Arizona tax department would warn lawmakers before adopting tax interpretations that hurt taxpayers

The department would notify the chairs of the Senate finance committee and the House ways and means committee before adopting a proposed new interpretation or application of tax law that adversely affects taxpayers. This applies to new interpretations or applications of the state's tax laws and income tax laws that would adversely affect taxpayers going forward. An affected taxpayer may also send the notice. If the committee chairs hold a hearing, the department must testify on why the new interpretation or application is necessary. The bill does not require the chairs to hold a hearing. Lawmakers state the hearing is meant to educate the public, allow public input, and increase transparency without politicizing tax administration. The notice must come before the new interpretation or application is adopted.