AZ SB1372

Creates a new "services classification" subject to 5% transaction privilege tax, covering personal care services (salons, barbers), education (trade schools, dance studios), automotive services (repair, painting, detailing), and household maintenance (cleaning, pest control, plumbing, roofing).

Repeals the warranty/service contracts tax provision (section 42-5156) and renumbers numerous tax code paragraphs to accommodate the new services classification throughout Arizona's transaction privilege tax system.

Modifies motor vehicle sales deductions for nonresidents by referencing a special 90-day nonresident registration permit and adjusts tax treatment based on whether the purchaser's state of residence allows corresponding use tax exemptions.

Renumbers paragraphs in sections 42-5061, 42-5071, 42-5072, and 42-5075 to reflect removal of the warranty contracts deduction and adds cross-references to the new services classification throughout the tax code.

Requires enactment by two-thirds affirmative vote of both legislative houses per Arizona Constitution article IX, section 22, making it effective immediately upon the governor's signature or upon subsequent three-fourths override vote if vetoed.