ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session

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HB 2166: TPT; use tax; exemption; firearms

Sponsor: Representative Kaiser, LD 15

Committee on Ways & Means

Overview

Creates a transaction privilege tax (TPT) and use tax exemption for firearms and firearm safety equipment.

History

Statute outlines that the TPT retail classification is comprised of the business of selling tangible personal property at retail. The tax base for this classification is comprised of the gross proceeds of sales or income derived from the business. Statute permits that certain retail items be exempt from taxes imposed on this classification (A.R.S. § 42-5061).

Statute outlines that the use, storage or consumption of purchased tangible personal property may be subject to a use tax in the state of Arizona, and that certain tangible personal property is exempt from the use tax (A.R.S §§ 42-5155, 42-5159).

Provisions

1. Creates a TPT exemption for gross proceeds and income derived from the sale of firearms and firearm safety equipment. (Sec. 1, 2)

2. Creates a use tax exemption for firearms and firearm safety equipment. (Sec. 3)

3. Defines firearm and firearm safety equipment. (Sec. 1, 2, 3)

4. Contains an effective date of January 1, 2023. (Sec. 4)

5. Contains a conditional enactment clause. (Sec. 5)

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9.                   HB 2166

10. Initials VP/ES        Page 0 Ways & Means

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