Ballot Measure to Ban Sales Tax on Services Likely

By Donald Loose

Last week, the Arizona Association of Realtors submitted more than 400,000 signatures on petitions to put a measure on the November ballot to amend the state’s constitution to ban sales tax on services. Exempt services would include realty, legal, medical, dental, accounting and auto repair. The measure will be placed on the ballot if the Arizona Secretary of State determines that at least 225,963 of the signatures are valid. Arizona currently imposes a sales tax on certain goods, but not on services. Three states impose a sales tax on services, and other states are discussing it. This measure, if passed, would bar Arizona lawmakers from ever taxing services.