Bill Text: AZ HCR2043 | 2011 | Fiftieth Legislature 1st Regular | Introduced
Bill Title: Income tax surcharges; education
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-02-07 - Introduced [HCR2043 Detail]
Download: Arizona-2011-HCR2043-Introduced.html
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REFERENCE TITLE: income tax surcharges; education |
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State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
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HCR 2043 |
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Introduced by Representative Chabin
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A CONCURRENT RESOLUTION
enacting and ordering the submission to the people of a measure relating to individual and corporate surtaxes.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it resolved by the House of Representatives of the State of Arizona, the Senate concurring:
1. Under the power of the referendum, as vested in the Legislature, the following measure, relating to individual and corporate surtaxes, is enacted to become valid as a law if approved by the voters and on proclamation of the Governor:
an act
amending title 43, Arizona Revised Statutes, by adding chapter 11.1; relating to individual and corporate surtaxes.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 43, Arizona Revised Statutes, is amended by adding chapter 11.1, to read:
CHAPTER 11.1
INDIVIDUAL AND CORPORATE SURTAXES
ARTICLE 1. GENERAL PROVISIONS
43-1195. Individual income surtax
A. In addition to the tax prescribed by section 43-1011 and the surtax prescribed by section 43-1195.01, an annual surtax is levied, and shall be paid to and collected by the department at the same time as the tax under chapter 10 of this title, on individuals having Arizona gross income, as defined by section 43-1001, during the taxable year.
B. The amount of the surtax is one per cent of the taxpayer's federal adjusted gross income for the taxable year, computed pursuant to the internal revenue code.
C. The department shall separately account for revenues collected pursuant to this section, and shall not commingle the revenues with revenues from the tax collected pursuant to chapter 10 of this title. The revenues collected pursuant to this section are not considered to be proceeds of state income taxes for the purposes of section 43-206.
D. Without reduction for credits or refunds under chapter 10 of this title, The revenues collected pursuant to this section shall be credited to, and are continuously appropriated for the purposes of, the classroom site fund established by section 15-977. School districts and charter schools shall use the revenues distributed pursuant to this subsection solely for the purpose of reducing the number of pupils in each classroom. The revenues distributed pursuant to this subsection shall supplement, and not supplant, other monies appropriated to school districts and charter schools. The revenues prescribed in this subsection shall not be collected after any fiscal year in which there is a statewide average of at least one classroom teacher for every twenty‑four pupils enrolled in school districts and charter schools, as determined by the department of education.
43-1195.01. Pass-through business surtax
A. In addition to the tax prescribed by section 43-1011 and the surtax prescribed by section 43-1195, an annual surtax is levied, and shall be paid to and collected by the department at the same time as the tax under chapter 10 of this title, on individuals having an ownership interest in any business entity organized as follows:
1. A sole proprietorship.
2. A partnership that is required to file a return under chapter 14 of this title.
3. A limited liability partnership that has filed a statement of qualification under section 29-1101 or a foreign limited liability partnership as defined in section 29-1001.
4. A limited liability company formed under title 29, chapter 4.
5. An S corporation, as defined in section 1361 of the internal revenue code.
6. Any other form of business where a distributive share of income of the business is subject to tax under this chapter only in the individual capacity of its owners.
B. The amount of the surtax is one thousand dollars, allocated among and paid by the individual owners in proportion to their ownership interest in the business, but the total amount paid by all such individuals shall not exceed one thousand dollars with respect to each business.
C. The surtax applies regardless of whether the business is organized for profit.
D. The department shall separately account for revenues collected pursuant to this section, and shall not commingle the revenues with revenues from the tax collected pursuant to chapter 10 of this title. The revenues collected pursuant to this section are not considered to be proceeds of state income taxes for the purposes of section 43-206.
E. Without reduction for credits or refunds under chapter 10 of this title, the revenues collected pursuant to this section shall be credited to, and are continuously appropriated for the purposes of, the Arizona board of regents and the community college districts in this state. The Arizona board of regents shall use the revenues distributed pursuant to this subsection solely for the purpose of reducing tuition charged to students who are classified as in‑state students pursuant to section 15‑1802. Each community college district in this state shall use the revenues distributed pursuant to this subsection solely for the purpose of reducing tuition charged to students who are classified as county residents pursuant to section 15‑1802.01. The revenue distributed pursuant to this subsection shall supplement, and not supplant, other monies appropriated to universities and community colleges.
43-1195.02. Corporate income surtax
A. In addition to the tax prescribed by section 43-1111, an annual surtax is levied, and shall be paid to and collected by the department at the same time as the tax under chapter 11 of this title on corporations, unless exempt under section 43‑1126 or 43-1201 or as otherwise provided in this title or by law.
B. The amount of the surtax is one thousand dollars.
C. The department shall separately account for revenues collected pursuant to this section, and shall not commingle the revenues with revenues from the tax collected pursuant to chapter 11 of this title. The revenues collected pursuant to this section are not considered to be proceeds of state income taxes for the purposes of section 43-206.
D. Without reduction for credits or refunds under chapter 11 of this title, the revenues collected pursuant to this section shall be credited to, and are continuously appropriated for the purposes of, the Arizona board of regents and the community college districts in this state. The Arizona board of regents shall use the revenues distributed pursuant to this subsection solely for the purpose of reducing tuition charged to students who are classified as in‑state students pursuant to section 15‑1802. Each community college district in this state shall use the revenues distributed pursuant to this subsection solely for the purpose of reducing tuition charged to students who are classified as county residents pursuant to section 15‑1802.01. The revenue distributed pursuant to this subsection shall supplement, and not supplant, other monies appropriated to universities and community colleges.
Sec. 2. Intent; goals
It is the intent of the people that in addition to the surtaxes imposed by this act, all corporate and individual income tax exemptions, subtractions, deductions and credits allowed by title 43, chapters 10 and 11, Arizona Revised Statutes, be reduced by five per cent and all corporate and individual income tax rates prescribed by sections 43‑1011 and 43‑1111, Arizona Revised Statutes, be increased by five per cent until the first fiscal year in which all of the following goals have been achieved, as reported by the joint legislative budget committee:
1. Reduce full‑time community college tuition at all state community colleges to not more than five hundred dollars per semester.
2. Reduce full‑time university tuition at all universities under the jurisdiction of the Arizona board of regents to not more than one thousand five hundred dollars per semester.
3. Reduce the statewide average of the number of pupils in public school classrooms to not more than twenty‑five.
2. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article IV, part 1, section 1, Constitution of Arizona.
