HB 4029 Arizona House · 57th Legislature - Second Regular Session

income tax changes; notification; forms

HB 4029 requires Arizona's governor and legislature to annually evaluate whether aligning state income tax laws with federal tax code changes would impact state revenue by $100 million or more. If so, the governor must notify legislative leaders by September 30 on whether a special session is needed to adjust state law. The bill also creates two new simplified tax forms for eligible individual taxpayers (e.g., those using optional tax tables or claiming basic deductions) and mandates electronic filing for tax preparers handling over 10 annual returns, with limited exemptions for those lacking computer or internet access. These changes directly affect Arizona taxpayers, preparers, and the state budget process.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

House Passage

Feb 2026

Senate Passage

Governor

Introduced Feb 9, 2026 Last action Mar 23, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version (02/26/2026) · 5 edits · Feb 26, 2026

MODERATE

The bill was reorganized and expanded to include new reporting requirements for the Governor and Director of Revenue regarding federal tax law changes and tax expenditures. It also added a new statute requiring the Department of Revenue to prepare a simplified tax return form for specific groups of taxpayers who previously only had access to a short form.

Scope change

The bill's scope expanded from amending two statutes to amending three statutes by adding a new section (41-112) and modifying the duties of the Director of Revenue in section 42-1005.

REQUIREMENT

Added a new requirement for the Governor to notify the Legislature if federal tax law changes are projected to impact state revenue by $100 million or more, triggering a potential special session.

Added new duties for the Director of Revenue to report on lost revenue from tax expenditures and to submit annual summaries of Internal Revenue Code changes.

ELIGIBILITY

Created a new 'simplified return form' for taxpayers who meet specific criteria, such as being residents for the full year and not claiming exemptions, distinct from the existing 'short form'.

TIMELINE

Changed the deadline for the Governor's notification regarding federal tax changes from September 30 to before September 30 of each year in which the revenue impact exceeds the threshold.

TECHNICAL

Corrected formatting errors and section numbering inconsistencies found in the original introduced version.

Floor votes · House Feb 26, 2026

How they voted

31–23

Passed · 6 other

Total votes 60

Feb 26, 2026

D Democratic27

23 Nay 4

85% Nay

R Republican33

31 Yea 2

93% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 23, 2026

Upper · Passed

DPA

upper

Feb 26, 2026

Lower · Passed

PASSED

lower

Feb 23, 2026

Lower · Passed

DPA

lower

Feb 11, 2026

Lower · Passed

DPA

lower

1 primary · 0 co-sponsors