This month’s update includes information on the State Board of Accountancy meeting, the coming 2024 legislative session, the ASCPA Income Tax Conformity Briefing and Arizona fiscal highlights.
Arizona State Board of Accountancy
At the December meeting of the Board of Accountancy, the Board discussed the ongoing process of CPA Evolution and updates made to online forms and processes. Monica Petersen, the executive director, discussed the request to pursue an expedited rulemaking change which includes the credit extension from 18 to 30 months. This request was submitted to the Governor’s Office at the end of October. Staff is working with the Governor’s staff and is awaiting approval or denial of the request.
The Board also discussed matters related to the Principal Place of Business and the use of the CPA designation while on inactive, retired or suspended status.
The past several years have been challenging for tax practitioners. Income tax conformity has been an arduous effort at the Legislature due to substantial federal tax policy changes and major impacts to Arizona’s General Fund.
The ASCPA educates lawmakers on the importance of this annual exercise and encourages them to pass the legislation as early as possible. On Dec. 14, the ASCPA hosted our third annual Tax Conformity Debrief to connect legislators and tax practitioners to share the importance of passing conformity.
Thank you to Jared Van Arsdale, Chris Hallstrom, and Michael Lemme for attending and sharing information with our legislators.
2024 CPA Day at the Capitol
With the 2024 legislative session around the corner, we have set the date and begun planning for the 2024 CPA Day at the Capitol. The event is scheduled for Monday, February 5. Building on the successes from 2023, this coming year’s event will continue to reinforce with state legislators the resource that ASCPA and its members can be for Arizona policy.
The Joint Legislative Budget Committee (JLBC) released the Monthly Fiscal Highlights for November. In October 2023, General Fund revenue collections were $1.04 billion, which is an overall decline of 22% below October 2022. The level of collections for October generated a forecast loss of $130 million below the enacted budget revenue forecast.
The forecast loss was concentrated in the Individual Income Tax (IIT) category and predominantly attributed to an increase of 85% in tax refunds issued to taxpayers. You can view the full report, here.
For additional information on or advocacy efforts, please contact Emily Webb.