43-102. Declaration of intent
A. It is the intent of the legislature by the adoption of this title to accomplish
the following objectives:
1. To adopt the provisions of the federal internal revenue code relating to the
measurement of adjusted gross income for individuals, to the end that adjusted gross
income reported each taxable year by an individual to the internal revenue service shall
be the identical sum reported to this state, subject only to modifications contained in
this title.
2. To adopt the provisions of the federal internal revenue code relating to the
measurement of taxable income for corporations, trusts, estates and partnerships, to the
end that taxable income reported each taxable year by a corporation, trust, estate or
partnership to the internal revenue service shall be the identical sum reported to this
state, subject only to modifications contained in this title.
3. To achieve the results in paragraphs 1 and 2 by the application of the various
provisions of the federal internal revenue code relating to the definitions of income,
exceptions, deductions, accounting methods, taxation of individuals, corporations,
trusts, estates and partnerships, basis and other pertinent provisions relating to gross
income as defined, resulting in an amount called adjusted gross income for individuals
and taxable income for corporations, trusts, estates and partnerships in the internal
revenue code.
4. To impose on each resident of this state a tax measured by taxable income
wherever derived.
5. To impose on each nonresident and each corporation with a business situs in this
state a tax measured by taxable income which is the result of activity within or derived
from sources within this state.
B. Nothing contained in this title shall be construed to require a taxpayer to
include an item of income or permit a taxpayer to deduct an expense item more than once
in computing Arizona taxable income.
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