By Howard Fischer Capitol Media Services via Arizona Daily Sun
The state House voted Wednesday to forego ever collecting sales taxes on digital products and services even as more and more of what Arizonans buy moves online — and untaxed.
HB 2479 would spell out in statute that the state cannot impose its 5.6 percent sales tax on everything from digital books and videos to cloud-based software, online storage and web hosting services. The 39-19 vote sends the measure to the Senate.
Left unanswered is whether Arizona is taxing any of that now and how muh revenue the state stands to lose if the measure becomes law.
Rep. Michelle Ugenti-Rita, R-Scottsdale, the sponsor of the measure, said estimates of foregone revenue are “inconclusive.” But she said if the Department of Revenue is now imposing such a levy, this measure will put a stop to it, saying it is the Legislature that should set tax policy, not state bureaucrats.
