AZ HB2543

Changes luxury privilege tax payment frequency from monthly to annual, requiring payment on or before the 20th day of January for the preceding year.

Establishes tax credits against luxury privilege tax for craft distillers ($2 per gallon for first 20,000 gallons produced), farm wineries ($0.50 per gallon for first 20,000 gallons produced), and microbreweries ($0.10 per gallon for first 500,000 gallons produced).

Credits apply only to taxpayers who paid the corresponding tax under section 42-3052 and must be claimed on department-prescribed forms with each tax period.

Prevents credits from being removed from allocations prescribed in section 42-3106 and requires recapture of disallowed credit amounts.

Effective date is December 31, 2022.