AZ HB2693

Adds two new transaction privilege tax (TPT) classifications effective January 1, 2018: personal services (including salons, laundry, fitness facilities, tutoring) and financial services (including banks, credit unions, investment firms) taxed at 5 percent.

Reduces individual income tax rates for taxable years beginning after December 31, 2017, with new progressive brackets ranging from 1.3 percent to 4.5 percent (down from previous 2.59 percent to 4.54 percent).

Adjusts income tax bracket thresholds annually based on the metropolitan Phoenix consumer price index, with amounts rounded to the nearest whole dollar.

Increases the long-term capital gains subtraction from 25 percent to 37.5 percent of net long-term capital gains for taxable years beginning after December 31, 2017.

Effective date: December 31, 2017.