Friday, April 17, 2009

Now

After talking to someone who doesn't like to talk about politics, he asked me "When will we see the change? ...in 50 years?"

Well, I received an email today from our state government that answered this question: May 1st 2009.

On May 1st our state income taxes are going up!

And our State Government is also allowing criminals to not get penalized for a brief window!!! How unfair.


Read the email below to see this terrible news:

Arizona Withholding Changes

Senate Bill 1185 amended the amounts required to be withheld for Arizona withholding purposes. Currently the amount required to be withheld is a percentage of federal withholding. For amounts withheld through April 30, 2009 the amount required to be withheld, at the employee's election, is 10%, 19%, 23%, 25%, 31% or 37% for individuals whose annual compensation is less than $15,000. For individuals whose annual compensation is more than $15,000 the amount that is required to be withheld is 19%, 23%, 25%, 31% or 37%.

For income tax withheld on or after May 1, 2009 through December 31, 2009, the percentages will be increased as follows:

Rates for May 1, 2009 through December 31, 2009
Old New rate
10% 11.5%
19% 21.9%
23% 26.5%
25% 28.8%
31% 35.7%
37% 42.6%


For income tax withheld on or after January 1, 2010 through June 30, 2010, the percentages will be decreased as follows:

Rates for January 1, 2010 through June 30, 2010
Old New rate
11.5% 10.7%
21.9% 20.3%
26.5% 24.5%
28.8% 26.7%
35.7% 33.1%
42.6% 39.5%


For income tax withheld on or after July 1, 2010, the amount withheld will no longer be a percentage of federal withholding. The amounts withheld must be based on tables prescribed by the department.

For more information about this withholding law change, visit our website at www.azdor.gov.

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Arizona Tax Amnesty Program

The Arizona Department of Revenue is offering a tax amnesty program that will run from May 1 - June 1, 2009. This an opportunity for those who live, work, or do business in Arizona and owe back taxes to the state of Arizona or underreported any taxes in past years, to correct those issues with a reduced rate of interest and no civil penalties.

For more information, visit the Tax Amnesty website at http://www.azdor.gov/taxamnesty. If you have specific questions, please contact the Amnesty Hotline at 602-364-3550.