Bill > SB1213

This bill amends Arizona's income tax laws to provide a tax credit for businesses that pay employees a local minimum wage that is higher than the state minimum wage. The credit is equal to 5% of the difference between the employer's actual hourly labor costs and the amount that would have been paid at the state minimum wage. The total amount of credits that can be claimed per city or town is capped at $5 million per calendar year on a first-come, first-served basis. The state treasurer is required to withhold funds from the city or town's urban revenue sharing distribution to reimburse the state for the credits claimed. The purpose of the bill is to provide relief for businesses affected by local minimum wage increases that exceed the state's minimum wage.