Understanding The State's Sales-Tax Reform: What's At Stake?

Bethany Barnes of Arizona-Sonora News Service brings us the latest on the complicated efforts to reform the state sales tax:


For a moment it looked like changing Arizona’s complex tax system, at least when it came to construction, might not be possible this legislative session.

While everyone’s still holding cards close to their chest and talks are ongoing, Arizona lawmakers think they’re found a way to simplify taxes for contractors without leaving a gaping hole in every city’s budget.

In the original proposal Tucson estimated it would lose around $7 million, but now it looks like the city could end up making money off the latest plan — something the bill’s sponsor, Rep. Debbie Lesko, R-Glendale, said she is working on fixing.

HB 2657 is Gov. Jan Brewer’s effort to simplify what many argue is the most complicated tax system in the country. The bill passed out of the House Ways and Means Committee unanimously but with many noting that something would need to be done about the bill’s harsh impact on cities.

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