AZ SB1318

Requires the Joint Legislative Budget Committee to annually determine the growth limit and excess state tax collections beginning in fiscal year 2025-2026.

Defines "growth limit" as fiscal year 2024-2025 ongoing state general fund revenues, adjusted annually by the combined percentage change in inflation and population growth.

Establishes "Arizona taxpayer return" as 50 percent of the structural surplus for the following fiscal year, to be returned to taxpayers when ongoing revenues exceed the growth limit.

Mandates the Department of Revenue reduce individual income tax rates by the amount of the Arizona taxpayer return for each taxable year beginning after December 31, 2025.