Fix Arizona property tax credit Schedule 2 thresholds

changelog.d/fix-az-ptc-schedule-2-thresholds.fixed.md

@@ -0,0 +1 @@
+Fix the Arizona property tax credit Schedule 2 thresholds, which were each one dollar low: a claimant living with others with household income of exactly $2,500, $2,650, ..., $5,500 got the next band's amount ($5,500 got none) instead of the ARS 43-1072(B)(2) amount.

policyengine_us/parameters/gov/states/az/tax/income/credits/property_tax/amount/cohabitating.yaml

@@ -1,107 +1,119 @@
 description: Arizona provides this property tax credit amount for filers cohabitating with other people, based on income.
 metadata:
   reference:
-    - title: 2024 Property Tax Refund (Credit) Claim Form 140PTC
-      href: https://azdor.gov/forms/tax-credits-forms/property-tax-refund-credit-claim-form-fillable#page=2
-    - title: 2023 Property Tax Refund (Credit) Claim Form 140PTC
-      href: https://azdor.gov/forms/tax-credits-forms/property-tax-refund-credit-claim-form-fillable#page=2
-    - title: 2022 Property Tax Refund (Credit) Claim Form 140PTC
+    - title: 2025 Property Tax Refund (Credit) Claim Form 140PTC, page 2, Schedule 2
+      href: https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140PTC_f.pdf#page=2
+    - title: 2024 Property Tax Refund (Credit) Claim Form 140PTC, page 2, Schedule 2
+      href: https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2024_140PTC_f.pdf#page=2
+    - title: 2023 Property Tax Refund (Credit) Claim Form 140PTC, page 2, Schedule 2
+      href: https://azdor.gov/sites/default/files/2023-12/FORMS_INDIVIDUAL_2023_140PTC_f.pdf#page=2
+    - title: 2022 Property Tax Refund (Credit) Claim Form 140PTC, page 2, Schedule 2
       href: https://azdor.gov/sites/default/files/2023-03/FORMS_INDIVIDUAL_2022_140PTC.pdf#page=2
-    - title: 2021 Property Tax Refund (Credit) Claim Form 140PTC
+    - title: 2021 Property Tax Refund (Credit) Claim Form 140PTC, page 2, Schedule 2
       href: https://azdor.gov/sites/default/files/2023-03/FORMS_INDIVIDUAL_2021_140PTC.pdf#page=2
-    - title: 43-1072. Earned credit for property taxes; residents sixty-five years of age or older - (B) (2)
+    - title: 43-1072. Earned credit for property taxes; residents sixty-five years of age or older - (A)(3)(b), (B)(2)
       href: https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/43/01072.htm
   threshold_unit: currency-USD
   rate_unit: currency-USD
   type: single_amount
   period: year
-  label: Arizona property tax credit cohabitating amount 
+  label: Arizona property tax credit cohabitating amount
+# Each threshold is the lower bound of a band in ARS 43-1072(B)(2), and a
+# band runs up to, but not including, the next band's lower bound. The
+# statute lists whole-dollar bands ($0-2,500, 2,501-2,650, ...) and sets
+# the income limit in (A)(3)(b) as "less than" $5,501, one dollar above the
+# last band's upper bound, so the last band covers every income below $5,501.
+# Reading every band the same way puts cents between two whole-dollar bands
+# in the lower one: $2,500.50 gets the $0-2,500 amount, as if the cents
+# were dropped. Form 140PTC line 10 takes whole dollars, and the 2025 Form
+# 140 instructions (page 4) round to the nearest dollar, which would instead
+# move 50 cents or more into the next band.
 brackets:
   - threshold:
       2021-01-01: 0
     amount:
       2021-01-01: 502
   - threshold:
-      2021-01-01: 2_500
+      2021-01-01: 2_501
     amount:
       2021-01-01: 479
   - threshold:
-      2021-01-01: 2_650
+      2021-01-01: 2_651
     amount:
       2021-01-01: 457
   - threshold:
-      2021-01-01: 2_800
+      2021-01-01: 2_801
     amount:
       2021-01-01: 435
   - threshold:
-      2021-01-01: 2_950
+      2021-01-01: 2_951
     amount:
       2021-01-01: 412
   - threshold:
-      2021-01-01: 3_100
+      2021-01-01: 3_101
     amount:
       2021-01-01: 390
   - threshold:
-      2021-01-01: 3_250
+      2021-01-01: 3_251
     amount:
       2021-01-01: 368
   - threshold:
-      2021-01-01: 3_400
+      2021-01-01: 3_401
     amount:
       2021-01-01: 345
   - threshold:
-      2021-01-01: 3_550
+      2021-01-01: 3_551
     amount:
       2021-01-01: 323
   - threshold:
-      2021-01-01: 3_700
+      2021-01-01: 3_701
     amount:
       2021-01-01: 301
   - threshold:
-      2021-01-01: 3_850
+      2021-01-01: 3_851
     amount:
       2021-01-01: 279
   - threshold:
-      2021-01-01: 4_000
+      2021-01-01: 4_001
     amount:
       2021-01-01: 256
   - threshold:
-      2021-01-01: 4_150
+      2021-01-01: 4_151
     amount:
       2021-01-01: 234
   - threshold:
-      2021-01-01: 4_300
+      2021-01-01: 4_301
     amount:
       2021-01-01: 212
   - threshold:
-      2021-01-01: 4_450
+      2021-01-01: 4_451
     amount:
       2021-01-01: 189
   - threshold:
-      2021-01-01: 4_600
+      2021-01-01: 4_601
     amount:
       2021-01-01: 167
   - threshold:
-      2021-01-01: 4_750
+      2021-01-01: 4_751
     amount:
       2021-01-01: 145
   - threshold:
-      2021-01-01: 4_900
+      2021-01-01: 4_901
     amount:
       2021-01-01: 123
   - threshold:
-      2021-01-01: 5_050
+      2021-01-01: 5_051
     amount:
       2021-01-01: 100
   - threshold:
-      2021-01-01: 5_200
+      2021-01-01: 5_201
     amount:
       2021-01-01: 78
   - threshold:
-      2021-01-01: 5_350
+      2021-01-01: 5_351
     amount:
       2021-01-01: 56
   - threshold:
-      2021-01-01: 5_500
+      2021-01-01: 5_501
     amount:
       2021-01-01: 0

