Bill > HB2818

This bill amends Arizona's tax administration law by modifying the civil penalties section (42-1125) related to tax reporting and payment. Specifically, the bill adds a provision that prevents the department of revenue from imposing a late filing penalty on a taxpayer if the amount of tax due on the return is zero. This change applies to tax returns filed under chapters 5 and 6 of the Arizona Revised Statutes, which typically cover transaction privilege taxes (TPT) and use taxes. The bill maintains the existing penalty structure of 4.5% per month for late filing, with a maximum penalty of 25% of the tax due or $100, whichever is greater, but now explicitly states that no penalty will be assessed if the tax liability is zero. The modification aims to reduce administrative burden on taxpayers who file returns with no tax owed, providing a small but potentially helpful clarification to the state's tax reporting requirements.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/83289