SB1106

THE CONTEXT: The Arizona Legislature periodically updates the statutory definition of the U. S.

WHAT THE BILL DID: Retroactive to January 1, 2025, conforms Arizona tax statutes to the U. S.

WHY IT MATTERED: The practical reason for this bill was to put public resources toward the named state purpose through an accountable appropriation. It would the Joint Legislative Budget Committee fiscal note estimates that S.B. 1106 would reduce state General Fund revenues by $441.3 million in FY 2026, $337.2 million in FY 2027, $363.1 million in FY 2028 and $296.6 million in FY 2029 ( JLBC Fiscal Note ). Provisions Conformity, and would also updates the statutory definition of Internal Revenue Code to include all provisions in effect as of January 1, 2026, with the specific adoption of all retroactive effective dates, excluding any changes to the U.S. IRC enacted after January 1,, rather than leave the current rule unchanged.