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Arizona Governor Vetoes Legislation Requiring Additional Regulatory Sales Tax Collection

Senate Bill 1091 would have impacted sales tax collection and distribution of Arizona businesses by implementing a real-time remittance of transaction privilege tax.

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At the urging of CAWA and its auto parts retailer members in Arizona, Governor Doug Ducey vetoed Senate Bill (SB) 1091, which would have impacted sales tax collection and distribution of Arizona businesses by implementing a real-time remittance of transaction privilege tax (TPT).

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Gov. Doug Ducey vetoed SB 1091 last week citing concerns about the unintended consequences the bill could have on private industries. CAWA’s legislative team, including Phoenix-based legislative advocate, has been aggressively working to oppose the legislation because implementation of real time remittance of TPT would have required significant changes to the current electronic payment systems for members, including adding exorbitant cost of doing business by requiring businesses to pay for a second hardware upgrade in order to comply with real time TPT remittance as outlined in the legislation.

“SB 1091 would have added increased costs of doing business to CAWA members in Arizona as well as an extra layer of increased regulatory burden should the bill have been signed into law,” said Rodney Pierini, CAWA president and CEO. “Our legislative team and CAWA members were heard loud and clear in our efforts to stop the legislation. We thank Governor Ducey for listening to our concerns and supporting businesses in Arizona by vetoing SB 1091.”    

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