SB 1430: tax corrections act of 2026 - Arizona

Senate Engrossed Version (02/19/2026) → Chaptered Version · 3 edits

MINOR

The bill was finalized into law (Chapter 30) with minor formatting adjustments. The substantive policy content regarding tax exemptions and definitions remains unchanged from the previous Senate version, though the final text includes a specific provision for separately accounting revenues from sales at major league baseball facilities.

Scope change

The bill's scope and applicability remain unchanged; it continues to amend Arizona Revised Statutes regarding the Department of Revenue and retail tax classifications.

TECHNICAL

The document was transitioned from a draft 'Senate Engrossed Version' to the official 'Chaptered Version,' indicating the bill has been enacted into law.

A new subsection (U) was added to Section 42-5061 requiring the Department of Revenue to separately account for retail tax revenues collected from businesses operating on the premises of major league baseball facilities or adjacent county-owned buildings.

Minor formatting changes were made to the header and title page, including the removal of the 'State of Arizona' and 'Senate' lines from the top of the page and the reorganization of the title block.

House Engrossed Version (03/25/2026) → Senate Engrossed Version (02/19/2026) · 3 edits · Apr 7, 2026

MINOR

The Senate version of the bill expands the scope of tax exemptions by adding a new section to the Department of Revenue statutes. It also removes a specific exclusion for 'expendable materials' from the list of items that do not qualify for tax exemptions, potentially broadening the range of property eligible for tax relief.

Scope change

The bill's scope was expanded by adding a reference to a new statute section (44-321) and removing a limitation on which materials are excluded from tax exemptions.

SCOPE

Added a reference to section 44-321 to the list of statutes being amended, expanding the bill's legislative scope.

ELIGIBILITY

Removed the exclusion of 'expendable materials' from the list of items that are not eligible for tax exemptions, which may allow certain consumable items to qualify for tax relief.

TECHNICAL

Minor formatting adjustments were made to the text, such as removing the word 'major' from a definition and adding a period to a sentence.

Introduced Version → House Engrossed Version (03/25/2026) · 6 edits · Apr 7, 2026

MODERATE

This bill updates Arizona's tax code to modernize exemptions for the retail sales tax. The most significant change is the expansion of the definition of 'cash equivalents' to include digital payment methods like electronic codes and PINs, ensuring these modern transactions are treated similarly to gift cards. Additionally, the bill clarifies and expands exemptions for various industries, including specific rules for aircraft, environmental technology, and renewable energy credits, while also adding new exemptions for orthodontic devices and specific types of agricultural machinery.

Scope change

The scope of the bill remains focused on the Department of Revenue and the retail classification of the transaction privilege tax, but the applicability of exemptions has been broadened to cover new digital payment technologies and specific modern business sectors.

DEFINITION

Expanded the definition of 'cash equivalents' to explicitly include electronic mechanisms, digital codes, and prepaid intangible rights, ensuring digital gift cards and similar items are taxed consistently with physical gift cards.

ELIGIBILITY

Added a new exemption for orthodontic devices dispensed by licensed dental professionals as part of their practice.

Refined exemptions for aircraft and aviation equipment to clarify eligibility for fractional ownership programs and specific operational specifications.

Added new exemptions for machinery and equipment used to prevent or reduce air, water, and land pollution in commercial production.

Added a specific exemption for renewable energy credits and units tracking energy from renewable resources.

Updated exemptions for environmental technology facilities to clarify the ten-year construction period and specific qualifying projects.

tax corrections act of 2026

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