House of Representatives

HB 2391

board of chiropractic examiners

Sponsors: Representative Leff

 

W/D

Committee on Health

DPA

S/E

Committee on Commerce and Economic Development

 

  X

Committee on Appropriations

 

Caucus and COW

This bill as introduced contains an Emergency clause.

 

As Passed the House

 

The strike – everything amendment for HB 2193 reduces the corporate income tax rate to 5.04% over four years.

 

History for proposed strike-everything amendment:

 

Every corporation doing business in Arizona is required to file a corporate income tax return.  According to the Department of Revenue 2000 Annual Report, approximately 52,000 corporations filed returns during Fiscal Year 1999-2000 with payments of $637.7 million.  The corporate tax rate for that period was a flat rate of 8% on taxable income.  The current rate for tax year 2001 is a flat rate of 6.968%.  There is a $50 minimum tax liability imposed on all corporate returns.

 

While states vary on how they arrive at corporate taxable liability, listed below is a comparison of the corporate tax rate to other western states:

 

California                      flat rate of 10.84% (minimum $800)

Colorado                      flat rate of 4.63%

Idaho                           flat rate of 8.0% (minimum $20)

New Mexico                4.8% - 7.6%

Oregon                         flat rate of 6.6% ($10 minimum)

Utah                             flat rate of 5.0% ($100 minimum)

 

The strike-everything amendment will reduce the corporate rate from the current 6.98% to 5.04% over four years.  The 5.04% rate will match the highest rate imposed on individual filers in Arizona.

 

Based on information provided by DOR, the fiscal impact is approximately $33 million for each of the following fiscal years for FY 2001-2002, FY 2002-2003 and FY 2003-2004.

 

Provisions for proposed strike-everything amendment:

·        Decreases the corporate income tax rate over a four-year period.

·        The corporate income tax rate is reduced from 6.968 per cent (current rate for Tax Year 2001) as follows: Tax Year 2002 – 6.5 per cent, Tax Year 2003  - 6 per cent, Tax Year 2004 – 5.5 per cent and Tax Year 2005 and thereafter – 5.0 per cent.

 

The proposed strike-everything amendment was adopted in the Commerce and Economic Development Commttee as listed in the provisions.

 

 

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44th Legislature                                                                                                                                

Second Regular Session                               2                                                           March 1, 2001

 

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