Reference Title: taxation; internal revenue code conformity

AN ACT
AMENDING SECTIONS 42-1001 AND 43-105, ARIZONA REVISED STATUTES; RELATING TO TAXATION.

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

Section 1. Section 42-1001, Arizona Revised Statutes, is amended to read:

42-1001 . Definitions

In this title, unless the context otherwise requires:

1. "Board" or "state board" means either the state board of tax appeals or the state board of equalization, as applicable.

2. "Court" means the tax court or superior court, whichever is applicable.

3. "Department" means the department of revenue.

4. "Director" means the director of the department.

5. "Internal revenue code" means the United States internal revenue code of 1986, as amended and in effect as of January 1, 1998 1999 , including those provisions that became effective during 1997 1998 with the specific adoption of their retroactive effective dates but excluding all changes to the code enacted after January 1, 1998 1999 .

Sec. 2. Section 43-105, Arizona Revised Statutes, is amended to read:

43-105 . Internal revenue code; definition; application

A. FOR PURPOSES OF COMPUTING INCOME TAX PURSUANT TO THIS TITLE, FOR TAXABLE YEARS BEGINNING FROM AND AFTER DECEMBER 31, 1998 THROUGH DECEMBER 31, 1999, "INTERNAL REVENUE CODE" MEANS THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED, IN EFFECT ON JANUARY 1, 1999, INCLUDING THOSE PROVISIONS THAT BECAME EFFECTIVE DURING 1998 WITH THE SPECIFIC ADOPTION OF ALL FEDERAL RETROACTIVE EFFECTIVE DATES, BUT EXCLUDING ANY CHANGE TO THE CODE ENACTED AFTER JANUARY 1, 1999.

A. B. For purposes of computing income tax pursuant to this title, for taxable years beginning from and after December 31, 1997 through December 31, 1998, "internal revenue code" means the United States internal revenue code of 1986, as amended, in effect on January 1, 1998, including those provisions that became effective during 1997 with the specific adoption of all federal retroactive effective dates , but excluding any change to the code enacted after January 1, 1998 AND INCLUDING THOSE PROVISIONS OF THE IRS RESTRUCTURING AND REFORM ACT OF 1998 (P.L. 105-206), THE TAX AND TRADE RELIEF EXTENSION ACT OF 1998 (P.L. 105-277) AND THE SURFACE TRANSPORTATION REVENUE ACT OF 1998 (P.L. 105-178) THAT ARE RETROACTIVELY EFFECTIVE DURING THE TAXABLE YEARS BEGINNING FROM AND AFTER DECEMBER 31, 1997 THROUGH DECEMBER 31, 1998 .

B. C. For purposes of computing income tax pursuant to this title, for taxable years beginning from and after December 31, 1996 through December 31, 1997, "internal revenue code" means the United States internal revenue code of 1986, as amended, in effect on January 1, 1997, including those provisions that became effective during 1996 with the specific adoption of all federal retroactive effective dates and including the provisions of the taxpayer relief act of 1997 (P.L. 105-34) , THE IRS RESTRUCTURING AND REFORM ACT OF 1998 (P.L. 105-206) AND THE TAX AND TRADE RELIEF EXTENSION ACT OF 1998 (P.L. 105-277) that are retroactively effective during taxable years beginning from and after December 31, 1996 through December 31, 1997.

C. D. For purposes of computing income tax pursuant to this title, for taxable years beginning from and after December 31, 1995 through December 31, 1996, "internal revenue code" means the United States internal revenue code of 1986, as amended, in effect on January 1, 1996, including those provisions that became effective during 1995 with the specific adoption of their retroactive effective date and including those provisions of the small business job protection act of 1996 (P.L. 104-188 , ; 110 Stat. 1755), the health insurance portability and accountability act of 1996 (P.L. 104-191 , ; 110 Stat. 1936), the personal responsibility and work opportunity reconciliation act of 1996 (P.L. 104-193 , ; 110 Stat. 2105) , and the taxpayer relief act of 1997 (P.L. 105-34) , THE IRS RESTRUCTURING AND REFORM ACT OF 1998 (P.L. 105-206) AND THE TAX AND TRADE RELIEF EXTENSION ACT OF 1998 (P.L. 105-277) that are retroactively effective during taxable years beginning from and after December 31, 1995 through December 31, 1996.

