SB 1464
Initials VP/DD Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
Senate: FIN DP 6-1-0-0 | 3rd Read 17-11-2-0-0
House: WM DP 5-4-0-0
SB 1464: tax laws; interpretation; application; hearing
Sponsor: Senator Mesnard, LD 13
Caucus & COW
Overview
Requires the Department of Revenue (DOR) to notify the chairpersons of the Senate Finance
committee, House Ways and Means committee or their successor committees if a new
interpretation or application of any provision of Title 42 or 43 will adversely affect taxpayers
prospectively and requires DOR to testify regarding the necessity of the new interpretation
or application if the committees hold a hearing.
History
DOR cannot retroactively apply any newly enacted law retroactively or in a way which would
penalize a taxpayer in compliance with previous law unless it is authorized by law. If DOR
adopts a new interpretation or application of any provision of Title 42 or 43 or determines
that any of those provisions applies to a new or additional category or type of taxpayer, and
the change in interpretation or application is not because of a change in law: 1) the change
would apply prospectively unless it is favorable to taxpayers; 2) DOR will not assess any tax,
penalty or interest retroactively due to the change in interpretation or application; and 3) the
change in an affirmative defense in any administrative or judicial action for retroactive
assessment of tax, interest and penalties to taxable periods before the adoption of the new
interpretation or application.
DOR shall not refund tax liabilities, penalties and interest paid before a new interpretation
or application of Title 42, Chapter 5 unless the taxpayer provides satisfactory evidence that
the amount refunded will be returned to the person who paid an added charge to cover the
tax. Policies and procedures adopted by administrative rule, tax ruling, tax procedure or
instructions to a tax return are included as new interpretation or application (A.R.S. § 42-
2078).
Provisions
1. Requires DOR, and allows affected taxpayers, to notify the chairpersons of the Senate
Finance committee, House Ways and Means committee or their successor committees if
a newly proposed interpretation or application of any provision of Title 42 or 43 will
adversely affect taxpayers prospectively, before the adoption of a new interpretation or
application. (Sec. 1)
2. Requires DOR to testify regarding the reasons why the new interpretation or application
is necessary if the chairpersons of the Senate Finance committee, House Ways and Means
committee or their successor committees hold a hearing on the new interpretation's or
application's impact on taxpayers. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1464
Initials VP/DD Page 2 Caucus & COW
3. Makes conforming changes. (Sec. 1)