AZ HB2423

Freezes Arizona corporate income tax rate at 5.5 percent on net income (minimum $50) for taxable years beginning after December 31, 2016, superseding the rates in section 43-1111.

Contingent freeze applies only if the statewide high school graduation rate does not reach 95 percent in the preceding school year.

Superintendent of Public Instruction must determine annually whether the 95 percent high school graduation rate goal has been achieved following each fiscal year.

Superintendent must report findings to the governor, Department of Revenue director, Senate president, and House speaker by December 1 each year.

Corporations remain exempt from the tax if they qualify under existing exemption provisions in sections 43-1126, 43-1201, or other law.