First Regular Session S.B. 1144
COMMITTEE ON FINANCE
SENATE AMENDMENTS TO S.B. 1144
(Reference to printed bill)
Page 1, strike lines 6 through 10
Reletter to conform
Line 16, strike "allowed to expire as prescribed by law" insert "repealed"
Strike lines 27 through 43
Strike pages 2 through 72, insert:
"Sec. 2. Section 43-221, Arizona Revised Statutes, is amended to read:
43-221. Joint legislative tax expenditure review committee; committee termination; definition
A. The joint legislative income tax credit expenditure review committee is established consisting of the following members:
1. Five members of the house of representatives ways and means committee who are appointed by the speaker of the house of representatives. Not more than three appointees shall be of the same political party.
2. Five members of the senate finance committee who are appointed by the president of the senate. Not more than three appointees shall be of the same political party.
B. The committee shall determine the original purpose of existing tax credits expenditures under title 42, chapter 5 and chapters 10 and 11 of this title and establish a standard for evaluating and measuring the success or failure of the tax credits expenditures. The standard for evaluating tax credits expenditures may include:
1. The history, rationale and estimated revenue impact of the credit expenditure.
2. Whether the credit expenditure has provided a benefit to this state including, for corporate tax credits, measurable economic development, new investments, creation of new jobs or retention of existing jobs in this state.
3. Whether the credit expenditure is unnecessarily complex in the application, administration and approval process.
C. The committee shall review the individual and corporate income tax credits pursuant to the schedule prescribed in section 43‑222.
D. The committee shall use the joint legislative budget committee staff and may use the staff of the department of revenue and legislative council for assistance.
D. E. After completing the review process, the committee shall determine whether the credit tax expenditure should be amended, repealed or retained. If the credit tax expenditure is recommended to be retained or amended, the committee shall recommend a new review date and, for income tax credits, that the credit be returned to the income tax credit review schedule prescribed in section 43‑222. The next review year for income tax credits shall be the fifth full calendar year following the date the credit was reviewed. The committee shall report its findings and recommendations to the president of the senate, the speaker of the house of representatives and the governor by December 15 of the each review year that the committee reviews the credit. The committee shall provide a copy of the report to the director of the Arizona state library, archives and public records secretary of state.
E. The committee established by this section ends on July 1, 2022 pursuant to section 41‑3103.
F. For the purposes of this section, "tax expenditure" means any provision in title 42, chapter 5 or chapter 10 or 11 of this title that exempts, in whole or in part, any person, income, goods, services or property from the impact of established taxes and tax classifications, including deductions, subtractions, exclusions, exemptions, allowances and credits."
Amend title to conform