A. The director shall be directly responsible to the governor for the direction, control and operation of the department and shall:

Terms Used In Arizona Laws 42-1005

  • Department: means the department of revenue. See Arizona Laws 42-1001
  • Director: means the director of the department. See Arizona Laws 42-1001
  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • Internal revenue code: means the United States internal revenue code of 1986, as amended and in effect as of January 1, 2019, including those provisions that became effective during 2018 with the specific adoption of their retroactive effective dates but excluding all changes to the code enacted after January 1, 2019. See Arizona Laws 42-1001
  • Property: includes both real and personal property. See Arizona Laws 1-215

1. Make such administrative rules as he deems necessary and proper to effectively administer the department and enforce this title and title 43.

2. On or before November 15 of each year issue a written report to the governor and legislature concerning the department’s activities during the year. In any election year a copy of this report shall be made available to the governor-elect and to the legislature-elect.

3. On or before December 15 of each year issue a supplemental report which shall also contain proposed legislation recommended by the department for the improvement of the system of taxation in the state.

4. In addition to the report required by paragraph 2 of this subsection, on or before November 15 of each year issue a written report to the governor and legislature detailing the approximate costs in lost revenue for all state tax expenditures in effect at the time of the report.  For the purpose of this paragraph, "tax expenditure" means any tax provision in state law which exempts, in whole or in part, any persons, income, goods, services or property from the impact of established taxes including deductions, subtractions, exclusions, exemptions, allowances and credits.

5. Annually, on or before January 10, prepare and submit to the legislature a report containing a summary of all the revisions made to the internal revenue code during the preceding calendar year.

6. Provide such assistance to the governor and the legislature as they may require.

7. Delegate such administrative functions, duties or powers as he deems necessary to carry out the efficient operation of the department.

B. The director may enter into an agreement with the taxing authority of any state which imposes a tax on or measured by income to provide that compensation paid in that state to residents of this state is exempt in that state from liability for income tax, the requirement for filing a tax return and withholding tax from compensation. Compensation paid in this state to residents of that state is reciprocally exempt from the requirements of title 43.