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       Senate Engrossed
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  State of Arizona
  Senate
  Forty-fifth
  Legislature
  First Regular Session
  2001
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    SENATE BILL 1258
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AN ACT

PROVIDING FOR TAX RATE INCREMENT IMPLEMENTATION CLARIFICATION.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Current contracts; application of tax rate increment

Through December 31, 2001, the additional transaction privilege tax rate increment imposed by section 42-5010, subsection G, Arizona Revised Statutes, does not apply to the gross proceeds of sales or gross income from the business of a taxpayer with respect to contracts entered into before June 1, 2001, unless the taxpayer has entered a contract that contains a provision that entitles the taxpayer to recover from the purchaser the amount of additional tax levied. The additional tax rate increment does apply with respect to those contracts from and after December 31, 2001.

Sec. 2. Department of revenue; implementation

For purposes of administering section 1 of this act, the department of revenue may implement the tax rate differences mandated by this act as a credit against the liability established under the higher tax rate until such time as the department of revenue can process the multiple rates mandated by this act. The credit shall be the difference between the tax rate mandated by the provisions of this act and the higher tax rate established by law and may be paid separately as a refund by the department of revenue.

Sec. 3. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.