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Panel to consider Arizona sales tax recommendations

PHOENIX — A task force appointed by Gov. Jan Brewer is to consider
recommendations for Arizona’s sales tax system is wrapping up its work.

The Transactions Privilege Tax Simplification Task Force is scheduled to meet
Thursday afternoon to adopt a final report.

Draft recommendations include having statewide administration of the sales tax
on behalf of the state, counties and municipalities and allowing only the state
to audit a business’ compliance.

Both of those draft recommendations have drawn opposition from municipalities.
Some now administer their own sales tax systems and run audits.

Another recommendation calls for changing how sales tax is applied to
contractors.

It’s now paid based on contracting activity but the draft recommendation says
there’d be better compliance if it is charged on construction materials when
they’re purchased.

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