News, Legislative Update

Legislative and Accountancy Board Update – December 2020

Published on December 8, 2020

This month’s update includes information on the Arizona State Board of Accountancy’s December meeting, Governor Ducey’s latest executive orders and PPP tax deductibility. Also included is information on the Arizona Legislature, an ASCPA podcast on income tax conformity and our inaugural Advocacy Roundtable event.

State Board of Accountancy

At this month’s State Board of Accountancy meeting, staff noted an increase in registrant name changes after a Board email was sent reminding CPAs to have the same name registered with the Board as used in practice. The Society would like to remind members that in addition to the name requirement, your address of record with the Board must be updated within 30 days of a change. With many working remotely due to the pandemic, we encourage you to make sure your mailing address is up to date with the Board using their Change of Address form.

Executive Orders

Earlier this month Governor Ducey issued three new executive orders relating to the COVID-19 pandemic. Executive Order 2020-59 stipulates that organized events of more than 50 people are prohibited unless the city, town or county determines adequate safety precautions are documented by the organizer as part of the request. It also requires the city, town or county to post on their website the mitigation efforts required of the event organizer for approved events. Executive Order 2020-58 provides that when a COVID-19 vaccine becomes available it will be free to Arizonans, and Executive Order 2020-60 eases restrictions for restaurants offering outdoor dining by allowing the Department of Liquor Licenses and Control to authorize temporary extension of premises for businesses.

PPP Deductibility & Targeted Penalty Relief

The ASCPA signed onto a letter from the AICPA to Congressional leadership urging the inclusion of clarifying language that qualified business expenses under the PPP be tax deductible. The letter included all 55 U.S. state and territory CPA societies. We also reached out to Arizona’s Congressional delegation urging targeted penalty relief for late filings and payments due to COVID-19.

2021 – 2022 Arizona Legislative Committees

The House Committees and Senate Committees for the 55th Legislature have been announced. House Ways & Means will be chaired by Rep. Shawnna Bolick (R-Phoenix) with Rep. Brenda Barton (R-Payson) as the vice-chair. Senate Finance chair will be Sen. David Livingston (R-Peoria) and Sen. Vince Leach (R-Tucson) will serve as vice-chair.

Arizona Legislature

After news of former New York Mayor Rudy Giuliani testing positive for COVID-19, the Arizona Senate and House of Representatives closed for the week of Dec. 6. The closure was in response to at least 15 current and incoming legislators coming into close contact with Giuliani on Nov. 30. Prior to the exposure, state legislative leadership was developing safety protocols for the 2021 session. With rising uncertainty, there is speculation that the Arizona Legislature will convene the next session in January to quickly address a handful of high priority matters and then recess until COVID-19 is more under control. No definite decision has been made public at this time.

Federal Income Tax Conformity

Listen to an ASCPA Podcast on income tax conformity for an in-depth overview of the history and processes behind this annual legislative exercise. Thanks to ASCPA members David Walser, Anne Cornelius, Ed Zollars and Jared Van Arsdale for providing their insights and expertise.

Advocacy Roundtable Event

The ASCPA would like to thank Senate Majority Leader Rick Gray, Senator Sean Bowie, House Majority Leader Ben Toma, Representative Alma Hernandez and Representative Jennifer Pawlik for participating in the inaugural Advocacy Roundtable event earlier this month.

For additional information on our advocacy activities, please contact John Baumer.