AZ SB1251

Repeals the tax exemption for lottery tickets and lottery shares currently provided under Arizona's transaction privilege tax (retail sales tax) and use tax, effective immediately.

Removes paragraph 20 from section 42-5061 (retail classification exemptions) and paragraph 27 from section 42-5159 (use tax exemptions) that previously exempted lottery tickets purchased pursuant to title 5, chapter 5, article 1.

Renumbers all subsequent exemption paragraphs in both the retail and use tax sections to account for the removal of the lottery ticket exemption.

Makes technical conforming amendments to sections 28-2154.01, 42-5009, 42-5071, 42-5072, 42-5075, and 42-6104 through 42-6106 to update references to renumbered tax exemption paragraphs.

Requires a two-thirds affirmative vote of both houses of the legislature for enactment, per Arizona Constitution article IX, section 22.