This bill proposes several updates to the Arizona Revised Statutes concerning luxury tax, specifically amending definitions and tax rates related to tobacco and alcoholic beverages. Notably, it introduces new definitions for terms such as "ready-to-drink spirits product," which refers to distilled spirits mixed with other beverages not exceeding ten percent alcohol by volume, and modifies existing definitions for "place of business," "smoking tobacco," and "spirituous liquor." The bill also establishes a new tax rate of $1.50 per gallon for ready-to-drink spirits products and adjusts existing tax rates for various alcoholic beverages and tobacco products.

Additionally, the bill clarifies the responsibilities of wholesalers regarding tax payments and reporting. It mandates that wholesalers of ready-to-drink spirits products must pay the applicable tax and add it to the sales price, similar to existing requirements for spirituous and vinous liquors. The bill also specifies that wholesalers must file a bond with the department, with the total amount set at $2,000, and outlines the penalties for late tax payments. Overall, these changes aim to modernize the tax framework for luxury items in Arizona, ensuring clarity and compliance within the industry.

Statutes affected:
Introduced Version: 42-3001, 42-3052, 42-3351, 42-3354, 43-3355, 44-7111, 4-205.10, 4-101, 44-7101, 42-1125, 42-1123, 42-1105.02, 42-3355