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HB 2639 Arizona House · 57th Legislature - First Regular Session

TPT; exemption; qualifying equipment; extension

HB 2639 amends Arizona's retail tax code (ARS § 42-5061) to add a new tax exemption for tangible personal property sold to qualifying hospitals and health care organizations. Specifically, it exempts sales of medical equipment used solely to provide health, medical, educational, or charitable services. This change directly affects healthcare providers by removing sales tax on qualifying equipment purchases, aligning with existing exemptions for similar medical items like durable medical equipment. The bill extends the scope of tax exemptions for healthcare facilities under the retail classification system.
Issues: ✓ Budget & TaxesSupports Budget & TaxesExempts healthcare providers from sales tax on medical equipment, reducing tax burden and aligning with existing tax relief for medical services.90% confidence ✓ HealthcareSupports HealthcareExempts sales tax on medical equipment for healthcare providers, reducing costs for essential services and aligning with existing healthcare exemptions.95% confidence
Bill status signed all 5 stages cleared
Introduction
Jan 2025
Committee Review
Mar 2025
House Passage
Feb 2025
Senate Passage
Apr 2025
Signed into Law
May 2025
Introduced Jan 23, 2025 Signed May 6, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

House Engrossed Version → Chaptered Version · 5 edits
MODERATE
This bill amends Arizona's transaction privilege tax (TPT) statute to modernize exemptions for digital goods, update definitions for cash equivalents to include electronic payment methods, and extend certain equipment purchase exemptions for environmental technology and forest products. The changes reflect evolving economic activities and ensure tax exemptions keep pace with technology and environmental initiatives.
Scope change
The bill expands tax exemptions to include digital payment mechanisms and extends the duration of certain equipment purchase exemptions for environmental technology and forest products.
DEFINITION

Expanded the definition of 'cash equivalents' to include electronic codes, personal identification numbers, digital payment mechanisms, and prepaid intangible rights to acquire goods or services in the future.

ELIGIBILITY

Added new exemptions for sales of tangible personal property to nonprofit organizations operating cultural or civic festivals, and for sales of tangible personal property by nonprofit organizations associated with major league baseball teams or professional golfing associations.

Updated the durable medical equipment exemption to require prescription by professionals licensed under specific chapters of Title 32, removing some previously included chapters.

TIMELINE

Extended the qualifying equipment purchase exemption for forest products from December 31, 2026 to December 31, 2028.

ENFORCEMENT

Added provisions requiring purchasers to establish compliance with certain telecommunications equipment exemptions, making purchasers liable for unpaid taxes if they cannot prove eligibility.

Floor votes · Senate Apr 29, 2025 · House Feb 17, 2025

How they voted

25–3
Passed · 2 other
Total votes 30
Apr 29, 2025
D Democratic13
8 Yea 3 Nay 2
61% Yea
R Republican17
17 Yea
100% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
14
Key actions
6
Committee
2
May 6, 2025
Signed into law
Signed by Governor
executive
Apr 29, 2025
Upper · Passed
PASSED
upper
Apr 23, 2025
Upper · Passed
DP
upper
Mar 10, 2025
Upper · Passed
DP
upper
Feb 17, 2025
Lower · Passed
PASSED
lower
Feb 3, 2025
Lower · Passed
DP
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Gail Griffin
Gail Griffin
RRepublican
AZ
19