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AZ HB2639

Bill

Official Source

Status

Introduced

1/20/2026

Primary Sponsor

Mariana Sandoval

Click for details

Origin

House of Representatives

Fifty-seventh Legislature - Second Regular Session (2026)

AI Summary

  • Creates a new "luxury item classification" for transaction privilege tax (TPT) on certain high-value retail goods, taxed at 6.5% instead of the standard 5% rate
  • Defines luxury items as tangible personal property with a sales price of $150,000 or more, including motor vehicles, watercraft, aircraft, jewelry, gemstones, fine art, antiques, watches, and wine or spirits
  • Excludes revenues from the luxury item classification from the distribution base shared with counties and cities; all luxury tax revenues are credited to the state general fund
  • Subjects luxury items to the additional 0.6% education tax rate increment through June 30, 2041, bringing the total state tax rate on luxury items to 7.1%
  • Takes effect from and after December 31, 2025

Legislative Description

TPT; luxury item classification

Last Action

House read second time

1/21/2026

Committee Referrals

Rules1/20/2026
Ways and Means1/20/2026

Full Bill Text

No bill text available