AZ HB2257

Renumbers and reorganizes tax exemptions in Arizona's retail classification (section 42-5061) by consolidating 60 paragraphs into 58 paragraphs, with specific exemptions shifted to different paragraph numbers throughout the statute.

Increases the corporate income tax rate from 4.9 percent to 5.5 percent for taxable years beginning January 1, 2023 and after (section 43-1111).

Makes technical corrections to cross-references in multiple tax code sections (42-5008.01, 42-5009, 42-5071, 42-5072, 42-5075, 42-6017) to align with the renumbered exemptions in section 42-5061.

Updates references to various tax exemptions related to pari-mutuel wagering, motor vehicle sales, manufacturing equipment, propagative materials, and livestock throughout the Arizona tax code.

Requires a two-thirds affirmative vote of each house of the legislature for passage and becomes effective immediately upon the governor's signature.