Bill > HB2902

This bill modifies Arizona's corporate income tax regulations by making several key changes: it maintains the existing graduated corporate tax rate structure that has been reducing rates over time, with the current rate set at 4.9 percent for taxable years beginning after December 31, 2016, and introduces a new minimum tax provision specifically for corporations with 50 or more employees. Under this new provision, such corporations will be required to pay a minimum tax of $1,000, even if their calculated tax liability would otherwise be lower. The bill will apply to taxable years beginning after December 31, 2025, and requires a two-thirds vote in each legislative chamber for enactment, with a provision for a potential three-fourths override vote if the governor vetoes the legislation. The bill continues Arizona's trend of gradually reducing corporate tax rates while establishing a new baseline minimum tax for larger employers, potentially aimed at ensuring a consistent revenue stream from substantial corporate entities.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/83374