By Ben Giles | Arizona Capitol Times
An effort to forgo sales taxes on digital goods and services has stalled while state budget analysts try to figure out how much Arizona may stand to lose in tax revenue.
The House of Representatives already approved a bill to exempt digital items like videos, cloud-based software and other streaming and hosting services from the state’s 5.6 percent sales tax. The Senate appeared poised to approve an identical measure on March 1, at least until the League of Arizona Cities and Towns released estimates of roughly $119 million the state would lose by no longer taxing those items.
Now the sponsor of SB1392, Sen. David Farnsworth, R-Mesa, said he won’t push for a vote on the measure until state analysts with the Joint Legislative Budget Committee can determine the veracity of the league’s research.
