AZ SB1433

Imposes a tax of 1.5 cents per fluid ounce on sugar-sweetened beverages supplied to dealers, effective December 31, 2017, including both ready-to-drink beverages and syrups or concentrates containing caloric or artificial sweeteners.

Requires distributors to register with the Department of Revenue and register dealers to pay the tax; dealers must notify distributors of their status and can only purchase from registered distributors unless granted a waiver by the department.

Excludes baby formula, medical food, products with more than 50% milk or fresh fruit/vegetables by volume, and unsweetened drinks where consumers add sugar at point of sale.

Directs tax revenue collection through quarterly returns filed by registered distributors, with 50% of annual revenues allocated to district additional assistance and 50% to the Department of Health Services for nutrition and physical activity programs.

Requires a two-thirds affirmative vote in both houses of the legislature for enactment under Arizona Constitution Article IX, Section 22.