State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2217: TPT; diapers; formula; feminine hygiene

PRIME SPONSOR: Representative Hernandez, LD 2

BILL STATUS: Ways & Means

 

Legend: TPT – Transaction Privilege Tax Amendments – BOLD and Stricken (Committee)

Abstract

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRelating to a feminine hygiene product, diaper and baby formula TPT exemption.

Provisions

1.       Exempts each of the following from TPT and use tax through TY 2026:

a.       Tampons

b.       Sanitary napkins

c.        Menstrual sponges

d.       Menstrual cups

e.       Other feminine hygiene products

f.         Baby formula

g.       Diapers (Sec. 1-3)

Additional Information

TPT is imposed on a vendor for the privilege of conducting business in Arizona. Under this tax, the seller is responsible for remitting to the state the entire amount of tax due based on the gross proceeds or gross income of the business. While the tax is commonly passed on to the consumer at the point of sale, it is ultimately the seller’s responsibility to remit the tax. TPT is broken down into 16 different classifications, one of which is the retail classification. The retail classification is comprised of businesses selling tangible personal property at retail.

Use tax is assessed on items purchased in other states and brought into Arizona for storage, use, or consumption and for which no tax or a tax at a lesser rate has been paid in another state. Use tax is imposed on all transactions in which TPT was not.

 

 

 

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Fifty-third Legislature                  HB 2217

Second Regular Session                               Version 1: Ways & Means

 

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