AZ SB1220

Establishes uniform standards for municipal transaction privilege and excise taxes by limiting cities and towns to levy taxes only on businesses classified under state law (chapter 5, article 2) and applies the same tax base definitions as state law.

Creates new municipal tax classifications for residential leases, commercial licenses, food sales, and local advertising, with specific definitions and tax base calculations.

Repeals the model city tax code articles (sections 42-6004 through 42-6007 and 42-6207) and replaces them with new streamlined municipal excise tax provisions under section 42-6051 through 42-6055.

Requires the department of revenue to collect and administer municipal transaction privilege and excise taxes through coordinated agreements with cities and towns, and mandates use of the same procedures and audit timeframes as state law.

Modifies nonresident vehicle registration procedures to reference "applicable municipal tax" instead of specific model city tax code articles and clarifies that motor vehicle dealers complying with registration requirements are entitled to exemptions from municipal taxes.