Gov. Jan Brewer is set to sign a major overhaul of the state’s sales tax collection system after compromising with cities and towns that worried it would cut their revenue.
The Transaction Privilege Tax system changes Brewer plans to sign Tuesday won’t affect what ordinary consumers pay at retail stores. But they do set the stage for the eventual collection of taxes on internet sales.
The overhaul’s biggest impact is on businesses. Currently they have to file tax returns in each municipality where they do business and can undergo multiple audits. There will now be one filing and one audit statewide.
Cities and towns fought changes in new construction taxes because it would cut revenue from growing cities. Brewer agreed to a revision that leaves that tax in place.