43-404. Extension of withholding to military retirement pensions and to other annuities; definition

A. For the purposes of this title, any payment of an amount as retired or retainer pay for service in the military or naval forces of the United States, or payments received under the United States civil service retirement system from the United States government service retirement and disability fund, if at the time the payment is made a request by the individual that such pay be subject to withholding under this section is in effect, shall be treated as if it were a payment of wages by an employer to an employee for a payroll period. In addition, a payment of any other annuity to an individual, if at the time the payment is made a request by the individual that such annuity be subject to withholding under this section is in effect, shall be treated as if it were a payment of wages by an employer to an employee for a payroll period.

B. A request that retired or retainer pay or an annuity be subject to withholding under this section shall be made by the payee in writing to the person making the annuity payments and shall be accompanied by a form, prescribed by the department, executed in accordance with section 43-401, subsection E. Such a request may be terminated by furnishing to the person making the payment a written statement of termination.

C. For the purposes of this section, " annuity" means any amount paid to an individual as a pension or annuity, but only to the extent that the amount is includible in the Arizona gross income of such individual.