State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB1334: independent functional utility; deduction

PRIME SPONSOR: Senator Mesnard, LD 17

BILL STATUS: Ways & Means

                               

 

Overview

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRemoves, for purposes of calculating the tax base for the prime contracting classification and exemption from municipal tax, the term "nonpermanent" from the definition of independent functional utility (IFU).

History

Current law provides a deduction from the contracting tax base for gross proceeds of sales or gross income that is derived from a contract for the installation, assembly, repair or maintenance of machinery, equipment or other tangible personal property that is either deducted from the tax base of the retail classification or that exempt from use tax and that has IFU. (A.R.S. §42-5075.B.7)

IFU is also defined. (A.R.S. §42-5075.B.7.d)  

Provisions

1.       Removes, from the definition of IFU, for purposes of calculating the tax base for the prime contracting classification and exemption from municipal tax, the term "nonpermanent" from the definition of IFU. (Sec. 1, 2 and 3)

2.       Includes a legislative intent clause. (Sec. 4)

3.       Effective retroactively to taxable periods beginning from and after June 30, 1997. (Sec. 5)

4.       Makes technical and conforming changes.

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8.       Fifty-fourth Legislature                       SB 1334

9.       First Regular Session                            Version 1: Ways & Means

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