AZ HB2382

Establishes an annual "transaction privilege and use tax holiday" running from 8:00 A.M. on the third Saturday in July through 8:00 P.M. on the following Sunday, during which state sales tax and use tax do not apply to qualifying items.

Exempts the following items from taxation during the holiday: clothing and footwear under $100 (excluding sports/recreational equipment and accessories), computers under $1,000, and school supplies under $50 per item.

Prohibits retailers from collecting state transaction privilege tax or use tax on qualifying items during the holiday period; any amounts erroneously collected must be remitted to the department.

Excludes the tax holiday from applying to purchases at theme parks, entertainment venues, sports arenas, stadiums, restaurants, hotels, and airports.

Requires retailers to maintain accurate, verifiable records distinguishing taxable and tax-exempt sales; failure to maintain adequate records results in tax applying to all gross proceeds without regard to deductions or exemptions.