Explanation of Senate Bill 1370

This bill, titled "Youth businesses; licenses; tax; exemption," is a proposed law that aims to support and promote small businesses operated by individuals under nineteen years of age.

Here are the key provisions of the bill:

Section 1: Youth businesses; license; permit; exemption

This section amends Title 9, Chapter 4, Article 8 of the Arizona Revised Statutes by adding a new section (9-500.50).

According to this section, a municipality (city or town) in Arizona cannot require any type of license or permit for a business if it meets the following two conditions:

1. The business is operated by a person under nineteen years of age.
2. The business is operated only occasionally.

Section 2: Youth businesses; license; permit; exemption

This section amends Title 11, Chapter 2, Article 4 of the Arizona Revised Statutes by adding a new section (11-269.29).

Similar to Section 1, this section states that a county in Arizona cannot require any type of license or permit for a business if it is operated by a person under nineteen years of age and only occasionally.

Section 3: Youth business; exemption from tax

This section amends Title 42, Chapter 5, Article 1 of the Arizona Revised Statutes by adding a new section (42-5045).

Under this section, a person under nineteen years of age who is engaging or continuing in business in Arizona is exempt from obtaining a transaction privilege tax license or remitting taxes if the gross proceeds of sales or gross income derived from their business is not more than $10,000 for the calendar year.

This means that these young business owners do not have to pay certain taxes imposed by the state and any special district transaction privilege tax.

If this bill is passed and becomes a law, it would ease regulatory burdens and financial obligations for young individuals starting small businesses in Arizona.