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Gov. Brewer signs sales tax changes into law

Governor Jan Brewer signed into law an overhaul of the way the state collects sales taxes Tuesday. It was one of her top priorities in this year’s legislative sessions. Lawmakers approved the measure at the end of their session, after reaching a compromise with cities and towns. They were worried about a change to the way construction is taxed, which they argued would cost them money.

In the end, only some home repairs will be subject to the new system, which taxes materials where and when they are bought. Mesa Mayor Scott Smith said he is happy cities and business leaders could compromise on a simpler system that protects municipalities.

 "I think people underestimate the impact that would have happened had cities’ revenue bases been eroded. When cities are not able to deliver top-notch services, it’s not good for business in the long term," Smith said.

Under the new system, businesses that operate in more than one city or town will be able to submit their sales taxes in one place and only be subject to a single audit.