ARIZONA STATE SENATE
Phoenix, Arizona
tax corrections act of 2002
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 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.
S.B. 1139 makes technical,
conforming and clarifying changes to Arizona tax statutes. According to DOR,
there is no fiscal impact connected to this bill.
1. Establishes a retention period for tax returns and accompanying documents.
2. Requires electronic return preparers to retain, for six years, records of transaction privilege tax and use tax returns and other tax return records for four years.
3. Provides for a $50 to $25,000 penalty for electronic return preparers who fail to retain tax return records for the specified time periods.
4. 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.
5. Requires electronic return preparers to abide by the regulations set forth in Department rules, manuals, rulings or procedures.
Definitions
6. Moves the definitions of “electronic return preparer,” “return preparer” and “return” to another statutory section.
7. Deletes the definition of “claimant.”
8. Removes, from the definition of “report,” a holder’s report of abandoned property.
9. Defines “Arizona tax liability” due on the taxpayer’s 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.
10. Removes the overlap between confidentiality provisions in current statute (Title 42 and Title 44).
11. Allows information regarding severance tax, jet fuel excise tax or use tax to be disclosed to any county, city or town tax official.
12. Enables DOR to collect and administer, in addition to transaction privilege tax, any affiliated excise taxes including:
(a)
Use
tax.
(b)
Severance
tax.
(c)
Jet
fuel excise and use tax.
(d)
Rental
occupancy tax.
13. 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.
14. Allows the DOR Director to waive the signature requirement provided that an equivalent method of verification is employed.
15. Stipulates that DOR will no longer prescribe short form returns for individual taxpayers whose dividend and interest income is less than $400.
16. Deletes duplicative statutory language.
17. Blends multiple enactments regarding constitutional taxation.
18. Makes technical and conforming changes.
19. Provides for a general effective date.
Prepared by Senate Staff
January 31, 2002