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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
animal breeders; dogs; cats; taxes
Purpose
Requires a breeder that sells a domestic companion animal to pay a transaction privilege tax (TPT), provide the consumer or purchaser with a valid certificate of veterinary inspection and maintain animal safekeeping requirements. Subjects a violator of the prescribed requirements relating to the sale of domestic companion animals to a civil penalty of up to $1,000 per violation.
Background
TPT is a gross receipts tax levied for the privilege of conducting business in Arizona and is imposed under 16 business classifications. Statute requires businesses to file a TPT return monthly and pay TPT to ADOR by the 20th day of the following month after the tax is incurred (A.R.S. §§ 42-5008 and 42-5014).
A pet dealer must: 1) maintain facilities in which cats or dogs are housed in a sanitary condition; 2) provide cats or dogs with potable water and adequate nutrition; 3) provide adequate space that is appropriate to the age, size, weight, species and breed of cat or dog; 4) promptly provide appropriate veterinary care when it is necessary; and 5) comply with other statutorily prescribed duties. A pet dealer who violates the animal care requirements is guilty of a class 1 misdemeanor (A.R.S. § 44-1799.04)
Except as otherwise outlined, monies received for and belonging to the state are deposited in the state treasury and credited to the state General Fund (A.R.S. § 35-142). If requiring breeders to pay a civil penalty for violating the TPT and safe breeding and environment requirements results in civil penalty collections, there may be a fiscal impact to the state General Fund.
Provisions
1. Requires a breeder that sells a domestic companion animal to pay TPT.
2. Requires the breeder, before selling a domestic companion animal, to protect the consumer or purchaser by:
a) providing the consumer or purchaser with a valid certificate of veterinary inspection that is provided by a veterinarian who is licensed for each domestic companion animal sold; and
b) maintaining statutorily prescribed consistent conditions that include a safe indoor and outdoor environment to ensure the health and well-being of each domestic companion animal.
3. Requires a breeder to maintain safe breeding practices and make reasonable efforts to find humane placement or, if required, euthanasia.
5. Defines breeder as any person that breeds and raises a domestic companion animal for the express purpose of selling the domestic companion animal, including a hobby breeder.
6. Defines hobby breeder as any person that breeds two or more litters of domestic companion animals per year.
7. Defines consumer or purchaser as a person who purchases any domestic companion animals without an intent to resell.
8. Defines domestic companion animal as any domesticated dog or cat that is bred and kept as a household pet or companion and does not include livestock
9. Becomes effective on the general effective date.
Prepared by Senate Research
February 13, 2026
SB/NRG/hk