Bill > SB1331

This bill amends Arizona's income tax law to modify the provisions for capital gains tax subtraction. Specifically, the bill changes the percentage of net long-term capital gains that can be subtracted from Arizona gross income for taxable years beginning after December 31, 2025. Previously, the law had a graduated reduction in capital gains tax subtraction from 10% to 25% over several years, but this bill sets the subtraction at a flat 25% of net long-term capital gains for taxable years starting after December 31, 2025. The bill also clarifies that if an asset is received through a gift or inheritance, the acquisition date is considered to be when the original transferor acquired the asset. If the acquisition date cannot be verified, no subtraction will be allowed. This change is part of Arizona's ongoing efforts to provide tax relief for capital gains, potentially making the state more attractive for investors and businesses by offering a partial tax exemption on long-term capital gains.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/82720