AZ HB2058

Amends the school tuition organization (STO) tax credit cap structure for contributions made by taxpayers under Arizona tax law.

Maintains the existing $10 million aggregate annual cap on combined STO tax credits through fiscal year 2016-2017, with a 20% annual increase during that period.

Beginning in fiscal year 2017-2018, the annual 20% increase to the cap is replaced with a conditional growth trigger: the cap increases by 20% only if either the transaction privilege tax growth rate or total nonfarm employment growth rate is 2% or higher.

If both the transaction privilege tax growth rate and nonfarm employment growth rate are below 2%, the director of the office of strategic planning and budgeting and director of the joint legislative budget committee must jointly notify the department of revenue by February 1, and the cap remains unchanged from the previous year.

Defines "transaction privilege tax growth rate" as the percentage change in state revenues from the prior calendar year and "total nonfarm employment growth rate" as the seasonally adjusted employment change, both to be reported by relevant state agencies.