Reference Title: income tax; technical corrections

AN ACT
AMENDING SECTION 43-1073, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 1998, FOURTH SPECIAL SESSION, CHAPTER 3, SECTION 9; AMENDING LAWS 1998, FOURTH SPECIAL SESSION, CHAPTER 3, SECTION 19; RELATING TO INCOME TAX.

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 43-1073, Arizona Revised Statutes, as amended by Laws 1998, fourth special session, chapter 3, section 9, is amended to read:

43-1073 . Family income tax credit

A. Subject to the conditions prescribed by this section, a credit is allowed against the taxes imposed by this chapter for a taxable year for taxpayers whose Arizona adjusted gross income, plus the amount subtracted for exemptions under section 43-1023, is:

1. Twenty thousand dollars or less in the case of a married couple filing a joint return with no more than one dependent or a single person who is a head of a household with no more than one dependent.

2. Twenty-three thousand six hundred dollars or less in the case of a married couple filing a joint return with two dependents.

3. Twenty-seven thousand three hundred dollars or less in the case of a married couple filing a joint return with three dependents.

4. Thirty-one thousand dollars or less in the case of a married couple filing a joint return with four or more dependents.

5. Twenty thousand one hundred thirty-five dollars or less in the case of a single person who is a head of a household with two dependents.

6. Twenty-three thousand eight hundred dollars or less in the case of a single person who is a head of a household with three dependents.

7. Twenty-five thousand two hundred dollars or less in the case of a single person who is a head of a household with four dependents.

8. Twenty-six thousand five hundred seventy-five dollars or less in the case of a single person who is a head of a household with five or more dependents.

9. Ten thousand dollars or less in the case of a single person or a married person filing separately with no dependents .

B. The amount of the credit is equal to forty dollars for each person who is a resident of this state and for whom a personal or dependent exemption is allowed with respect to the taxpayer pursuant to section 43-1043 and 43-1023, subsection B, paragraph 1, but not to exceed:

1. Two hundred forty dollars in the case of a married couple filing a joint return or a single person who is a head of a household.

2. One hundred twenty dollars in the case of a single person or a married couple filing separately.

3. For any taxpayer, the amount of taxes due under this chapter for the taxable year.

Sec. 2. Laws 1998, fourth special session, chapter 3, section 19 is amended to read:

Sec. 19. Retroactivity

A. Sections 43-1011, 43-1073, 43-1111, 43-1121 , 43-1122 and 43-1146, Arizona Revised Statutes, as amended by this act LAWS 1998, FOURTH SPECIAL SESSION, CHAPTER 3 , apply retroactively to taxable years beginning from and after December 31, 1997.

B. Section 28-5801, Arizona Revised Statutes, as amended by this act LAWS 1998, FOURTH SPECIAL SESSION, CHAPTER 3 , applies retroactively to from and after July 31, 1998.

Sec. 3. Retroactivity

Section 43-1073, Arizona Revised Statutes, as amended by this act, applies retroactively to taxable years beginning from and after December 31, 1997.

APPROVED BY THE GOVERNOR JULY 9, 1998.

FILED IN THE OFFICE OF THE SECRETARY OF STATE JULY 9, 1998.