PHOENIX – Two new laws took effect Wednesday that state officials say will benefit Arizona businesses.
House Bill 2280, signed into law by Gov. Doug Ducey on March 29, speeds the process for electronically filing and paying corporate taxes, and increases efficiency for the Arizona Department of Revenue for processing other tax types.
The legislation is part of the department’s focus on delivering better, faster and more cost-effective services for businesses, said David Briant, director of Arizona Department of Revenue.
“Among many benefits, e-filing is more secure and it’s faster to process than paper returns, which means the Department of Revenue can provide enhanced customer service for all taxpayers,” he said.
Over a multi-year phase-in period, businesses will be required to file and pay transaction privilege tax electronically. Also, annual electronic filing of annual corporate income tax, fiduciary and partnership returns will begin in tax year 2020.
Grant Nülle, deputy director of the department, pointed out that thousands of businesses already file transaction privilege tax electronically, but the overall percentage is relatively low at 31 percent.
“The phased-in approach provides the Department of Revenue time to enhance its infrastructure framework to provide an electronic filing experience for all taxpayers,” he said.
In 2016, there were more than 193,000 corporate returns filed, 1.7 transaction privilege tax returns and 3.3 million individual income tax returns.
Another law, Senate Bill 1272, eases the regulatory burden on businesses and streamlines corporate filings with the Arizona Corporation Commission. It was passed in the last legislative session.
It was created to provide consistent regulatory treatment of businesses and use technology to make government more efficient.
“This legislation furthers our work at the commission to ensure business is done at the speed of business,” ACC Chairman Tom Forese said. “The commission fully supports new businesses and our work focuses on making their success affordable and efficient.”
Highlights of the new law include:
• Filing fees for foreign nonprofit corporations decrease from $175 to $25, similar to filing fees of for-profit corporations.
• Businesses that had a filing rejected can resubmit only the corrected document, and do not have to include a copy of the first rejected document.
• Information needed on a change document is simplified by requiring name and address only.
• Corporations that are dissolving do not have to file their annual report while the dissolution is pending.
• Allowable administrative action will be more consistent among the different entities that will reduce confusion and potential for errors.