Bill Text: AZ HB2332 | 2011 | Fiftieth Legislature 1st Regular | Engrossed
Bill Title: Internal revenue code conformity policy
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2011-04-15 - Governor Signed [HB2332 Detail]
Download: Arizona-2011-HB2332-Engrossed.html
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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
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HOUSE BILL 2332 |
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AN ACT
amending section 42-5162, Arizona Revised Statutes; amending title 42, chapter 5, article 4, Arizona Revised Statutes, by adding section 42-5169; Amending title 43, chapter 1, article 1, Arizona Revised Statutes, by adding section 43-107; amending section 43-321, Arizona Revised Statutes; relating to income tax penalties and interest.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-5162, Arizona Revised Statutes, is amended to read:
42-5162. Monthly return; time for payment; extension of time; quarterly payment
A. From and after April 30, 1985, every retailer engaged in the business of making sales of tangible personal property the use, storage or consumption of which is subject to the tax imposed by this article, and every person who purchases for use, storage or consumption any such property for which the tax is not paid to the retailer, shall file a return with the department on or before the twentieth day of the month next succeeding the month in which the tax accrues. The return shall be on a form prescribed by the department and shall show the tangible personal property sold for use, storage or consumption or purchased for use, storage or consumption within the state during the preceding calendar month. Such return shall be verified by oath or affirmation of the retailer or person making the report, or his agent, and shall be accompanied by payment of the tax shown to be due. The return and tax are delinquent if not postmarked on or before the twenty-fifth day of the month when due or if not received by the department on or before the business day preceding the last business day of that month for those taxpayers electing to file by mail, or are delinquent if not received by the department on the business day preceding the last business day of the month when due for those taxpayers electing to file in person.
B. The department may, for any taxpayer whose estimated annual liability for taxes imposed by this article is between five hundred and one thousand two hundred fifty dollars, authorize such taxpayer to pay such taxes on a quarterly basis. The department may, for any taxpayer whose estimated annual liability for taxes imposed by this article is five hundred dollars or less, authorize such taxpayer to pay such taxes on an annual basis.
C. For good cause shown the department may extend the time for making a return and paying the tax, but the time for filing the return shall not be extended beyond the first day of the third month next succeeding the regular due date of the return.
Sec. 2. Title 42, chapter 5, article 4, Arizona Revised Statutes, is amended by adding section 42-5169, to read:
42-5169. Use tax declaration
If a person stores, uses or consumes tangible personal property subject to tax under this article for a nonbusiness purpose and the tax was not collected by a registered retailer, the individual shall declare the annual amount of tax due under this article on the individual’s income tax form pursuant to section 43-321.
Sec. 3. Title 43, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 43-107, to read:
43-107. Nonconformity in application of internal revenue code; abatement of penalties and interest; definitions
A. Notwithstanding sections 42-1123 and 42-1125, no interest or penalty may be assessed on a nonconformity deficiency if all of the following are true for a taxable year:
1. The taxpayer filed a return and paid the taxes due, relying on the department's published forms and instructions.
2. Conformity does not occur.
3. The department supplements its published forms and instructions related to nonconformity and requires the taxpayer to file an amended return.
4. By the extended due date of the next taxable year's return, the taxpayer amends its return to report the nonconformity deficiency and pays the additional tax in the manner prescribed by the department.
B. Notwithstanding section 42-1123, the department shall not pay interest on refunds resulting from an amended return related to nonconformity unless the refund is paid more than sixty days after the due date set forth in subsection a, paragraph 4 of this section or filing date, whichever is later.
C. For the purposes of this section:
1. "Conformity" means an amendment to section 43-105 that results in adoption of the definition of the internal revenue code for the taxable year.
2. "Nonconformity" means either:
(a) Conformity plus another amendment to this title that does not conform to specific provisions of the internal revenue code as defined in section 43-105 for the taxable year.
(b) No amendment to section 43-105 for the taxable year.
Sec. 4. Section 43-321, Arizona Revised Statutes, is amended to read:
43-321. Information required in returns
Each return required to be filed under this title shall contain the following:
1. It shall contain or be verified by a declaration that it is made under penalties of perjury. The declaration shall be written or in a form prescribed by the department pursuant to section 42-1105, subsection B.
2. A specific statement of the items of the taxpayer's gross income and the adjustments, deductions and credits allowed by this title.
3. A specific statement of the taxpayer's use tax liability pursuant to section 42-5169.
3. 4. Such other information as the department may by rule prescribe for the purpose of carrying out the provisions of this title.
