I am absolutely elated that my tax reform legislation passed out of the legislature with bipartisan support and only one no vote!
This historic legislation, spearheaded by the Governor’s Office, is supported by virtually every business and employer group in Arizona, both small and large.
The legislation will streamline and simplify Arizona’s sales tax system in a way that has been tried unsuccessfully for decades. This time we finally got it done.
Arizona has the most complicated sales tax system in the entire nation. This legislation will fix that problem and should save you taxes as well.
Under the current system, businesses that operate in more than one city, such as your A/C contractor or Circle K, have to remit multiple tax forms and checks to each city and the state every month. Under the new legislation, the business will remit their sales taxes for the state and all the cities to just one location, either online or via one simple form, to the Arizona Department of Revenue.
Under the current system, businesses are subjected to multiple audits by the state and multiple cities. Under the new legislation, a business will be subjected to only one single audit.
Under the current system, a service contractor, like your plumber, has to pay sales tax on 65% of the contract price which includes both labor and materials. The contractor then passes that tax onto you. Under the new legislation, the service contractor will pay sales tax on the materials only and you, the consumer won’t be charged a separate tax amount at all. No longer will the service contractor have to submit tax forms to every city and no longer will that contractor have to purchase tax licenses from every city.
The legislation goes into effect January 1, 2015. Between now and then I will continue to work with all those involved to make sure that this is done right.
As always, I’d love to hear from you. Contact me anytime at DLesko@azleg.gov or 602-926-5413.
Together, we can make a difference.
Arizona State Representative
Legislative District 21