employer surcharge; workforce development

HB2461 - 572R - I Ver

REFERENCE TITLE:
employer surcharge; workforce development

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2461

Introduced by

Representatives
Sandoval: Abeytia, Aguilar, Austin, Blattman, Connolly, Contreras L,
Contreras P, Crews, Garcia, Liguori, Luna-N�jera, M�rquez, Mathis, Peshlakai,
Simacek, Stahl Hamilton, Tsosie, Villegas;� Senators Alston, Epstein,
Gabald�n, Kuby

AN
ACT

amending title 41, chapter 53, article 1,
Arizona Revised Statutes, by adding section 41-5304; amending title 43,
chapter 10, article 2, Arizona Revised Statutes, by adding section 43-1015;
amending title 43, chapter 11, article 2, Arizona Revised Statutes, by adding
section 43-1112; amending title 43, chapter 17, article 2, Arizona
Revised Statutes, by adding section 43-1712; relating to taxation of
income.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 41, chapter 53, article 1,
Arizona Revised Statutes, is amended by adding section 41-5304, to read:

START_STATUTE
41-5304.

Community college apprenticeship and workforce development
program fund; rules; definition

A. The community college
apprenticeship and workforce development program fund is established consisting
of monies deposited pursuant to sections 43-1015, 43-1112 and 43-1712.
The Office shall administer the fund.� Monies in the fund are continuously
appropriated.

B. The office shall establish an
application process for community colleges to apply for and receive monies from
the fund for the development and administration of apprenticeship and workforce
development programs at a community college.

C. The office shall adopt rules and
prescribe forms to administer this section.

D. For the purposes of this section,
"community college" has the same meaning prescribed in section 15-1401.��

END_STATUTE

Sec. 2. Title 43, chapter 10, article 2,
Arizona Revised Statutes, is amended by adding section 43-1015, to read:

START_STATUTE
43-1015.

Employer surcharge for community college apprenticeship and
workforce development programs

A. In addition to any other tax
imposed by this chapter, For taxable years beginning from and after December
31, 2026, a taxpayer who is the owner of a business that operates in this state
and that employs fifty or more employees shall pay a community college
apprenticeship and workforce development program surcharge in an amount equal
to one percent of the amount of payroll taxes that the taxpayer paid during the
taxable year.�

B. Co-owners of a business,
including partners in a partnership, members of a limited liability company and
shareholders of an S corporation as defined in section 1361 of the
internal revenue code, shall each pay the pro rata share of the surcharge
required under this section based on ownership interests.

C. Notwithstanding sections 42-1116
and 43-206, the department shall separately account for the revenues
collected pursuant to this section and deposit, pursuant to sections 35-146
and 35-147, those revenues in the community college apprenticeship and
workforce development program fund established by section 41-5304.
END_STATUTE

Sec. 3. Title 43, chapter 11, article 2,
Arizona Revised Statutes, is amended by adding section 43-1112, to read:

START_STATUTE
43-1112.

Employer surcharge for community college apprenticeship and
workforce development programs

A. In addition to any other tax
imposed by this chapter, For taxable years beginning from and after December
31, 2026, a corporation that operates in this state and that employs fifty or
more employees shall pay a community college apprenticeship and workforce
development program surcharge in an amount equal to one percent of the amount
of payroll taxes that the corporation paid during the taxable year.�

B. Notwithstanding sections 42-1116
and 43-206, the department shall separately account for the revenues
collected pursuant to this section and deposit, pursuant to sections 35-146
and 35-147, those revenues in the community college apprenticeship and
workforce development program fund established by section 41-5304.
END_STATUTE

Sec. 4. Title 43, chapter 17, article 2,
Arizona Revised Statutes, is amended by adding section 43-1712, to read:

START_STATUTE
43-1712.

Employer surcharge for community college apprenticeship and
workforce development programs

A. In addition to any other tax
imposed by this chapter, for taxable years beginning from and after December
31, 2026, an Arizona small business taxpayer that operates in this state and
that employs fifty or more employees shall pay a community college
apprenticeship and workforce development program surcharge in an amount equal
to one percent of the amount of payroll taxes that the Arizona small business
taxpayer paid during the taxable year.

B. Notwithstanding sections 42-1116
and 43-206, the department shall separately account for the revenues
collected pursuant to this section and deposit, pursuant to sections 35-146
and 35-147, those revenues in the community college apprenticeship and
workforce development program fund established by section 41-5304.
END_STATUTE

Sec. 5.
Requirements for enactment; two-thirds vote

Pursuant to article IX, section 22,
Constitution of Arizona, this act is effective only on the affirmative vote of
at least two-thirds of the members of each house of the legislature and is
effective immediately on the signature of the governor or, if the governor
vetoes this act, on the subsequent affirmative vote of at least three-fourths
of the members of each house of the legislature.