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HB2487 - 572R - I Ver
REFERENCE TITLE:
corporate income tax; disclosure; database
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 2487
Introduced by
Representatives
De Los Santos: Garcia, Travers
AN
ACT
amending title 10, chapter 1, article 3,
Arizona Revised Statutes, by adding section 10-131; relating to
corporations.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 10, chapter 1, article 3,
Arizona Revised Statutes, is amended by adding section 10-131, to read:
START_STATUTE
10-131.
Corporate disclosure statements; database; penalties; rules;
definitions
A. Each
year a publicly traded corporation, including a corporation traded on a foreign
stock exchange and a corporation with fifty percent or more of the voting stock
that is owned, directly or indirectly, by a publicly traded corporation and
that does business in this state, shall file the statement described in
subsection B of this section with the commission. the corporation
shall file The statement not more than thirty days after the tax return
required by title 43, chapter 3 is due. If the corporation is not
required to file a tax return in this state, the corporation shall file the
statement within ninety days after filing the corporation's federal tax return,
including a corporation's inclusion in a federal consolidated return.
B. The
statement must contain the following:
1. The
name of the corporation and the street address of the corporation's principal
office.
2. The
name of any corporation that owns, directly or indirectly, fifty percent or
more of the voting stock of the corporation and the street address of that
corporation's principal executive office if different from the address provided
pursuant to paragraph 1 of this subsection.
3. The
corporation's four digit North American industry classification system code
number.
4. A
unique code number, assigned by the commission, to identify the
corporation. that unique code number shall remain constant from year
to year.
5. The
following information reported on or used in preparing the corporation's tax
return filed under the requirements of title 43, chapter 3, or, in the case of
a corporation not required to file a tax return in this state, the information
that would be required to be reported on or used in preparing the tax return if
the corporation was required to file a tax return:
(
a
) The amount of Arizona gross income of the unitary group
of which the corporation is a member.
(
b
) The total cost-of-goods-sold claimed as a deduction from
Arizona gross income by the unitary group of which the corporation is a member.
(
c
) The amount of Arizona taxable income of the unitary group
of which the corporation is a member before net operating loss deductions or
apportionment.
(
d
) The property, payroll and sales apportionment factors of
the corporation as calculated on the combined report.
(
e
) The calculated overall apportionment factor in this state
for the corporation as calculated on the combined report.
(
f
) The total business income of the corporation apportioned
to this state.
(
g
) The net operating loss deduction, if any, of the
corporation apportioned to this state.
(
h
) the Total non-business income of the corporation and the
amount of non-business income allocated to this state.
(
i
) Arizona taxable income of the corporation.
(
j
) The total tax due before claiming any tax credits.
(
k
) The tax credits claimed, each credit individually
enumerated.
(
l
) The alternative minimum tax.
(
m
) The amount tax due.
(
n
) The amount of tax paid.
(
o
) the Amount of tax due paid under protest, if applicable.
6. The
following additional information:
(
a
) The total amount of deductions for management services
fees, rent and royalties and interest, license fees and similar payments for
the use of intangible property paid to any affiliated entity that is not
included in the unitary group that includes the corporation and the names and
principal office addresses of the entities to which the payments were made.
(
b
) The sales factor that would be calculated for this state
on the combined report if the corporation were required to treat as sales in
this state sales of tangible personal property to the federal government and
sales of tangible personal property shipped or delivered to a customer in a
state in which the selling corporation is not subject to a state corporate
income tax or state franchise tax measured by net income or could not be
subjected to such a tax were the state to impose it.
(
c
) A description of the source of any nonbusiness income
reported on the return and the identification of the states to which such
income was reported.
(
d
) A listing of all corporations included in the unitary
group that includes the corporation, the corporations' state identification
numbers assigned under this section, if applicable, and a listing of all
variations in the unitary group that includes the corporation used in filing
corporate income or franchise tax returns in any of the following states:
Alaska, California, Colorado, Hawaii, Idaho, Illinois, Kansas, Maine,
Minnesota, Montana, Nebraska, New Hampshire, North Dakota, Oregon, Utah or
Vermont.
