AZ SB1299

Suspends certain tax credits and rate reductions until a "trigger event" occurs, defined as when Arizona meets one or more of three education performance benchmarks: per-student K-12 funding equals or exceeds the national median, at least 94% of third graders read at grade level, or high school graduation rate reaches 93% or higher.

Reduces the assessed valuation of Class One property to 20% of full cash value (from current law) until a trigger event occurs.

Requires taxpayers to include the full amount of net long-term capital gains in Arizona taxable income (eliminating previous exclusions) until a trigger event occurs.

Establishes a flat corporate income tax rate of 6.968% of net income (with a $50 minimum) until a trigger event occurs.

Requires the Superintendent of Public Instruction to determine annually whether a trigger event has occurred and report findings by December 1 to state leadership; requires a two-thirds vote for enactment and takes effect immediately upon the governor's signature.