By Luige del Puerto | Arizona Capitol Times
Mayors of Arizona cities offered an alternative plan to simplify the state’s sales tax code today, hours before a Senate panel began tackling key provisions of Gov. Jan Brewer’s proposal.
The mayors did so after Brewer’s supporters decided to go ahead with her approach to Transition Privilege Tax reform without a solid agreement with the cities.
Among other elements, the cities’ plan seeks an independent study to be completed by November, in effect postponing any legislative action on sales tax reform.
The study would answer questions about the rate of noncompliance with prime contracting taxes, where materials come from, how much are being purchased for construction activity and what other states and local governments have done.