(
e
) Full-time-equivalent employment of the corporation in
this state on the last day of the tax year for which the return is being filed
and for the three previous tax years.
(
f
) In the case of a publicly traded corporation incorporated
in the United States or the affiliate of the publicly traded corporation,
profits before tax reported on the securities and exchange commission form 10-K
for the corporation or the consolidated group of which the corporation is a
member for the corporate fiscal year that contains the last day of the tax year
for which the return is filed.
(
g
) Accumulated tax credit carryovers, enumerated by credit.
7. Any
other supplemental information that in the corporation's sole judgment could
facilitate proper interpretation of the information included in the statement.
c. In
lieu of the statement described in subsection B of this section, a corporation
doing business in this state but not required to file a tax return under the
requirements of title 43, chapter 3 may elect to file an alternative statement
with the commission that contains all of the following:
1. The
information described in subsection B, paragraphs 1, 2, 3 and 4.
2. An
explanation of why the corporation is not required to file a corporate income
tax return in this state.
3. Identification
of which of the following ranges the corporation's total gross receipts from
sales to purchasers in this state fell in the tax year for which the
alternative statement is filed:
(
a
) Less than $10,000,000.
(
b
) $10,000,001 to $50,000,000.
(
c
) $50,000,001 to $100,000,000.
(
d
) $100,000,001 to $250,000,000.
(
e)
$250,000,001 or more.
4. Any
other supplemental information that in the corporation's sole judgment could
facilitate proper interpretation of the information included in the statement.
D. If a
corporation files an amended tax return, the corporation shall file a revised
statement under this section within sixty calendar days after the amended
return is filed. If a corporation's tax liability for a tax year is changed as
the result of an uncontested audit adjustment or final determination of
liability by the state board of tax appeals as provided for in section 42-1253
or by a court of law as provided for in section 42-1254, the corporation shall
file a revised statement under this section within sixty calendar days of the
final determination of liability.
E. The
statements required under this section are public records. The commission shall
make the statements required under this section available to the public on an
ongoing basis in the form of a searchable database on the commission's website. The
commission shall make available, and may charge a fee to provide copies on
appropriate computer-readable media of the entire database for,
statements filed during each calendar year, including hard copies of an
individual annual statement for a specific corporation. Statements required
under this section for a particular tax year shall be publicly available until
the first day of the third calendar year after the calendar year in which the
particular tax year ends.
F. The
accuracy of the statements required under this section shall be attested to in
writing by the chief operating officer of the corporation and are subject to
audit by the department of revenue as the agent of the commission in the course
of and under the normal procedures applicable to corporate income tax return
audits. The commission shall develop and implement an oversight and
penalty system that is applicable to both the chief operating officer of the
corporation and the corporation itself to ensure that corporations doing
business in this state, including those not required to file a return in this
state, shall provide the required attestation and disclosure statements in a
timely and accurate manner. The commission shall publish the name
and penalty imposed on any corporation subject to a penalty for failing to file
the required statement or filing an inaccurate statement.
G. The
commission shall adopt rules and publish and prescribe forms and procedures as
necessary to administer this section.
H. For
the purposes of this section:
1. "Corporation":
(
a
) Means any entity subject to the tax imposed by title 43,
chapter 11 or section 11 of the internal revenue code.
(
b
) Does not include a qualified personal service corporation
as defined in section 448 of the internal revenue code.
2. "Doing
business in this state" means any of the following:
(
a
) Owning or renting real or tangible personal property that
is physically located in this state.
(
b
) Having employees, agents or representatives acting on the
corporation's behalf in this state.
(
c
) Making sales of tangible personal property to purchasers
that take possession of that property in this state.
(
d
) Performing services for customers located in this state.
(
e
) Performing services in this state.
(
f
) earning income from intangible property that has a
business situs in this state.
(
g
) Engaging in regular and systematic solicitation of SALES
in this state.
(
h
) being a partner in a partnership engaged in any of the
activities described in subdivisions (
a
) through (
g
) of this paragraph.
(
i
) being a member of a limited liability company engaged in
any of the activities described in subdivisions (
a
)
through (
g
) of this paragraph.
END_STATUTE