ARIZONA STATE SENATE
Phoenix, Arizona
sales tax holiday; school
items
Purpose
Creates a sales tax holiday
for items that cost less than $200 from state and municipal transaction
privilege taxation (TPT).
Background
Arizona TPT statutes allow
for a variety of retail classification exemptions. Currently, there exists no TPT exemption for items purchased
specifically for educational purposes.
S.B. 1231 provides a broad exemption for items with sales prices
under $200 during the periods between August 1 and August 7. School items could qualify under this
exemption.
The fiscal impact has yet to
be determined.
Provisions
1. Exempts, from both state and municipal retail classification of TPT and use taxation, tangible personal property items that cost less than $200 and are purchased between August 1 and August 7.
2. Specifies that municipalities can annually opt out of the tax holiday and levy taxation on such items if the municipal government adopts an ordinance or the electorate adopts an initiative or referendum during the first 7 days in August.
3. Contains a legislative intent clause.
4. Contains an effective date of August 1, 2001.
Prepared by Senate Staff
January 25, 2001