ARIZONA STATE SENATE

RESEARCH STAFF

DENISSE GEE

LEGISLATIVE RESEARCH ANALYST

FINANCE COMMITTEE

Telephone: (602) 542-3171

Facsimile: (602) 542-7833

TO: MEMBERS OF THE SENATE

FINANCE COMMITTEE

DATE: March 1, 2001

SUBJECT: Strike Everything Amendment to S.B. 1227 (county sales tax for roads) relating to sales tax holiday

Purpose

Creates, on the first Monday in the month of September, a one day sales tax holiday for school-related items up to a total purchase price of $100.

Background

Currently, there are seven states (Florida, Texas, Iowa, Maryland, Connecticut, Pennsylvania and South Caroline) that have some form of a sales tax exemption for school-related items. Arizona TPT statutes allow for a variety of retail classification exemptions. Currently, the only educational related items exempted from the retail classification are textbooks required by a state or community college. The strike-everything amendment to S.B. 1227 exempts, from the TPT and use taxation, school supplies, school clothes and other school-related items.

A fiscal note has been requested from Joint Legislative Budget Committee staff.

Provisions

1. Exempts, from the retail classification of TPT and use taxation, school supplies, school clothes and other school-related items, when the total sales price is less than $100 and the purchases are made on the first Monday in September.

2. Contains an effective date of August 1, 2001.

DG/jas