We are 8 days into the 2019 legislative session and the first bills are coming forward for consideration. Here are a few you might be interested in watching:
Tax Conformity:
No bill yet, but Legislators and the Governor are discussing how to amend Arizona’s Income Tax to conform with the Federal Income Tax (new this year). Consult your CPA on when to submit your Arizona Income Tax Return.
Water:
The State Drought Contingency Plan is due by January 31, 2019. Representative Dunn spoke a bit about this issue and gave us background on our January 22nd Podcast.
HB 2013 – Az Water Protection Fund
Appropriates $1 million to the Arizona Water Protection Fund
HB 2095 – Agricultural Property Classification
Allows agricultural property that has become inactive due to reduction in water availability to maintain the agricultural designation for purposes of property tax.
HB 2394 – Water Efficiency Plumbing
Beginning Jan. 1, 2020, plumbing fixtures used in Arizona residential, commercial, industrial or public construction must meet specific water saving performance standards.
HB 2396 – Water; Well Metering; Nonexempt Wells
People withdrawing water from a nonexempt well is required to use a water measuring device approved by the Department of Water Resources.
Transportation:
HB 2047 – HURF Distribution; Cities, Towns, Counties
In the ADOT 2020-21 budget, ADOT is required to allocate $18 million to small counties and municipalities. Counties with populations less than 250,000 people and municipalities with populations less than 7,500 people.
HB 2109 – County Transportation Excise Tax
Requires counties to levy a county transportation excise tax for roads.
Economic Development:
HB 2037 – Technical Registration Board; Endorsement Registration
Provides for out of state license recognition by the State Technical Registration Board. Home Inspectors and Alarm companies would be affected as well as Landscape Architects, Geologists and some types of Engineers. Does provide for an Arizona Specific test.
Taxation:
HB 2027 – Online Lodging Marketplace; Local Taxation
Provides that municipalities may levy TPT on the gross receipts of an online lodging marketplace, whether acting as an owner or broker. The municipality may levy other fees or taxes as well.
HB 1078 – Facilities Income Tax Credits; Repeal
Repeals individual and corporate income tax credits for construction costs of qualified environmental technology facilities and for investing and employing in a qualified facility in Arizona.
HB 2296 – Corporate Income Tax; Rate Increase
The corporate income tax will increase from 4.9% to 5.5% beginning Jan. 1, 2020.
HB 2297 – Corporate Minimum Income Tax
The minimum income tax on every Arizona corporation will increase from $50.00 to $500.00.
SB 1085 – Association Health Plans
Provides a definition of a bona fide group or association for health insurance purposes. Includes self-employed persons.
SCR 1001 – Education; TPT; Use Tax
If passed will appear on the ballot for voter approval. Provides for a separate TPT tax increment to be used for education. The levy will be: 1% of tax base for each TPT classification and 1% for use tax.
SB 1033 – Property Tax Statements; Mortgage Property
Provides that the County Treasurer will mail property tax statements to both the mortgagor and the mortgagee. Currently, the County Treasurer mails a property tax statement to the mortgagor if the mortgagor pays the property tax. Mortgagees must request a statement.
Questions on AR’s (Arizona REALTORS®) position on these or other bills? Watch for updates from Nicole LaSlavic at aaronline.com.
To read these and other bills, track bills and stay updated go to the Arizona State Legislature website.