SB 1108 - Tax Omnibus Bill Summary

• Imposes annual tax on electric, hybrid, and alternative fuel vehicles: $110 for vehicles powered only by electricity/natural gas/propane, $44 for hybrid combinations, effective June 30, 2021.

• Reduces state equalization assistance property tax rates for schools: from $0.4426 in tax year 2020 to $0.4263 (2021), $0.3430 (2022), and $0.2745 (2023).

• Increases dependent tax credit amounts: from $100 to $120 for dependents under 17 years old and from $25 to $30 for dependents 17 and older.

• Adjusts property tax assessment valuations for Class One property: reduces percentage from 18% to 17.5% for tax years 2022-2023 and to 17% beginning December 31, 2022.

• Makes technical corrections to Arizona tax code including removal of depreciation add-backs, adjustments to net operating loss provisions, and changes to fire district property tax levy limits for tax years 2022-2023.