HB 2924 amends Arizona's sales tax code (Section 42-5061) to update existing exemptions from the state's retail sales tax. It specifically clarifies exemptions for medical items like insulin, prosthetics, and durable medical equipment prescribed by licensed health professionals, as well as food, nonprofit sales, and certain educational materials. The bill does not create a new "fire apparatus" exemption as implied in its title - this appears to be a mislabeling, as the actual text revises other exemption categories. The changes directly affect businesses selling these exempt items, such as pharmacies, hospitals, schools, and nonprofits, by removing tax liability on qualifying transactions. The policy update focuses on refining existing tax law, not introducing new provisions.
SB 1430, the "Tax Corrections Act of 2026," amends Arizona's retail tax code to clarify and correct exemptions from the sales tax. It adds 25 specific exemptions, including sales of medical equipment (like prosthetics, hearing aids, and durable medical devices), prescription drugs, food, textbooks, and nonprofit sales. This directly affects businesses selling these items by ensuring they are exempt from the tax, resolving prior ambiguities in the code. The bill is a technical correction to the tax code, not a change in tax rates or policy.
HB 2290 clarifies where Arizona collects sales tax on tangible personal property sales, primarily affecting online retailers and car-sharing companies. It specifies that sales tax applies based on where the seller *receives the order* (not where the customer lives or where the order is processed), requiring out-of-state sellers to collect tax if orders are received at a business location in Arizona. For car-sharing services, tax is determined by the vehicle's registration location or the owner's Arizona address during use. This changes how businesses calculate tax liability for physical goods sold to Arizona customers, particularly impacting e-commerce and shared vehicle transactions.
HCR 2018 is a proposed voter measure (not yet law) that would require Arizona cities and towns to apply a uniform local tax rate to all food sales, eliminating differential tax rates for specific food items. It exempts food manufacturing, wholesale, and distribution from local transaction taxes, and specifically removes taxes on food purchased with SNAP benefits (food stamps) or sold at low cost to eligible elderly, homeless, or disabled individuals through approved programs. The bill affects local governments that impose food taxes, food businesses, and low-income residents using SNAP benefits. If approved by voters, it would apply retroactively to taxable periods starting after the effective date.
HB 2400 creates a temporary motor fuel tax holiday in Arizona, exempting consumers from the standard 18¢ per gallon tax on motor vehicle fuel purchased, sold, possessed, used, or consumed during May 1-September 30 each year in designated areas (Area A per §49-541 and Area C per §3-3401). Vendors must not add the tax to fuel prices during this period and must refund any incorrectly collected amounts. The exemption applies only to retail fuel sales in those specific geographic areas during the summer months, while other tax collection rules remain unchanged. This policy directly affects drivers and fuel retailers in those zones during the summer season.
HB 2273 allocates unspent county transportation excise tax revenues for specific road improvement projects across Pinal County and surrounding communities in Arizona. The bill directs $45.98 million toward 12 named projects, including road widening in Florence, paving in Pinal County, traffic interchanges in Maricopa, and general transportation upgrades for cities like Queen Creek and tribal communities (Gila River, Ak-Chin, and Coolidge). Funds are distributed proportionally if total revenues exceed or fall short of the $45.98 million target. This policy change directly affects local governments and tribal entities by providing dedicated funding for infrastructure projects without creating new taxes or fees.
HB 2768 prohibits payment card networks (like Visa or Mastercard) from charging interchange fees based on transaction amounts that include Arizona's sales or use taxes. It specifically bans fees calculated as a percentage of the total transaction price, including tax, and prevents networks from circumventing this rule through other fee structures. The bill requires networks to disclose fee changes to Arizona's Attorney General and the public 90 days before implementation, and to annually list which issuers (banks) used those fees for transactions in Arizona. This directly affects merchants who accept card payments and the banks/ networks that process those transactions.
HB 2639 creates a new "luxury item classification" for Arizona's business tax system, imposing a 6.5% tax rate on businesses selling qualifying luxury items. This directly affects retailers and sellers of high-end goods classified as "luxury items" under the law. The bill specifies that 50% of tax revenues collected from this new classification will be distributed to designated state funds as outlined in Section 42-5029. The law does not define "luxury items" but establishes a distinct tax rate and revenue distribution mechanism separate from existing business classifications like retail or restaurants.
SB 1033 amends Arizona's tax code to add new exemptions from local transaction privilege taxes (TPT). It exempts specific services including internet access providers (defined as enabling users to access the internet), nonprofit events tied to major sports teams (with restrictions), machinery maintenance contracts, and leasing between affiliated businesses. The bill directly affects businesses providing these services by removing local TPT liability on qualifying transactions. It does not address residential property exemptions, as suggested in the title, and focuses solely on expanding existing tax exemption categories for commercial activities. The changes are purely procedural within Arizona's tax framework, with no new funding or regulatory impacts.
HB 2106 clarifies how Arizona counties can levy a transportation excise tax approved by voters. It sets a maximum tax rate (up to 20% of existing business tax rates) and specifies where collected revenue must go: counties with over 400,000 residents deposit funds into a regional transportation fund, while smaller counties can choose between that fund or a public transportation authority fund. The tax applies to business transactions, electricity, and natural gas use, and must fund transportation projects in the county. This bill modifies existing tax collection rules but does not create new taxes - only defines how existing voter-approved county taxes operate.