D. E. For purposes of computing income tax pursuant to this title, for taxable years beginning from and after December 31, 1994 through December 31, 1995, "internal revenue code" means the United States internal revenue code of 1986, as amended, in effect on January 1, 1995, including those provisions that became effective during 1994 with the specific adoption of their retroactive effective date and including those provisions of the small business job protection act of 1996 (P.L. 104-188 , ; 110 Stat. 1755), the health insurance portability and accountability act of 1996 (P.L. 104-191 , ; 110 Stat. 1936), the personal responsibility and work opportunity reconciliation act of 1996 (P.L. 104-193 , ; 110 Stat. 2105) , and the taxpayer relief act of 1997 (P.L. 105-34) , THE IRS RESTRUCTURING AND REFORM ACT OF 1998 (P.L. 105-206) AND THE TAX AND TRADE RELIEF EXTENSION ACT OF 1998 (P.L. 105-277) that are retroactively effective during taxable years beginning from and after December 31, 1994 through December 31, 1995.

E. F. For purposes of computing income tax pursuant to this title, for taxable years beginning from and after December 31, 1993 through December 31, 1994, "internal revenue code" means the United States internal revenue code of 1986, as amended, in effect on January 1, 1994, including those provisions that became effective during 1993 with the specific adoption of their retroactive effective date and including those provisions of the small business job protection act of 1996 (P.L. 104-188 , ; 110 Stat. 1755), the health insurance portability and accountability act of 1996 (P.L. 104-191 , ; 110 Stat. 1936), the personal responsibility and work opportunity reconciliation act of 1996 (P.L. 104-193 , ; 110 Stat. 2105) , and the taxpayer relief act of 1997 (P.L. 105-34) , THE IRS RESTRUCTURING AND REFORM ACT OF 1998 (P.L. 105-206) AND THE TAX AND TRADE RELIEF EXTENSION ACT OF 1998 (P.L. 105-277) that are retroactively effective during taxable years beginning from and after December 31, 1993 through December 31, 1994.

F. G. Except as provided in section 43-106, for purposes of computing income tax pursuant to this title for taxable years beginning from and after December 31, 1992 through December 31, 1993, "internal revenue code" means the United States internal revenue code of 1986, as amended, in effect on January 1, 1993, including those provisions that became effective during 1992 with the specific adoption of their retroactive effective date and including those provisions of the small business job protection act of 1996 (P.L. 104-188 , ; 110 Stat. 1755), the health insurance portability and accountability act of 1996 (P.L. 104-191 , ; 110 Stat. 1936), the personal responsibility and work opportunity reconciliation act of 1996 (P.L. 104-193 , ; 110 Stat. 2105) , and the taxpayer relief act of 1997 (P.L. 105-34) , THE IRS RESTRUCTURING AND REFORM ACT OF 1998 (P.L. 105-206) AND THE TAX AND TRADE RELIEF EXTENSION ACT OF 1998 (P.L. 105-277) that are retroactively effective during taxable years beginning from and after December 31, 1992 through December 31, 1993.

G. H. For purposes of computing income tax pursuant to this title, for taxable years beginning from and after December 31, 1991 through December 31, 1992, "internal revenue code" means the United States internal revenue code of 1986, as amended, in effect on January 1, 1992, including those provisions that became effective during 1991 with the specific adoption of their retroactive effective date and including those provisions of the small business job protection act of 1996 (P.L. 104-188 , ; 110 Stat. 1755), the health insurance portability and accountability act of 1996 (P.L. 104-191 , ; 110 Stat. 1936) , and the personal responsibility and work opportunity reconciliation act of 1996 (P.L. 104-193 , ; 110 Stat. 2105) AND THE TAX AND TRADE RELIEF EXTENSION ACT OF 1998 (P.L. 105-277) that are retroactively effective during taxable years beginning from and after December 31, 1991 through December 31, 1992.

H. I. For purposes of computing income tax pursuant to this title, for taxable years beginning from and after December 31, 1990 through December 31, 1991, "internal revenue code" means the United States internal revenue code of 1986, as amended, in effect on January 1, 1991, including those provisions that became effective during 1990 with the specific adoption of their retroactive effective date and including those provisions of the small business job protection act of 1996 (P.L. 104-188 , ; 110 Stat. 1755), the health insurance portability and accountability act of 1996 (P.L. 104-191 , ; 110 Stat. 1936) , and the personal responsibility and work opportunity reconciliation act of 1996 (P.L. 104-193 , ; 110 Stat. 2105) AND THE TAX AND TRADE RELIEF EXTENSION ACT OF 1998 (P.L. 105-277) that are retroactively effective during taxable years beginning from and after December 31, 1990 through December 31, 1991.

APPROVED BY THE GOVERNOR MAY 19, 1999.

FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 19, 1999.