AZ SB1221

Establishes a financial institutions data match system allowing the Department of Revenue to enter quarterly agreements with banks and financial institutions to identify and collect delinquent taxes, with data exchanges limited to delinquent taxpayer information.

Extends the statute of limitations for tax collection actions and levies from 6 years to 10 years after the tax becomes final, with exceptions for written extensions and stays in enforced collection.

Increases the privilege license fee for transaction privilege tax from $12 to $50 and changes licenses from indefinite to annual renewal requirement.

Requires payroll service providers filing withholding taxes on behalf of employers to file and pay electronically, with a $25 penalty for non-compliance.

Appropriates $8,494,800 and 160 FTE positions to the Department of Revenue for fiscal year 2010-2011, including funding for temporary tax collectors, auditors, license compliance officers, and bank levy automation.