policyengine_us/parameters/gov/states/az/tax/income/credits/property_tax/amount/living_alone.yaml

@@ -1,21 +1,33 @@
 description: Arizona provides this property tax credit amount for filers living alone, based on income.
 metadata:
   reference:
-    - title: 2024 Property Tax Refund (Credit) Claim Form 140PTC
-      href: https://azdor.gov/forms/tax-credits-forms/property-tax-refund-credit-claim-form-fillable#page=2
-    - title: 2023 Property Tax Refund (Credit) Claim Form 140PTC
-      href: https://azdor.gov/forms/tax-credits-forms/property-tax-refund-credit-claim-form-fillable#page=2
-    - title: 2022 Property Tax Refund (Credit) Claim Form 140PTC
+    - title: 2025 Property Tax Refund (Credit) Claim Form 140PTC, page 2, Schedule 1
+      href: https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140PTC_f.pdf#page=2
+    - title: 2024 Property Tax Refund (Credit) Claim Form 140PTC, page 2, Schedule 1
+      href: https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2024_140PTC_f.pdf#page=2
+    - title: 2023 Property Tax Refund (Credit) Claim Form 140PTC, page 2, Schedule 1
+      href: https://azdor.gov/sites/default/files/2023-12/FORMS_INDIVIDUAL_2023_140PTC_f.pdf#page=2
+    - title: 2022 Property Tax Refund (Credit) Claim Form 140PTC, page 2, Schedule 1
+      href: https://azdor.gov/sites/default/files/2023-03/FORMS_INDIVIDUAL_2022_140PTC.pdf#page=2
+    - title: 2021 Property Tax Refund (Credit) Claim Form 140PTC, page 2, Schedule 1
       href: https://azdor.gov/sites/default/files/2023-03/FORMS_INDIVIDUAL_2021_140PTC.pdf#page=2
-    - title: 2021 Property Tax Refund (Credit) Claim Form 140PTC
-      href: https://azdor.gov/sites/default/files/2023-03/FORMS_INDIVIDUAL_2021_140PTC.pdf#page=2
-    - title: 43-1072. Earned credit for property taxes; residents sixty-five years of age or older - (B) (1)
+    - title: 43-1072. Earned credit for property taxes; residents sixty-five years of age or older - (A)(3)(a), (B)(1)
       href: https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/43/01072.htm
   threshold_unit: currency-USD
   rate_unit: currency-USD
   type: single_amount
   period: year
-  label: Arizona property tax credit living alone amount 
+  label: Arizona property tax credit living alone amount
+# Each threshold is the lower bound of a band in ARS 43-1072(B)(1), and a
+# band runs up to, but not including, the next band's lower bound. The
+# statute lists whole-dollar bands ($0-1,750, 1,751-1,850, ...) and sets
+# the income limit in (A)(3)(a) as "less than" $3,751, one dollar above the
+# last band's upper bound, so the last band covers every income below $3,751.
+# Reading every band the same way puts cents between two whole-dollar bands
+# in the lower one: $1,750.50 gets the $0-1,750 amount, as if the cents
+# were dropped. Form 140PTC line 10 takes whole dollars, and the 2025 Form
+# 140 instructions (page 4) round to the nearest dollar, which would instead
+# move 50 cents or more into the next band.
 brackets:
   - threshold:
       2021-01-01: 0

policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_property_tax_credit.yaml

@@ -89,7 +89,10 @@
     real_estate_taxes: 100
     rent: 1_500
   output:
-    az_property_tax_credit: 0
+    # ARS 43-1072(B)(2): $5,500 is in the $5,351-5,500 band ($56), below the
+    # (A)(3)(b) limit of "less than" $5,501. Taxes paid: 100 + 0.15 * 1,500 =
+    # 325, so the credit is the $56 table amount.
+    az_property_tax_credit: 56
 
 - name: tax unit head does not meet the criteria
   period: 2023