AZ SB1464

Prohibits the Department of Revenue from applying newly enacted tax laws retroactively or in a manner that penalizes taxpayers for complying with prior law

Requires the Department or affected taxpayers to notify legislative finance committees before adopting a new interpretation or application of tax law that adversely affects taxpayers, and allows the committees to hold hearings on the proposed changes

Specifies that changes in tax interpretation or application apply prospectively only (unless favorable to taxpayers) and prohibits retroactive assessment of taxes, penalties, or interest based on the change

Makes compliance with a prior interpretation an affirmative defense in administrative or judicial actions for retroactive tax assessment

Defines "new interpretation or application" to include policies, procedures, tax rulings, tax procedures, and tax return instructions