surplus; income tax rate; reduction

This bill (SCR 1014) proposes a voter-approved mechanism to reduce Arizona's individual income tax rates starting in 2028. It requires the legislature to calculate a "structural surplus" when state tax revenue exceeds a growth limit tied to inflation and population growth. If a surplus exists, 50% of it ("Arizona taxpayer return") would automatically lower income tax rates for the following year. The policy change would affect all Arizona individual income tax filers, but only if voters approve it at the next general election. The bill is currently awaiting voter approval after passing the legislature.