AZ HB2488

Phases out Arizona's capital gains tax over three years beginning December 31, 2012, allowing subtraction of 33% of net capital gains in 2012-2013, 66% in 2013-2014, and 100% beginning 2015.

Exempts capital gains from qualified small businesses (determined by Arizona Commerce Authority) from the phase-out, allowing full subtraction starting December 31, 2013.

Applies the capital gains tax phase-out to both individual taxpayers under section 43-1022 and corporations under section 43-1122.

Modifies Arizona Revised Statutes sections 43-1022 and 43-1122 to establish the progressive elimination of capital gains taxation.