SB 1489 Summary

• Creates section 41-1275 requiring the Joint Legislative Budget Committee (JLBC) to annually determine ongoing state general fund revenues and identify amounts exceeding a calculated growth limit.

• Defines "growth limit" as fiscal year 2019-2020 ongoing revenues increased annually by the sum of inflation (based on Phoenix consumer price index) plus population growth (based on U.S. Census Bureau estimates).

• Requires the Department of Revenue to reduce individual income tax rates annually by an equal percentage, with the total reduction equal to 50% of revenues exceeding the growth limit, effective for taxable years beginning after December 31, 2020.

• Rates remain unchanged if revenues equal or fall below the growth limit in any fiscal year.