PHOENIX (AP) - A proposal that would overhaul Arizona's complex sales tax collection process got a frosty reception from cities and towns but a strong endorsement from business leaders before unanimously passing its first Arizona House of Representatives committee.
The proposal from Gov. Jan Brewer is designed to ease the burden on businesses.
Cities and towns object because of the way it shifts taxing on new construction. It's now based on where the building is done so growing areas get added revenue. Brewer wants it changed to where the materials are sold.
Maricopa Mayor Christian Price testified at the House Ways and Means committee Monday that his city would lose millions in revenue a year. Business leaders say the current system is a regulatory nightmare.
Major revisions are expected to address towns' concerns.
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