AZ SB1331

Amends Arizona Revised Statutes Section 43-1022 to modify the income tax subtraction for retired or retainer pay of uniformed services of the United States.

For taxable years through December 31, 2018, allows a subtraction of not more than $2,500 in retired or retainer military pay.

For taxable years from January 1, 2019 through December 31, 2020, increases the subtraction to not more than $3,500 in retired or retainer military pay.

For taxable years beginning January 1, 2021 and beyond, allows a full subtraction of all retired or retainer pay received by uniformed services members with no dollar limit.

Applies retroactively to taxable years beginning after December 31, 2020.