HB 2497 Summary

• Repeals sections 43-243, 43-244, and the version of 43-1011 amended by Laws 2021, chapter 412, which had established graduated income tax rate reductions.

• Establishes a flat 2.5% income tax rate for taxable years 2021-2022 and reduces it to a flat 1.5% rate for taxable years beginning after December 31, 2022, replacing the previously scheduled graduated rate structure.

• Modifies trust and estate income tax rates to match individual rates: 2.5% for 2021-2022 and 1.5% for taxable years after December 31, 2022.

• Modifies Arizona small business income tax rates to 2.5% for 2021-2022 and 1.5% for taxable years after December 31, 2022, replacing the previously scheduled multi-year reduction schedule.

• Applies all changes retroactively to taxable years beginning after December 31, 2021.