State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB1143: S/E TPT; crop production tools

PRIME SPONSOR: Senator Griffin, LD 14

BILL STATUS: Land, Agriculture & Rural Affairs

 

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 TPT and use tax exemption.

Provisions

1.       Expands the list of agricultural materials exempt from TPT and use tax to include:

a.       liners;

b.       transplants;

c.        soil and plant additives;

d.       agricultural minerals;

e.       auxiliary soil and plant substances;

f.         micronutrients;

g.       fertilizers; and

h.       prop protection tools including:

i.         insecticides, herbicides, fungicides, rodenticides;

ii.       soil fumigants;

iii.     desiccants;

iv.     harvest aids;

v.       adjuvants;

vi.     plant nutrients; and

vii.   plant growth regulators. (Sec. 1, 2)

Current Law

The sale of seeds, seedlings, roots, bulbs, cuttings and other propagative materials to persons who use these items to commercially produce agricultural, horticultural, viticultural or floricultural crops is exempt from TPT. TPT is a tax placed on a vendor for the privilege of conducting business in Arizona. The seller is responsible for remitting to the State the entire amount of the tax due based on the gross proceeds or gross income. TPT is commonly passed on to the consumer at the point of sale. TPT is categorized into 16 different classifications, one being the retail classification, which is comprised of businesses selling tangible personal property at retail (A.R.S. § 42-5061).

Additionally, the storage, use or consumption of seeds, seedlings, roots, bulbs, cuttings and other propagative materials for use in commercially producing agricultural, horticultural, viticultural or floricultural crops is exempt from taxation. Use tax is levied on items purchased out-of-state that are brought to Arizona for storage, use or consumption. The tax is levied when no tax or a lesser tax rate has been paid in a different state. Use tax is also applied when TPT is not imposed in a transaction. (A.R.S. § 42-5159).

 

 

 

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Fifty-third Legislature                             SB 1143

Second Regular Session                          Version 1: Land, Agriculture & Rural Affairs

 

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