Arizona’s pte tax is 2.5% for the 2023 and 2024 tax years to align with the flat rate income tax that became effective on january 1, 2023 (the tax rate in 2022 was 2.98%). Receive email updates from the arizona department of revenue. We have a number of indicators that suggest this tax should be treated as a distribution and not an income tax for gaap purposes if you follow aicpa document
First, just like the tax in example 35, arizona provides for a tax credit that is available to be used against the various partners’/shareholders’ arizona income tax liability This article provides a summary of updates that taxpayers should be aware of as they evaluate the implications of ptet elections for tax year 2023 and beyond. Every state has handled this issue differently
