Sales tax loopholes leave Arizona $10 billion short - Tucson News Now

Sales tax loopholes leave Arizona $10 billion short

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By Mary Jo Pitzl / The Arizona Republic

PHOENIX - Arizona last year could have collected $10 billion -- an amount greater than the entire state budget -- if it had removed dozens of exemptions to the state's sales tax.

People don't pay state sales tax on a host of goods, including horse vitamins and motion-picture equipment. They also don't pay a tax on services, such as haircuts and massages.

As state lawmakers work on a budget for fiscal 2013, the prospect of removing exemptions -- or closing tax loopholes as critics call it -- might seem an easy fix for a state that faces looming deficits. A temporary sales tax that raises about $1 billion a year expires at the end of the next fiscal year, in June 2013.

Read more on the Republic's website at: http://www.azcentral.com/news/politics/articles/2011/11/28/20111128arizona-sales-tax-loopholes.html#ixzz1jYq57WjX
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