![]() ![]() The new amendment passed in June updated HB 2871 from assessing a fixed 4.5% rate to applying a graduated tax rate based on income level. This year’s update to the Arizona law was made to remove what could be seen as a penalty for those individuals. While the 2021 House Bill was a step in the right direction, imposing a fixed rate on individuals that made the entity-level election continued to negatively impact business owners that would have had lower tax rates imposed due to their income level. On July 9, 2021, Arizona Governor Doug Ducey signed Arizona House Bill 2838 into law which included addressing the federal TCJA law that adversely affected Arizona citizens. The 2017 Tax Cuts and Jobs Act (TCJA) placed a $10,000 limit on state and local tax (SALT) deduction, prompting Arizona and other states to pass laws allowing SALT to be deductible at the entity level, circumventing the TCJA’s individual tax deduction limitation. Subscribe to our quarterly State and Local Tax Digest  ![]() Cannabis Taxation from State to State: A Road Fraught with Potholes.Mid-year IRS Updates: Mileage Rates, Tax Return Backlog & the 2022 Dirty Dozen.California, Cannabis & Tax: Updates to California’s Cannabis Cultivation Tax.This was applied to the entire portion of the entity’s Arizona taxable income that was attributable to its nonresident partners and/or shareholders for the taxable year. Partnerships and S corporations were previously allowed to elect to be taxed at a fixed rate of 4.5%. The Tax Rate for Arizona Pass-Through Entities is Revised in House Bill 2871Īrizona House Bill 2871 was signed into law on June 28, 2022, revising the tax rate applicable for pass-through entities (PTEs). Implementing GASB 96 – What Tribal Leaders Need to Know Rethinking Your Retirement Strategies in 2024 Get full access to 2023 Year-End Tax Planning Guides – plus – Book a Tax Consultation REDW offers a comprehensive array of services designed to help organizations become stronger Join us and make a life changing career decisionīuilt to better meet the evolving demands of our clients Learn about our culture, history and experienced teamĬonnect with REDW’s team of experts and see how we fit your needs ![]()
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