department of revenue:
technical correction
As introduced,
eliminates an obsolete reference to the Governor’s gender. The
proposed strike-everything amendment eliminates the corporate income tax rate
over ten years.
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 proposed strike-everything amendment will eliminate the corporate income tax rate over a ten-year period. According to DOR, the impact in the first two years is approximately $100 million.