Assigned to FIN                                                                                                                 AS PASSED BY THE SENATE

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FINAL REVISED

FACT SHEET FOR H.B. 2459

 

sales tax; charitable organizations

(NOW: income tax subtraction; holocaust victims)

 

Purpose

 

            Allows a taxpayer or their descendants or heirs who receive reparation payments made to victims of the Nazi Holocaust to subtract those payments from their individual income tax.

 

Background

 

            Under Federal law reparations payments from the German government do not constitute income because they are in the nature of reimbursement for the deprivation of civil or personal rights.  Additionally, Federal law exempts reparations directly from the German government from means tested programs.  However, Federal law makes no reference to reparations coming from pools of funds created to address claims against banks, insurance companies, or corporations that used slave labor. 

 

            The amendment to H.B. 2459 provides an income tax subtraction to a taxpayer (or the taxpayer’s decedents or heirs) who receive reparations payments from any source made to victims of the Nazi Holocaust.  Additionally, it excludes any income received as a holocaust reparation payment from consideration when determining income eligibility for a state program. 

 

            The Department of Revenue anticipates very little, if any, fiscal impact from the provisions of this measure.

 

Provisions

 

1.      Allows a taxpayer (or the taxpayer’s descendants or heirs) who receive reparation payments made to victims of the Nazi Holocaust to subtract those payments from their individual income tax.

 

2.      Excludes any income received as a Holocaust reparation payment from consideration when determining income eligibility for a state program.

 

3.      Provides a retroactive effective date beginning from and after December 31, 1999.

 

Amendments Adopted by Committee

 

1.  Adopted the strike everything amendment.

 

Amendments Adopted by Conference Committee

 

1.      Provides a retroactive effective date beginning from and after December 31, 1999.

 

Senate Action                                                               House Action

 

FIN                  3/9/00              DPA    7-0-0               W&M              1/18/00            DPA    6-3-2-1

3rd Read           3/29/00                        29-0-1             3rd Read           2/16/00                        39-19-2

Final Read        4/14/00                        27-0-3             Final Read        4/13/00                        53-0-7

 

Signed by the Governor 4/18/00

Chapter 286

 

 

 

Prepared by Senate Staff

April 24, 2000