Arizona

Feb 18, 2013 5:11 AM by Associated Press

Gov's sales tax overhaul set for 1st House hearing

PHOENIX (AP) - A proposal from Gov. Jan Brewer designed to ease the burden on businesses from one of the nation's most complex sales tax collections system is set for its first hearing in an Arizona House of Representatives committee.

One major provision is being met with stiff opposition from some lawmakers and cities and towns who argue it will decimate their revenue streams.

The House Ways and Means committee takes up the bill Monday afternoon. It's designed to make it easier for businesses who now must file returns with multiple towns and cities.

The controversial provision changes how tax is collected on construction. Right now it's based on where the building is built so growing areas get added revenue. Brewer wants it changed to where the materials are sold.

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