This bill proposes several updates to the Arizona Revised Statutes concerning transaction privilege and use tax. It introduces new provisions that exempt sales of fencing and livestock watering materials from taxation when used in farming, ranching, or noncommercial livestock boarding. Specifically, it defines "fencing materials" and "watering materials" to include various items designed for livestock use, thereby broadening the scope of tax exemptions for agricultural-related purchases. Additionally, it clarifies that gross proceeds from contracts for the construction of these materials are also exempt from taxation.

The bill also includes a repeal of a previously amended section of the statute, specifically section 42-5159, as amended by Laws 2025, chapter 251, section 13. Furthermore, it updates references within the existing statutes by changing the subsection designation from "O" to "P" in multiple instances. The act will take effect for taxable periods beginning on or after the first day of the month following its general effective date.

Statutes affected:
Introduced Version: 42-5061, 42-5075, 42-5159, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01, 42-5032.03, 48-4238, 48-4201