Just in time for back-to-school season, Arizona has provided some tax relief for textbook rentals. Arizona enacted a new transaction privilege tax (TPT) exemption for the rental of textbooks, aligning the tax treatment of textbook rentals with the state’s existing exemption for textbook sales. Under H.B. 2786, Laws 2026, the new exemption is effective October 1, 2026.
While the sale of textbooks was already exempt from Arizona TPT, businesses that rent textbooks will now receive similar treatment beginning October 1. Companies involved in textbook rental programs, educational materials, and student-focused services should review their taxability determinations and compliance processes to ensure qualifying rentals are treated appropriately.
Need a refresher on Arizona sales tax rules and exemptions? Visit the Sales Tax Institute’s Arizona State Page for Arizona-specific sales tax rules and resources, such as links to resale certificates and exemption forms, as well as guidance on the various exemptions available in the state. (H.B. 2786, Laws 2026, signed September 11, 2026)