AZ SB1683

Modifies section 43-1022 of Arizona Revised Statutes to allow a subtraction for net long-term capital gains for taxable years beginning after December 31, 2023.

Provides a 25% subtraction of net long-term capital gains for single individuals or heads of household with federal adjusted gross income not exceeding $100,000, and for married couples filing jointly with income not exceeding $200,000.

Replaces prior tiered capital gains subtraction rates (10%, 20%, 25% based on years 2012-2014) with a flat 25% rate for qualifying taxpayers.

Requires approval by at least two-thirds vote of both houses of the legislature to become effective, and requires either the governor's signature or three-fourths vote of both houses to override a gubernatorial veto.