HB 2336 Summary

• Amends section 42-5061, Arizona Revised Statutes, to clarify that sales of cash equivalents are not subject to retail classification transaction privilege tax.

• Defines "cash equivalents" as items sold through which a money-denominated value is purchased in advance and may be redeemed for tangible personal property, intangibles, or services, including gift cards, gift certificates, vouchers, stored value cards, and digital payment mechanisms.

• Excludes from the cash equivalents definition items without money-denominated value and prepaid telecommunications services.

• Applies the amendment retroactively to taxable periods beginning after December 31, 1998, with refund claims limited to $10,000 aggregate and requiring submission by December 31, 2013.

• Establishes that the amendment clarifies existing law rather than creating a new exemption, stating cash equivalents sales should never have been taxed under the retail classification.