tax corrections act of 2002
SB 1139 makes technical, conforming and clarifying changes to the Arizona tax statutes.
SB 1139 was amended in the Ways and Means Committee to make technical corrections including conforming and internal reference correction changes.
The state tax statutes are reviewed annually by the Department of Revenue (DOR) and Legislative Council for 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.
SB 1139 makes these technical, conforming and clarifying changes to Arizona tax statutes. According to DOR, there is no fiscal impact associated with this bill.
· Establishes a retention period for tax returns and accompanying documents.
· Clarifies that electronic return preparers retain records of transaction privilege tax and use tax returns for six years and other tax return records for four years.
· Provides electronic return preparers who fail to retain tax return records for the specified time periods, have the same penalties as other return preparers.
· Allows DOR to require, by administrative rule, electronic return preparers to retain tax return documents for six years and other tax return records for four years.
· Clarifies that electronic return preparers must abide by the regulations set forth in Department rules, manuals, rulings or procedures.
· Moves the definitions of electronic return preparer, return preparer and return to another statutory section.
Definitions
· Deletes the definition of claimant and statutory references to claimant.
· Removes, from the definition of report, a holder’s report of abandoned property.
· Defines Arizona tax liability due on the taxpayer’s estimated tax return as the amount of tax due on the return minus the amount of Arizona income tax withheld and tax credits claimed by the taxpayer.
· Removes requirement that BOTA retain specific records for the property tax assessment and appeals.
· Streamlines reporting of transient personal property (livestock).
· Removes the overlap between confidentiality provisions in current statute (Title 42 and Title 44).
· Clarifies the exchange of information regarding severance tax, jet fuel excise tax or use tax to any county, city or town tax official.
· Clarifies that DOR collects and administers, in addition to transaction privilege tax, any affiliated excise taxes including:
· Use tax.
· Severance tax.
· Jet fuel excise and use tax.
· Rental occupancy tax.
· Authorizes DOR to prescribe, by administrative rule, alternative methods for signing, subscribing or verifying any report or statement required to be filed by the Department in relation to property tax and unclaimed property.
· Allows the DOR Director to waive the signature requirement provided that an equivalent method of verification is employed.
· Stipulates that DOR will no longer prescribe short form returns for individual taxpayers whose dividend and interest income is less than $400.
· Corrects internal references regarding personal property.
· Deletes duplicative statutory language.
· Blends multiple enactments regarding constitutional taxation.
· Makes technical and conforming changes.
Amendments
· Corrects internal references regarding the increased TPT from the passage of Proposition 301.
· Provides a conforming change to the utilities classification from the deregulation bill from 1998.
· Removes exemption for semi-trailers manufactured in Arizona.
· Clarifies the exchange of confidential information regarding hearings involving tax preparers.
· Changes the date the assessors calculate voluntary contributions from the third Monday in August to the third Friday in September.
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45th Legislature
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Second Regular Session 3 April
10, 2002
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