AZ SCR1040

Phases out Arizona state income tax gradually through December 31, 2031, with tax rates declining annually across all income brackets and filing statuses.

Creates a tiered schedule reducing individual income tax rates from 2.59% (lowest bracket) in 2018 down to 0% by January 1, 2032 for all taxpayers.

Adjusts income bracket thresholds annually based on the metropolitan Phoenix consumer price index, with minimum thresholds that cannot decrease from prior year levels.

Requires voter approval through ballot proposition at the next general election before taking effect.

Eliminates all Arizona state individual income tax permanently for taxable years beginning after December 31, 2031.