Arizona Governor Signs Law Amending Individual Income Tax Rate Applicable to Electing S Corporations, Partnerships

The Arizona Governor March 28 signed a law amending the individual income tax rate applicable to electing S corporations or partnerships. The law includes measures: 1) stating that for taxable years beginning from and after Dec. 31, 2021, the partners or shareholders of a business that is treated as a partnership or S corporation for federal income tax purposes may consent to be taxed at the entity level at the same tax rate as the highest tax rate prescribed; 2) applying the prescribed rate to the entire portion of the entity’s taxable income that is attributable to its resident partners ...