A legislative priority of NFIB Arizona will soon become law. On May 7, Gov. Katie Hobbs signed House Bill 2119, a measure authored by Speaker Pro Tempore Neal Carter and strongly lobbied for by NFIB.

“House Bill 2119 will help by informing businesses of a possible local sales tax change prior to a local government adopting it,” said Chad Heinrich, state director for NFIB in Arizona. “This solves what could be countless problems down the road by simply informing business owners of their tax obligations and the possibility of any changes if the local council takes action. Small businesses can thank Rep. Neal Carter for his leadership and Governor Hobbs for signing this measure that represents basic fairness for private businesses that may be subject to locally adopted tax options.”

According to the Arizona Tax Research Association, “Arizona is one of the few states that allows for an independent municipal sales tax structure … For decades, this has caused confusion among taxpayers who are not taxable at the state level and are not made aware of a city tax liability until they are audited by the city.

“HB 2119 requires municipalities to inform city business license applicants if they’re subject to a local or model option at the time of obtaining the application from the city.”