGISLATURE].LEGISLATURE.

Provide [such]such assistance to the governor and the legislature as they may require.

Delegate [such]such administrative functions, duties or powers as [he]he [THETHE DIRECTOR]DIRECTOR deems necessary to carry out the efficient operation of the department.

The director may enter into an agreement with the taxing authority of any state [which]which [THAT]THAT imposes a tax on or measured by income to provide that compensation paid in that state to residents of this state is exempt in that state from liability for income tax, the requirement for filing a tax return and withholding tax from compensation.

Compensation paid in this state to residents of that state is reciprocally exempt from the requirements of title 43.>>43. -2- House Amendments to H.B.

4029 Sec.

3.- 2 - H.B.

4029 3.

An individual income tax preparer who prepares more than ten original income tax returns that are timely filed during any taxable year that begins from and after December 31, 2017 shall file electronically all -3-individual Housetax Amendmentsreturns toprepared H.B.by that tax preparer, for that taxable year and each subsequent taxable year.

4029 individual tax returns prepared by that tax preparer, for that taxable year and each subsequent taxable year.

G.- 3 - H.B.

4029 G.

Enroll- and4 engross- to conform Amend title to conform JUSTIN OLSON 4029OLSON.docx 02/09/2026 5:44 PM C:

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