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Deal cut on Gov. Brewer's sales tax overhaul

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CBS 5 News CBS 5 News
PHOENIX (AP) -

The Arizona Legislature is poised to adopt a major overhaul of the state's complicated sales tax collection system in the final hours of the session after a deal with cities and towns removed a major roadblock.

Cities and towns were able to hold off the overhaul after raising concerns they would lose revenue. But Gov. Jan Brewer made major compromises and the measure finally appeared ready to pass the Senate and House on Thursday night.

The overhaul would not impact what ordinary consumers pay at store checkouts. Instead it will make it easier for businesses that pay a so-called Transaction Privilege Tax.

The deal leaves in place a tax on new construction that funds many city projects but eliminates it for companies that do home and other repairs.

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