House of Representatives

2016

income tax forms; flexibility

Sponsors: Rep. May

X	Committee on Ways & Means
	Caucus and COW	This bill as introduced contains a PROP 105 clause.
	As Passed the House

HB 2016 will allow DOR more flexibility in the design of income tax forms.

History

Arizona has several tax check-offs for individuals filing income tax in Arizona. A check-off allows a person to voluntarily contribute a monetary gift to a certain fund that is designated on the individual income tax form. Typically, those who utilize the check-off reduce their refund amount by a given amount or they add it to their total tax obligation that is due. All of the check-offs are required by statute to be on the front of the individual income tax form. As more check-off funds have been passed the legislature, the front of the form has become crowded.

In an effort to create more space on the tax return forms, DOR has suggested the elimination of the check-off mandate so that they may have increased flexibility on the design of the forms. Additionally, DOR has asked the removal of a few other mandates to allow more persons to utilize the short form or the EZ form.

Provisions

· Allows DOR the flexibility to remove the voluntary donation check-off boxes from the front of the individual income tax return form. The current check-off boxes are for the following funds: clean elections fund, political parties trust fund, child abuse prevention fund, Arizona Special Olympics, wildlife fund, neighbors helping neighbors fund and the domestic violence shelter fund.

· Removes the requirement for a clean elections fund check-off on the 140EZ form.

· Clarifies that the 140EZ form is not used for those claiming the exemptions for over sixty-five years of age or blind.

· Eliminates the $400 dividend interest income limitation from the 140A (short form). The bill also clarifies that this form is for persons who opt to use the standard deduction instead of itemized deductions.

· Removes the requirement of designating a set contribution of $10, $5 or $2 on the political parties’ trust fund. This requirement is unique to check-off funds; all other check-offs allow a person to designate any amount they choose.

· Contains a Proposition 105 clause, which requires a three-fourths vote of both chambers to enact. This requirement is needed due to the changes to the clean elections fund proposition.

---------- DOCUMENT FOOTER ---------

44th Legislature

Second Regular Session 2 January 8, 2001

---------- DOCUMENT FOOTER ---------