corporate tax; business income; allocation

HB 2850 modifies Arizona's corporate tax rules for apportioning business income across states. It primarily affects multistate businesses operating in Arizona by changing how their taxable income is calculated. The bill allows businesses to choose a simplified method for tax years 2016-2025: instead of using complex formulas involving property, payroll, and sales factors, they may allocate tax based solely on sales within Arizona. This change applies to services and other non-tangible property sales, with specific transition rules for different tax years. The law aims to streamline tax calculations for businesses with significant in-state sales activity.