AZ HB2820

Increases transaction privilege tax rates from 5% to 6% for most business classifications, from 5.5% to 6% for transient lodging, and from 3.125% to 6% for mining; maintains 6% rate for commercial lease classification.

Creates new services classification taxed at 6% rate, covering professional services (legal, accounting, engineering), health care services, administrative support, personal care, education, financial services, and repair/maintenance services.

Exempts certain business-to-business services from taxation including legal, architectural, engineering, accounting, consulting, office administrative, employment placement, data processing, and machinery repair services.

Repeals existing food transaction privilege tax provisions (Article 3) and luxury tax provisions (Chapters 10-11) in Title 43.

Revises urban revenue sharing fund formula, replacing calculation based on 15% of prior-year net income tax proceeds with fixed appropriation of $424,400,000 for fiscal year 2017-2018, with future annual adjustments.