AZ SB1034

Amends Arizona Revised Statutes section 43-1022 to increase the tax subtraction for retired or retainer pay of uniformed services of the United States from $2,500 to $3,500 for taxable years beginning after December 31, 2018.

The increased subtraction amount of $3,500 applies to benefits, annuities, and pensions received as retired or retainer pay from the uniformed services, including military retirement pay.

Grandfathers existing law by maintaining the $2,500 subtraction limit for taxable years through December 31, 2018.

The act becomes effective on December 31, 2019.