Bill > SB1464

This bill amends Arizona tax law to provide additional taxpayer protections regarding new interpretations or applications of tax regulations. It requires the Arizona Department of Revenue to provide notice and potentially testify before legislative committees if a proposed new tax interpretation could adversely affect taxpayers prospectively. The bill mandates that new tax interpretations generally apply only to future tax periods, not retroactively, unless the new interpretation is more favorable to taxpayers. If the department adopts a new interpretation that is not due to a change in law, it cannot retroactively assess taxes, penalties, or interest, and the new interpretation serves as an affirmative defense in administrative or judicial actions. The bill defines "new interpretation or application" broadly to include administrative rules, tax rulings, tax procedures, and instructions to tax returns. These provisions aim to protect taxpayers from unexpected tax assessments based on novel interpretations of existing tax laws and ensure transparency in how tax regulations are applied.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/82888