HB 2069 Summary

• Amends Arizona's corporate income tax apportionment formula for taxable years beginning after December 31, 2016, allowing taxpayers to elect between a three-factor formula (property, payroll, and double sales factor) or a sales-factor-only method.

• Applies different rules based on location: taxpayers outside nonattainment areas A and B may use the sales-factor-only method, while all other taxpayers must use either the three-factor formula or an alternative formula weighting the sales factor more heavily (8 times vs. 2 times).

• Requires the Joint Legislative Budget Committee to conduct an economic impact analysis and report on corporations using the enhanced sales factor formula, with results due by July 1, 2016.

• Makes the tax changes conditional on corporations announcing capital investment projects exceeding a specified dollar amount outside nonattainment areas A and B by December 15, 2016, with at least $1 billion in aggregate project costs actually commenced by that date.

• Establishes annual reporting requirements for participating corporations to track project progress, spending, and status to the Joint Legislative Budget Committee, governor's office, Department of Revenue, county assessors, and Secretary of State.