AZ HB2645

Establishes a requirement that any new transaction privilege or use tax deduction or exemption enacted by the legislature must include a specific repeal date set for December 31 of the seventh full calendar year following enactment.

Adds sunset provisions (effective December 31, 2019) to numerous existing tax deductions and exemptions across multiple business classifications including retail, transporting, utilities, telecommunications, publication, job printing, pipeline, commercial lease, transient lodging, personal property rental, mining, amusement, and restaurant classifications.

Phases out numerous specific tax exemptions for items such as food sales, durable medical equipment, machinery and equipment used in manufacturing and research, environmental remediation activities, and various other business-related deductions that expire after December 31, 2019.

Requires a two-thirds affirmative vote of both houses of the legislature for passage and takes effect immediately upon gubernatorial signature or upon a three-fourths vote override of a gubernatorial veto.