House of Representatives

SB 1122

sales tax exemption; pallets; containers.

Sponsor: Senator Hamilton

 

W/D

Committee on Commerce & Economic Development

DP

Committee on Natural Resources & Agriculture

x

Caucus and COW

 

 

As Passed the House

 

SB 1122 exempts reusable or returnable pallets and containers used for agricultural, dairy or livestock products from the transaction privilege and use tax.

 

History

Arizona does not have a traditional "sales tax" where the tax is imposed on the buyer for purchases of goods and services. Rather, a transaction privilege tax is levied against the seller or vendor who conducts business in the state.  The transaction privilege tax has several classifications, including retail and personal property rentals.

 

Arizona’s use tax captures revenue from tangible personal property purchased in other states and brought into Arizona for storage, use or consumption.

 

A fiscal note has been prepared on this bill.

 

Provisions

·             Provides an exemption from the use tax and retail and personal property rental classifications of the transaction privilege tax for reusable or returnable pallets and containers used to transport, store or carry products of:

    1. agricultural growers, shippers or packers;
    2. dairy producers or processors;
    3. livestock producers or processors .

 

·             Contains a delayed effective date for taxable periods beginning October 1, 2001.

 

SB 1122 passed the Natural Resources & Agriculture Committee unamended.

 

 

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45th Legislature                                                                                                                                

First Regular Session                                   2                                                              April 6, 2001

 

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