ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
joint legislative tax
committee
Purpose
Re-establishes the Joint
Legislative Tax Committee (JLTC) and mandates JLTC to review all tax expenditures
(§ 42-1005, subsection A, paragraph 4).
Background
Created in 1974, JLTC was a
statutorily established committee whose duties and powers were to recommend
rate settings for the telecommunication service excise tax, and analyze the
state tax structure, burdens on taxpayers and tax incentives for existing and
prospective businesses. In 1999, the
National Conference of State Legislatures conducted a sunset review of JLTC in
conjunction with a sunset review of the Joint Legislative Budget Committee. Additionally, the Joint Legislative Audit
Committee assigned a sunset review of JLTC in 1999. The Senate Finance (Finance) and House Ways & Means (W&M)
Committees made no formal recommendation; however, the consensus opinion was to
allow JLTC to sunset. In 2000, JLTC was
repealed (Laws 2000, Chapter 187, §12) and its responsibilities transferred to
the Department of Revenue (DOR) Director, the Legislature and the Joint
Legislative Budget Committee (JLBC).
S.B. 1228 re-establishes this committee and mandates JLTC to review all
tax expenditures (§ 42-1005, subsection A, paragraph 4).
S.B.
1228, as amended, should not impact the state general fund.
Provisions
1. Establishes JLTC with the following membership: Senate President, Speaker of the House of Representatives (House), Finance Committee chairman, W&M Committee chairman, Senate and House Appropriations Committees chairmen and three appointed members each from the Finance and W&M Committees.
2. Charges JLTC with the following duties:
(a)
Analyze
the state’s tax structure, individual and business tax burdens and tax
incentives for both existing and future businesses.
(b)
Determine
the original purpose of all tax expenditures (§ 42-1005, subsection A,
paragraph 4) and establish evaluation standards for existing expenditures.
3. Requires JLTC to review all tax expenditures with the assistance of JLBC and DOR staff.
4. Requires JLTC to submit a report of its findings and recommendations on December 15 of each year to the Senate, House and Governor’s office.
5. Blends multiple enactments.
6. Makes technical and conforming changes.
7. Provides for a general effective date.
Amendments Adopted by Committee
1. Eliminates the staggered schedule of sunsetting certain tax exemptions for taxable period ending December 31, 2004 to December 31, 2008.
2. Changes the composition of JLTC and specifies that no more than three members from the same political party can be appointed to JLTC in either the Senate or House.
3. Relieves the Committee of the charge of examining why newspapers are classified in the transaction privilege tax (TPT) publications classification.
4. Broadens the scope of the Committee's examination of TPT and use tax exemptions to all tax expenditures.
Senate Action
FIN 2/11/02 DPA 5-1-2-0
Prepared by Senate Staff
February 12, 2002