tax laws; interpretation; application; hearing

SB 1464 would have required Arizona's tax department to notify lawmakers and hold hearings before changing tax interpretations that harm taxpayers. It would have barred retroactive penalties for taxpayers who followed previous rules and given them a legal defense against retroactive tax assessments based on new interpretations. The bill also prevented retroactive tax assessments for future tax years unless the change was favorable to taxpayers, though refunds for past overpayments would require proof of extra charges. The bill passed the legislature but was vetoed by the governor in May 2025.