ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
tax corrections act of 2001
Makes technical, conforming
and clarifying changes to the Arizona tax statutes.
The state tax statutes are
reviewed annually by the Department of Revenue (DOR) and Legislative Council
for erroneous errors and obsolete language.
DOR and the Legislative Council recommend nonsubstantive technical corrections
to clean up the language in the tax statutes.
These suggestions are compiled each year in the tax corrections
act.
According to the Department
of Revenue, there is no anticipated fiscal impact to the state general fund.
1. Provides that the tax levy for county equalization assistance for education shall be determined pursuant to ARS 41-1276, which sets the truth in taxation levy for equalization assistance to school districts.
2. Makes changes in order to blend statutes due to the passage of the Tourism and Sports Authority proposition.
3. Deletes the reference to the family income tax credit in the debt setoff statute because the credit is not refundable.
4. Provides a reasonable cause exception to the late payment penalty for taxpayers participating in a payment agreement.
5. Makes a correction for an improper reference to the Internal Revenue Code section 7213A.
6. Clarifies and makes consistent throughout the statute that taxpayers who pay the transaction privilege tax (TPT) during the “grace period” will not have penalties applied.
7. Clarifies the TPT and use tax in regards to “producing livestock” is retroactive to the beginning of the current fiscal year (2000-2001).
8. Makes blending changes to ARS 42-5070, relating to the transient lodging classification.
9. Requires the Department to separately account for funds collected under the class for purposes of remission and distribution to the tourism fund.
10. Makes blending changes to statutes regarding prime contracting classification combining them into one statute and correctly states a deduction from the tax base of the class. The gross proceeds of sales or gross income derived from the post-construction treatment of a real property for termite and general pest control is placed within this statute. This exclusion was previously added during the 2000 session.
11. Clarifies that the language regarding the use tax exemptions does not apply where courts have ruled such an imposition is unconstitutional.
12. Removes an unnecessary reference to ARS 43-1201 regarding organizations exempt form tax.
13. Removes duplications and corrects the effective date of statutes regarding subtractions from Arizona gross income.
14. Corrects an improper reference to credits with respect to the subtraction for emergency efficient residences.
15. Provides for an extension of the carryover period for defense contractor credits for employment that was provided to corporations in S.B. 1424 from the 2000 regular session.
16. Conforms language to provide the extension of the carryover period for defense contractor property tax credits to individuals that was provided to corporations in S.B. 1424 from the 2000 regular session.
17. Clarifies the reference to the proper refund section and corrects the credit limitation provision.
18. Changes taxable years to calendar years for individual and corporate technology training credits to coordinate with the Department of Commerce program that uses a calendar year.
19. Clarifies that corporate taxpayers should substitute the corporate term “federal taxable income” for the individual term “federal adjusted gross income.”
20. Eliminates ambiguous and obsolete language from the corporate net operating loss section.
21. Clarifies the extension of the carry forward period for the credit for employment by a qualified defense contractor by referencing taxable years.
22. Clarifies the extension of the carry forward period for the credit, for property tax that is paid by a qualified defense contractor by referencing taxable years.
23. Clarifies the reference to the proper refund section and to correct the credit limitation provision relating to an agricultural preservation district.
24. Clarifies terms used in reporting unrelated business income.
25. Clarifies the definition of property so that “property of a person who is maintaining a current business relationship with the holder of property” is not included.
26. Clarifies that government utilities are treated similar to private utilities regarding unclaimed property.
27. Allows an organization licensed to conduct bingo games to incur expenses for mortgage payments when a nonprofit charitable organization licensee is using the building or premises for both bingo and for the licensee’s charity.
28. Requires DOR to release confidential luxury and excise tax information as requested by the Attorney General for purposes of determining compliance with requirements for any tobacco product manufacturer, distributor, wholesaler and retailer selling cigarettes to consumers within Arizona.
29. Allows the Arizona tax form 140A to be filed by persons not 65 years of age or older or blind regardless of date of onset.
30. Clarifies that a tax credit for increased research activities is available to two or more taxpayers including corporate partners in a partnership.
31. Allows confidential information to be disclosed to a vender for the purpose of destruction of documents.
32. Makes technical changes regarding the tax credit for increased research activity.
33. Provides retroactive effective dates of July 18, 2000 for section 1 and taxable periods beginning from and after June 30, 2000 and December 31, 1999 for section 15.
34. Provides for a retroactive effective date of August 6, 1999 for section 2.
35. Provides for a retroactive effective date of January 1, 2001 for sections 19 and 28.
36. Provides for a retroactive effective date of January 1, 2001 for section 30.
37. Makes technical and conforming changes.
1.
Conforms
DOR confidentiality policy to mirror IRS policy on the use of outside vendors
for shredding procedures.
2.
Makes
a technical correction to include language that should have been in the tobacco
master settlement agreement and allows DOR and the Attorney General to properly
enforce the settlement agreement.
3.
Makes
technical changes to the statute regulating the Arizona tax form 140A to
conform with current practice.
4.
Makes
technical changes to the corporate and individual research and development tax
credits.
5.
Makes
a technical change to the agriculture preservation district income tax credit.
6.
Corrects
several incorrect internal statutory references.
7.
Provides
for various retroactive effective dates.
Prepared by Senate Staff
March 13, 2001