AZ HB2639

Imposes a 20% excise tax on performance-based fees (fees calculated by reference to investment portfolio performance) earned by partnerships and S corporations providing investment management services, effective January 1, 2019.

Defines "investment management services" as businesses providing advisory, management, acquisition, disposal, or financing services related to securities, commodities, real estate held for investment, partnership interests, and derivative contracts.

Partners providing services in investment management businesses are liable for the tax in their individual or separate capacity.

Tax revenues are collected and disposed of pursuant to existing Arizona tax administration law under article 1 of chapter 5 and section 42-1116.

Exempts the Department of Revenue from rulemaking requirements for one year after enactment; requires a two-thirds affirmative vote in both legislative chambers for passage and gubernatorial approval.