Arizona House Bill HB2365

Arizona 2025 Regular Session

• Introduced: 1/23/25

Caption

Corporate income tax; disclosure; database

Impact

The implementation of HB2365 would amend the Arizona Revised Statutes by adding a new section that specifies the scope and details of the required disclosures. This includes information such as gross income, apportionment factors, and tax credits claimed. The digital database created from these disclosures would serve as a public resource, increasing accessibility to corporate financial information and potentially influencing state tax policies and corporate governance standards.

Summary

House Bill 2365 introduces a requirement for publicly traded corporations operating in Arizona to file comprehensive corporate disclosure statements annually. This bill aims to enhance transparency and accountability in corporate financial reporting by mandating that these corporations provide a variety of financial data and ownership structures to a public database. The requirement applies to corporations traded on both domestic and foreign stock exchanges and those with substantial ownership by such corporations who conduct business within the state.

Contention

While supporters of the bill argue that it will foster greater corporate accountability and facilitate the state’s ability to monitor tax compliance, critics may view these additional requirements as burdensome for companies, potentially leading to increased compliance costs. There is also concern that the bill's implementation could disproportionately affect smaller publicly traded companies or those operating marginally in the state, raising questions about the efficacy and fairness of such legislative measures.