AZ SB1348

Amends Arizona Revised Statutes section 42-5061 regarding the retail transaction privilege tax classification to add a new subsection Q addressing sales of tangible personal property bundled with service contracts.

Establishes that when tangible personal property is sold or transferred to a customer as an inducement to enter into or continue a service contract, and the property cannot be purchased separately from the service contract, the tax base includes gross proceeds from both the tangible property sale and the service contract sale.

Renumbers existing subsections Q through W as R through X to accommodate the new provision regarding service contract merchandise taxation.