Guidance for Taxpayers Following Prop 208 Ruling

Phoenix, AZ—The Arizona Department of Revenue is issuing the following guidance for taxpayers who are affected by the recent Maricopa County Superior Court ruling striking down the surcharge imposed by Proposition 208.

Taxpayers Who Have Already Filed Don’t Need to Amend Their Returns

Although this late-breaking change has occurred during tax season, ADOR is working alongside its tax software vendor partners to amend its individual income tax forms and tax administration system in response to the law change. Due to tax law changes made by the Legislature in 2021, however, the change will not impact an individual’s overall income tax liability. As a result, taxpayers who file their Arizona individual income tax returns using current forms and instructions will not need to amend their returns. The Department will hold these returns and process them correctly once it has modified its tax system to remove the surcharge and amend the tax bracket rates. At that time, ADOR will automatically adjust the returns to provide for the correct distribution of monies.

What If I Haven't Filed?

As an Arizona taxpayer, proceed to file your return using the current form and following the current instructions. Returns will be due on Monday, April 18, 2022, unless you request an extension on or before that date.

As mentioned above, ADOR is working as quickly as possible to revise individual income tax forms and assist its tax software vendor partners in changing their individual tax forms and tax brackets. The Department will then apply the changes to your filed return with no additional action required from you. As previously stated, the changes will not impact an individual's overall tax liability.

More background and information can be found here.

Tuesday, March 15, 2022