Arizona Laws 38-939. Nontaxable status of prefunding plan; intent
A. Assets transferred into or out of or held in the prefunding plan and investment income on assets in the prefunding plan are exempt from state, county and municipal taxes.
Terms Used In Arizona Laws 38-939
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Board: means the board of trustees of the system. See Arizona Laws 38-931
- Prefunding plan: means the Arizona employers' pension prefunding plan established by this article. See Arizona Laws 38-931
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
B. The legislature intends that the prefunding plan’s income not be subject to federal income tax. The board may adopt additional rules, policies and procedures as the board deems necessary or appropriate to fulfill the legislature’s intent that the prefunding plan’s income not be subject to federal income tax.
C. If the board receives notification from the United States internal revenue service that this article or any portion of this article will jeopardize the tax-exempt status of the prefunding plan’s income, the portion of this article that will cause the disqualification does not apply.