SB 1357 Summary

• Repeals Arizona's existing transaction privilege tax (Title 42, Chapter 5) and income tax (Title 43), replacing them with a comprehensive tax on retail goods and services effective January 1, 2014.

• Imposes a new tax on use or consumption of taxable property and services in Arizona at a rate to be specified, collected at the source by sellers, with exemptions for business purchases, exports, and investment property.

• Establishes a monthly family tax rebate equal to the tax rate multiplied by the monthly poverty level for registered qualified families, with families defined by shared residence and requiring annual registration with the Department of Revenue.

• Creates credits for businesses including administrative credits (greater of $200 or 1/4 of 1% of tax remitted), business use conversion credits, bad debt losses, and insurance proceeds, with refunds of overpayments within 60 days.

• Includes special provisions for gaming activities, government enterprise purchases, mixed-use property, nonprofit organizations, financial intermediation services, and a transitional inventory credit for businesses holding inventory as of December 31, 2013.