Brewer signs sales tax overhaul bill - WNEM TV 5

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Brewer signs sales tax overhaul bill

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Gov. Brewer signs HB 2111, transaction privilege tax changes, into law. (Source: CBS 5 News) Gov. Brewer signs HB 2111, transaction privilege tax changes, into law. (Source: CBS 5 News)

Gov. Jan Brewer has signed 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 signed 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.

The bill was sponsored by State Rep. Debbie Lesko.

"As Arizona has the most complicated sales tax system in the nation, the success of this reform was a big win for Arizona taxpayers and businesses alike," Leska said in a statement. "It has been tried multiple times before with no success but this time, we got it done."

Copyright 2013 Associated Press. All rights reserved.  CBS 5 (KPHO Broadcasting Corporation) contributed to this report.

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