HB 2440 Summary

• Repeals sales tax exemptions on warranty/service contracts and stock/bond sales; removes coal from nonmetalliferous mineral products definition to create separate coal excise tax treatment.

• Renumbers and consolidates existing tax exemptions in section 42-5061 (retail classification) from 60 paragraphs to 59 paragraphs due to removal of warranty/service contract exemption.

• Increases corporate income tax rate from 4.9 percent to 5.5 percent for taxable years beginning after December 31, 2022.

• Makes technical corrections to motor vehicle dealer nonresident registration permits and related tax documentation requirements across multiple statutes.

• Requires two-thirds legislative vote for enactment per Arizona Constitution Article IX, section 22.