HB 2601
Initials VP/DD Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
House: WM DP 5-4-0-0
HB 2601: income tax; exemption; minors
Sponsor: Representative Kupper, LD 25
Caucus & COW
Overview
Exempts individuals under 18 years of age whose Arizona gross income is $50,000 or less in
a taxable year regardless of the source or nature of the income and excludes individuals under
18 years of age from being subject to withholding by an employer.
History
Employees who are under the age of 18 are not excluded from withholding by employers
(A.R.S. § 43-403).
Arizona currently taxes 2.5% of an individual's taxable income (A.R.S. § 43-1011). Taxable
income is defined in statute as adjusted gross income less any applicable deductions. Arizona
gross income is defined as the individuals federal adjusted gross income for the taxable year
(A.R.S. § 43-1001).
Provisions
1. Mandates that the first $50,000 paid to an employee under 18 years of age is not subject
to withholding by an employer. (Sec. 1)
2. Changes the article heading of title 43, chapter 10, article 4 from Deductions to
Deductions and Exemptions. (Sec. 2)
3. Establishes an income tax exemption for individuals under the age of 18 and whose
Arizona gross income is $50,000 or less for the taxable year regardless of the source or
nature of the income. (Sec. 3)
4. Requires the Department of Revenue to establish a process of verifying the eligibility of
the exemption. (Sec. 3)
5. Contains an applicability clause. (Sec. 4)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal Note