Arizona could lose $137 million or gain $19 million in sales tax change

SalesTaxConstruction1By Bethany Barnes | Tucson Weekly

Simplifying Arizona’s sales tax just got a whole lot more complicated.

While lawmakers worked on sealing the deal on HB 2657’s most continuous issue, construction tax, the Joint Legislative Budget Committee ran some numbers.

What they came up with varies, by a lot.

The committee ran two scenarios one that mimics the Department of Revenue’s methodology and another scenario that Rep. John Kavanagh, R-Fountain Hills, described as more of a “worst-case” situation.

The result is a fiscal note that estimates that the general fund could gain around $19 million or lose $137 million because of the bill.

It’s a level of uncertainty that’s troubling and creates yet another obstacle, Kavanagh said.

The bill relies on three different assumptions, which the committee took into account: how many people are not complying, how much materials cost, and how much retail will increase.

Continued: 

Also: Voters defeat Bullhead City sales tax initiative

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