ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature Second Regular Session
	Senate: GOV DP 5-3-0-0 | 3^rd Read 16-10-4-0-0 | FINAL 16-10-4-0-0 House: WM DP 6-1-2-1 | 3^rd Read 36-24-0-0-0

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SB 1370: youth businesses; licenses; tax; exemption

Sponsor: Senator Bolick, LD 2

Transmitted

Overview

Prohibits a municipality or county from requiring a business permit or license for a person who is under 19 years old and who operates the business occasionally. Exempts the qualified person's business from obtaining a Transaction Privilege Tax (TPT) license if the business makes less than $10,000 in a calendar year.

History

Every person who receives gross proceeds of sales or gross income on which TPT is imposed and who desires to engage or continue in business must apply to the Department of Revenue for an annual TPT license accompanied by a fee of $12. A person cannot engage or continue in business until the person has obtained a TPT license (A.R.S. § 42-5005).

A common council, within the limits of the municipality may: 1) fix the amount of license taxes to be paid by a person, firm, corporation or association for carrying on any business; 2) fix penalties for failure to comply; and 3) authorize clerks to issue and direct the manner of issuing and registering licenses (A.R.S. § 9-240).

Provisions

1. Prohibits a municipality or county from requiring any type of license or permit for a business that is:

a) operated by a person who is under 19 years old; and

b) operated only occasionally. (Sec. 1-2)

2. Exempts a person who is under 19 years old and is engaging in business in Arizona from being required to obtain a TPT license and remitting any TPT or duly enacted special district TPT if the gross proceeds of sales or gross income from their business is less than $10,000 in a calendar year. (Sec. 3)

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6.                   SB 1370

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