News, Legislative Update

Legislative and Accountancy Board Update – October 2018

Published on October 23, 2018

This month’s update includes information on the Arizona Department of Education’s Seal of Personal Finance, a meeting with the ADOR, Proposition 126 to ban the taxation of services and voter views on federal income tax conformity.

Arizona Department of Education’s Seal of Personal Finance

Last month, the Society participated as part of an advisory group to assist the Arizona Department of Education (ADE) create a Seal of Personal Finance. This advisory group will continue providing guidance on curriculum and other aspects of the Seal of Personal Finance, which will be earned by students as established by the passing of SB 1442, a bill sponsored by Senator Kimberly Yee. Special thanks to Lisa Johnston and Cathy Laganosky, who attended along with our lobbyists, DeMenna Public Affairs.

Meeting with the Arizona Department of Revenue (ADOR)

The Society met with ADOR Deputy Director Dr. Grant Nülle to talk about 2019 legislative priorities. Thanks to members Monica Stern and Ed Zollars for contributing to the meeting along with Cindie Hubiak and DeMenna Public Affairs. One exciting item for many of our members: the ADOR plans to launch corporate e-filing later in 2019.

Proposition 126, the Protect Arizona Taxpayers Act

With the elections around the corner, there is more focus on this proposition that would ban the taxation of services. As you know, the Society is opposed to the taxation of services for the reasons outlined in the attached brief, which was used to oppose legislation introduced in 2016 that sought to apply a tax to various services, including some CPA services. The Society is not taking a position on Proposition 126, which is in keeping with our longstanding tradition of not taking public positions on ballot items. The Society will continue to focus on educating others on the issues like this that affect our profession.

Arizona Voters Support Conformity

The ASCPA commissioned a poll of 600 voters and found that 52% are supportive of full federal income tax conformity, while 19% oppose conformity and 29% are unsure. We are encouraged to learn that so many voters support full conformity. You can help by sharing this information with your lawmakers and asking them, especially after the elections next month, to pass full conformity quickly. This will allow Arizona taxpayers to file their returns easily and on time, in addition to reducing the stress of our tax members.

For additional information on our advocacy activities, please contact Cindie Hubiak or Paul Kern.