Closing Arizona's Tax Loopholes

Over the years, Arizona’s tax code has been created and updated in a piecemeal, haphazard way.  As a result, the state gives away $12 Billion every year in tax loopholes.   Many are important tax incentives that help grow business statewide; others are just plain strange.

Here’s a partial list of the weirder ones:

• Nail Salons pay no taxes.
• Parking garages – you pay to park there, but they pay no tax.
• Dance schools pay $0 in taxes.
• Tax free:  “Sales of Motor Vehicles at Auction to Nonresidents of this State for use Outside of this State.”
• The bottles of shampoo and lotion that you get in a hotel room are tax-free.
• The food, beverages and condiments sold to you on an airplane are tax-free.
• When warranties and service contracts are sold, there is no tax.
• “Gross Income from Motor Vehicle Manufacturer's Cash Rebates if Assigned to the Retailer.”  Whether you can figure out what that means or not, either way – you still don’t pay tax.
• Some kinds of cosmetic surgery in Arizona is tax-free.
• Exclusive country club memberships are tax-free.
• And print publications that make money by advertising don’t pay taxes on what they sell.

By closing just some of the loopholes listed here, Arizona would save $75 million.

Under Terry Goddard’s leadership, we can stop the unnecessary giveaway of taxpayer money, and move us rapidly toward a balanced state budget, and protect Arizona from further devastating cuts to education and other essential services.