Arizona § 35-512 Authority to comply with federal income tax laws

Arizona Statutes

§ 35-512 — Authority to comply with federal income tax laws

Arizona § 35-512

Title 35Arizona Revised Statutes

Ch. 3PUBLIC INDEBTEDNESS

Art. 7Federal Income Tax Considerations

This text of Arizona § 35-512 (Authority to comply with federal income tax laws) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 35-512 (2026).

Text

A.The governing body of any department, agency, instrumentality of this state or any political subdivision may make any covenant, order any rebate, file any tax return, report any information and order the limitation on the yield of any investment made with the proceeds from the sale of its bonds or with taxes, revenues or other income pledged, held in trust or otherwise used to pay principal, interest and premium, if any, on its bonds in consideration for any federal tax benefits, payments or credits relating to a bond issued under any provision of law, including federal tax credits, federal subsidy payments and retention of the exemption from federal income taxes for the interest income on a bond issued.

B.To induce prospective purchasers to purchase bonds, the governing body of any d

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A. The governing body of any department, agency, instrumentality of this state or any political subdivision may make any covenant, order any rebate, file any tax return, report any information and order the limitation on the yield of any investment made with the proceeds from the sale of its bonds or with taxes, revenues or other income pledged, held in trust or otherwise used to pay principal, interest and premium, if any, on its bonds in consideration for any federal tax benefits, payments or credits relating to a bond issued under any provision of law, including federal tax credits, federal subsidy payments and retention of the exemption from federal income taxes for the interest income on a bond issued.

B. To induce prospective purchasers to purchase bonds, the governing body of any department, agency or instrumentality of this state or any political subdivision may provide in any resolution, ordinance, indenture or contract authorizing or providing for the issuance of bonds, or in the bonds themselves, that in the event the interest on such bonds is declared to be subject to federal income taxation in a final decision of a court having jurisdiction in the matter and on such additional conditions as the governing body may prescribe, the interest rate, including prior interest paid if applicable, may increase to a predetermined rate. The predetermined rate may be calculated in any manner. This subsection shall not be construed to allow interest rates to increase above the maximum rate that otherwise may be provided by law, election or contractual agreement.