Bill Text: AZ SB1169 | 2014 | Fifty-first Legislature 2nd Regular | Introduced
Bill Title: Tax credits; rate reductions; suspension
Spectrum: Moderate Partisan Bill (Democrat 7-1)
Status: (Introduced - Dead) 2014-01-27 - Referred to Senate FIN Committee [SB1169 Detail]
Download: Arizona-2014-SB1169-Introduced.html
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REFERENCE TITLE: tax credits; rate reductions; suspension |
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State of Arizona Senate Fifty-first Legislature Second Regular Session 2014
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SB 1169 |
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Introduced by Senators Farley, Ableser, Dalessandro, Gallardo, Hobbs: Pancrazi, Tovar; Representative Orr
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AN ACT
amending title 42, chapter 1, Arizona Revised Statutes, by adding article 7; relating to taxation.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 42, chapter 1, Arizona Revised Statutes, is amended by adding article 7, to read:
ARTICLE 7. SUSPENSION OF CREDITS AND REDUCTIONS
42-1301. Definition
In this article, unless the context otherwise requires:
1. "K-12" means kindergarten programs and grades one through twelve.
2. "Trigger event" means a fiscal year in which at least one of the following occurs:
(a) The per student state general fund expenditures for K-12 education are at least equal to the median per student general fund expenditures for K‑12 education among the fifty states, as determined by the joint legislative budget committee.
(b) At least ninety-four per cent of the third grade students in this state are reading at or higher than the third grade reading level as measured on the test prescribed by section 15-741.
(c) The high school graduation rate in this state is at least ninety‑three per cent.
42-1302. Suspension of credits and reductions
A. Following every fiscal year, the superintendent of public instruction shall determine whether a trigger event has occurred and report the findings of this determination to the governor, the director of the department of revenue, the president of the senate and the speaker of the house of representatives on or before December 1.
B. Notwithstanding sections 42-15001 and 43-1111, until a trigger event occurs, both of the following apply:
1. The assessed valuation of class one property described in section 42‑12001 is eighteen and one-half per cent of its full cash value or limited valuation, as applicable.
2. There shall be levied, collected and paid for the taxable year on the entire Arizona taxable income of every corporation, unless exempt under section 43-1126 or 43-1201 or as otherwise provided in title 43 or by law, taxes in an amount of six per cent of net income or fifty dollars, whichever is greater.
C. The disallowance of a tax credit pursuant to this section does not affect the application of any carryover of a tax credit from a prior year.
