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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
House: WM DP 5-4-0-0 | 3rd Read 37-21-2-0-0Senate: FIN DP 7-0-0-0 | 3rd Read 23-5-2-0 |
HCR 2021: food; municipal tax; exemption
Sponsor: Representative Biasiucci, LD 30
Transmitted to the Secretary of State
Overview
Prohibits a city, town or other taxing jurisdiction from imposing a municipal transaction privilege tax on sale of food items intended for home consumption, unless the city, town or other taxing jurisdiction is compliant with outlined requirements for imposing a transaction privilege, sales, use, franchise or other similar tax or fee.
History
Current state law prohibits a tax exemption for specific sales of food (A.R.S. § 42-5102). However, it also allows a city, town or other taxing jurisdiction to impose a municipal transaction privilege tax on food items intended for home consumption (A.R.S. § 42-6015).
Provisions
1. States, the sale of food items intended for human consumption is subject to subsection C. (Sec. 1)
2. Prohibits a city, town or other taxing jurisdiction from imposing a municipal transaction privilege tax on the sale of food items intended for home consumption from and after June 30, 2027 unless the city, town or taxing jurisdictions meets requirements outlined in subsection C. (Sec. 1)
3. Outlines that a city, town or other taxing jurisdiction with a transaction privilege, sales, use, franchise or other similar tax or fee, however denominated, approved on or before January 1, 2025 must:
a) receive voter approval to increase a transaction privilege, sales, use, franchise or other similar tax or fee, however denominated, without exceeding two percent of the tax base if the current rate is less than two percent of the base;
b) not increase the rate of the transaction privilege, sales, use, franchise or other similar tax or fee if the current rate is two percent or more of the base; and
c) not have an increase of the transaction privilege, sales, use, franchise or other similar tax or fee, however denominated, occur in the twenty-four-month period before June 30, 2027. (Sec. 1)
4. Outlines that a city, town or other taxing jurisdiction without an approved transaction privilege, sales, use, franchise or other similar tax or fee, however denominated, on or before January 1, 2025 must:
a) receive voter approval before adopting or increasing a transaction privilege, sales, use, franchise or other similar tax or fee, however denominated, and cannot be more than two percent of the tax base; and
b) not adopt or increase a transaction privilege, sales, use, franchise or other similar tax or fee, however denominated, within the twenty-four-month period before June 30, 2027. (Sec. 1)
5. Contains a retroactivity clause. (Sec. 2)
6. Requires the Secretary of State to submit this proposition to the voters at the next general election. (Sec. 2)
7. Makes conforming changes. (Sec. 1)
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11. HCR 2021
12. Initials VP/DD Page 0 Transmitted
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