Sign Up
SB 1749 Arizona Senate · 57th Legislature - First Regular Session

2025-2026; taxation; omnibus

SB 1749 amends Arizona's retail tax code to expand tax exemptions for specific goods and services. It directly affects businesses selling items like insulin, prosthetic appliances, durable medical equipment, prescription eyewear, food under SNAP programs, school meals, textbooks, and certain nonprofit sales. Key provisions clarify that sales of medical items (including insulin syringes and glucose test strips), food for school meals, and durable medical equipment meeting Medicare criteria are exempt from tax. The bill also defines "cash equivalents" (like gift cards) and clarifies exemptions for sales to nonresidents of motor vehicles. This omnibus tax bill passed the Arizona Legislature and was signed into law in June 2025.
Issues: ✓ Budget & TaxesSupports Budget & TaxesExpands tax exemptions for essential medical items, school meals, and textbooks, reducing tax burden on necessities and aligning with tax relief indicators.95% confidence ✓ EducationSupports EducationExempts school meals and textbooks from sales tax, reducing costs for schools and supporting educational access and affordability.85% confidence ✓ HealthcareSupports HealthcareBill exempts insulin, medical equipment, and prescription eyewear from retail tax, reducing costs for essential healthcare items and improving patient access to necessary medical supplies.90% confidence
Bill status signed all 5 stages cleared
Introduction
Jun 2025
Committee Review
Jun 2025
Senate Passage
Jun 2025
House Passage
Jun 2025
Signed into Law
Jun 2025
Introduced Jun 16, 2025 Signed Jun 27, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

Senate Engrossed Version → Chaptered Version · 3 edits
MINOR
The bill was finalized as Chapter 247, converting it from a draft Senate version into law. Substantive changes include clarifying the definition of manufacturing processes to exclude packaging and storage, updating eligibility criteria for public transit vehicles, and adding a new exemption for tangible personal property used in selling or distributing activities. These adjustments refine tax exemptions to ensure they apply correctly to specific government entities and business operations.
Scope change
The bill's scope was expanded by adding a new exemption category for property used in selling or distributing activities, while other sections were refined to clarify existing eligibility rules.
DEFINITION

The definition of manufacturing processes was updated to explicitly exclude chemicals used for packaging, storage, or transportation, clarifying that these activities do not qualify for the manufacturing chemical tax exemption.

ELIGIBILITY

Eligibility criteria for urban mass transit vehicles were adjusted to streamline the language regarding federal certificates and government operation, ensuring clarity on which vehicles qualify for tax exemptions.

A new exemption was added for tangible personal property used in selling or distributing activities, excluding telecommunications transmissions, to broaden the scope of tax-free business assets.

Floor votes · House Jun 26, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
13
Key actions
6
Committee
1
Amendments
1
Jun 27, 2025
Signed into law
Signed by Governor
executive
Jun 26, 2025
Lower · Passed
DP
lower
Jun 26, 2025
Lower · Passed
PASSED
lower
Jun 19, 2025
Upper · Passed
PASSED
upper
Jun 19, 2025
Upper · Passed
DPA
upper
Jun 17, 2025
Upper · Passed
DP
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of John Kavanagh
John Kavanagh
RRepublican
AZ
3