AZ HB2758

Reduces transaction privilege tax rate from 5% to 3.5% on most business classifications including retail, transporting, utilities, telecommunications, pipeline, private car line, publication, job printing, prime contracting, owner builder sales, amusement, restaurant, personal property rental, and a new services classification.

Reduces transient lodging tax rate from 5.5% to 3.5% and mining tax rate from 3.125% to 3.5%, while increasing commercial lease tax rate from 0% to 3.5%.

Creates new services classification taxed at 3.5% rate covering legal services, medical services, accounting, engineering, computer services, management consulting, beauty services, automotive repair, and other professional services, with dental services allowing a $10,000 annual deduction per client.

Makes various conforming changes to retail classification exemptions and deductions, removes or renumbers specific exemptions related to charitable organizations and nonprofit entities.

Effective December 31, 2010.