Bill > HB2639

This bill establishes a new "luxury item classification" for transaction privilege and use tax (TPT) in Arizona, imposing a 6.5% tax rate on the sale of luxury items. This new classification is separate from the existing retail classification, meaning the tax on luxury items is in addition to any other applicable retail tax. The bill defines "luxury item" to include jewelry priced over $5,000, and clothing, footwear, luggage, handbags, wallets, watches, and umbrellas priced over $1,000. It also amends existing laws to include this new classification in tax rate calculations and revenue distribution. Specifically, it adds the luxury item classification to the list of businesses subject to the additional 0.6% TPT rate from July 1, 2021, through June 30, 2041, and ensures that revenues collected from luxury item sales are credited to the state general fund. The bill requires a two-thirds vote for enactment due to its tax implications.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/84454