The first bill to be heard by Arizona House of Representatives members, which is projected to decrease the state’s revenue by about $1.8 billion from corporate income tax breaks over four years, passed two committee meetings on Wednesday. Rep. David Livingston, R-Peoria, pictured here, is the bill’s sponsor.
By Jakob Thorington Arizona Capitol Times January 11, 2023
The first bill to be heard by Arizona House of Representatives members, which is projected to reduce the state’s revenue by about $1.8 billion from corporate income tax breaks over four years, passed two committee meetings on Wednesday.
House Ways and Means and House Appropriations committee members heard HB 2003, which would reduce the corporate income tax rate to 2.5% by fiscal year 2027. The bill’s sponsor is Rep. David Livingston, R-Peoria.
The current corporate income tax rate in Arizona is 4.9%. Livingston’s bill would reduce the corporate income tax from 4.9% to 4% in 2023 and then subsequently reduce the tax by 0.5% each year through fiscal year 2027.
In 2013, the state’s corporate income tax was 6.968% and it dropped over a four-year period to the current rate. Livingston told committee members in Ways and Means that he hopes his bill creates a similar effect because corporate income tax revenue almost doubled when the rate was cut.
