SB 1120

Senate Bill (SB) 1120: (now fine art; TPT; exemption)  

Sponsor: Senator Lesko

Overview: The SB 1120 striker creates an exemption for sales of fine art to nonresidents who are physically in the store completing a purchase when the seller ships the artwork out of state to the buyer for their use at an out-of-state location.

League Position: OPPOSE - The League opposes this bill because it undoes a tax uniformity change agreed upon as part of HB 2111 in 2013 and has a negative impact on shared revenue.

Summary: The SB 1120 striker creates an exemption for sales of fine art to nonresidents who are physically in the store completing a purchase when the seller ships the artwork out of state to the buyer for their use at an out-of-state location. This partially undoes a tax uniformity change agreed upon as part of HB 2111 in 2013. That bill eliminated the state exemption for sales to nonresidents who are physically in the store completing a purchase when the item was shipped by the seller out of state to the buyer. This essentially reinstates that exemption, but only for sales of "fine art" as defined in A.R.S. 44-1771. Although this will have a negative impact on shared revenue, the bill does not include preemption against municipal tax.

Updates

03/25/15: House approp held

03/16/15: from House ways and means do pass

03/0315: referred to House ways and means, approp.

02/26/15: passed Senate 19-9; ready for House

02/25/15: Senate COW approved with amendment

02/24/15: from Senate rules okay

02/19/15: from Senate fin with amendment

02/18/15: The strike-everything amendment to SB 1120 passed Senate Finance on a 3-2 vote. The bill goes on to the Rules Committee.