AZ SB1577

Establishes a formula for the Joint Legislative Budget Committee to annually determine state general fund revenue growth limits based on fiscal year 2022-2023 baseline revenues adjusted for inflation and population growth.

Defines "structural surplus" as the difference between ongoing state general fund revenues and expenditures after adjustments, and "Arizona taxpayer return" as 50% of the structural surplus for the following fiscal year.

Requires the Department of Revenue to reduce individual income tax rates annually beginning in tax year 2023 by an amount equal to the Arizona taxpayer return calculated under the new formula.

Uses the metropolitan Phoenix consumer price index and U.S. Census Bureau population estimates to calculate annual inflation and population growth adjustments to the revenue growth limit.