AZ SB1221

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

Adds sunset provisions to existing tax exemptions and deductions across multiple business classifications (retail, transporting, utilities, telecommunications, publication, job printing, pipeline, commercial lease, transient lodging, personal property rental, mining, amusement, and restaurant), making them expire on December 31, 2020.

Eliminates specific deductions from the retail classification tax base, including exemptions for machinery and equipment used in manufacturing, research and development, food sales, and various other categories effective December 31, 2020.

Removes tax deductions and exemptions across other business classifications including utilities, telecommunications, publication, and prime contracting by the same December 31, 2020 sunset date.

Requires a two-thirds vote of both houses of the legislature for passage, consistent with Arizona's constitutional requirement for tax law changes.