AZ HB2654

Repeals school tuition organization (STO) tax credit provisions from Arizona Revised Statutes, including sections 20-224.06, 20-224.07, 43-1089, 43-1183, and 43-1184, and eliminates title 43, chapters 15 and 16 entirely.

Amends section 20-224 to remove references to STO tax credits while preserving other insurance premium tax credit eligibility under sections 20-224.03 and 20-224.04.

Removes STO-related withholding provisions from section 43-401, eliminating employer authority to reduce employee withholding for STO contributions and related payment obligations to qualifying school tuition organizations.

Removes STO contribution deductions from income tax calculations by amending sections 43-1021 and 43-1121, which previously allowed taxpayers to add back deductions for contributions to school tuition organizations.

Requires a two-thirds affirmative vote of both legislative houses for enactment and takes effect immediately upon gubernatorial signature or upon a three-fourths override vote if vetoed.