The Arizona Department of Revenue (ADOR) has issued the following guidance for taxpayers regarding the recent ruling by the Maricopa County Superior Court ruling, striking down the surcharge imposed by Proposition 208.
Taxpayers Who Have Already Filed Don’t Need to Amend Their Returns
The ADOR is working to amend its individual income tax forms and tax administration system in response to the Court’s ruling. Taxpayers who file their Arizona individual income tax returns using current forms and instructions will not need to amend their returns. The Department will hold these returns and process them correctly once it has modified its tax system to remove the surcharge and amend the tax bracket rates. At that time, ADOR will automatically adjust the returns to provide for the correct distribution of monies.
What If I Haven’t Filed?
Arizona taxpayers should file their individual income tax returns using the current form and following the current instructions. Returns will be due on Monday, April 18, 2022, unless an extension is filed on or before that date.
As mentioned above, ADOR is working to revise individual income tax forms and assist its tax software vendor partners in changing their individual tax forms and tax brackets. The Department will then apply the changes to your filed return with no additional action required from you.
Note: the changes will not impact an individual’s overall tax liability.
If you have any concerns, or would like assistance in building your understanding of these changes and applicability to you, please contact the trusted advisors on REDW’s state and local tax (SALT) team. We welcome your questions.