animal breeders; dogs; cats; taxes

Plain English Breakdown

The official source states the law becomes effective on the 'general effective date' without specifying a calendar day, leaving the exact start time uncertain.

SB1539: Rules for Dog and Cat Breeders

This law requires breeders who sell dogs or cats to pay a tax, provide health certificates, keep safe living conditions, follow humane breeding practices, and face fines if they break the rules.

What This Bill Does

• Requires breeders selling domestic companion animals to pay transaction privilege tax (TPT).
• Mandates that breeders give buyers a valid veterinary inspection certificate for each animal sold.
• Orders breeders to maintain safe indoor and outdoor environments as required by existing state law.
• Directs breeders to follow safe breeding practices and make reasonable efforts to find humane homes or, if needed, euthanasia.
• Sets a civil penalty of up to $1,000 for every violation of these requirements.

Who It Names or Affects

• People who breed dogs or cats specifically to sell them as pets.
• Hobby breeders who produce two or more litters per year.
• Buyers purchasing a dog or cat without the intent to resell it.

Terms To Know

Breeder

Any person who breeds and raises dogs or cats for the purpose of selling them, including hobby breeders with two or more litters per year.

Domestic companion animal

A domesticated dog or cat kept as a household pet; this does not include livestock.

Transaction privilege tax (TPT)

A state business tax collected on the sale of goods, which breeders must now pay when selling pets.

Limits and Unknowns

• The law becomes effective on the general effective date, but no specific calendar date is listed in this text.
• It is unclear how much money will be collected from fines or taxes until enforcement begins.
• The bill defines penalties but does not detail the specific process for collecting them.

Official Summary Text

SB1539 - 572R - Senate Fact Sheet

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ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
S.B. 1539

animal breeders; dogs;
cats; taxes

Purpose

Requires a
breeder that sells a domestic companion animal to pay a transaction privilege
tax (TPT), provide the consumer or purchaser with a valid certificate of
veterinary inspection and maintain animal safekeeping requirements. Subjects a
violator of the prescribed requirements relating to the sale of domestic
companion animals to a civil penalty of up to $1,000 per violation.

Background

TPT is a gross
receipts tax levied for the privilege of conducting business in Arizona and is
imposed under 16 business classifications. Statute requires businesses to file
a TPT return monthly and pay TPT to ADOR by the 20th day of the following month
after the tax is incurred (A.R.S. ��
42-5008

and
42-5014
).

A pet dealer
must: 1) maintain facilities in which cats or dogs are housed in a sanitary
condition; 2) provide cats or dogs with potable water and adequate nutrition;
3) provide adequate space that is appropriate to the age, size, weight, species
and breed of cat or dog; 4) promptly provide appropriate veterinary care when
it is necessary; and 5) comply with other statutorily prescribed duties. A pet
dealer who violates the animal care requirements is guilty of a class 1
misdemeanor (‎
A.R.S.
� 44-1799.04
)

Except as
otherwise outlined, monies received for and belonging to the state are
deposited in the state treasury and credited to the state General Fund (
A.R.S.
� 35-142
). If requiring breeders to pay a civil penalty for violating the
TPT and safe breeding and environment requirements results in civil penalty
collections, there may be a fiscal impact to the state General Fund.

Provisions

1.

Requires a breeder that sells a domestic companion animal to pay TPT.

2.

Requires the breeder, before selling a domestic companion animal, to
protect the consumer or purchaser by:

a)

providing
the consumer or purchaser with a valid certificate of veterinary
inspection
that is provided by a veterinarian who is
licensed for each domestic companion animal sold; and

b)

maintaining
statutorily prescribed consistent conditions that include a safe indoor and
outdoor environment to ensure the health and well-being of each domestic
companion animal. �

3.

Requires a breeder to maintain safe breeding practices and make
reasonable efforts to find humane placement or, if required, euthanasia.

4.

Subjects a violator of the prescribed requirements relating to the sale
of domestic companion animals to a civil penalty of up to $1,000 per violation.

5.

Defines
breeder
as any person that breeds and raises a domestic
companion animal for the express purpose of selling the domestic companion
animal, including a hobby breeder.

6.

Defines
hobby breeder
as any person that breeds two or more
litters of domestic companion animals per year.

7.

Defines
consumer or purchaser
as a person who purchases any
domestic companion animals without an intent to resell.

8.

Defines
domestic companion animal
as any domesticated dog or cat
that is bred and kept as a household pet or companion and does not include
livestock

9.

Becomes effective on the general effective date.

Prepared by Senate Research

February 13, 2026

SB/NRG/hk

Current Bill Text

SB1539 - 572R - I Ver

REFERENCE TITLE:
animal breeders; dogs; cats; taxes

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1539

Introduced by

Senator
Payne

AN
ACT

amending title 44, chapter 11, arizona
revised statutes, by adding article 2.1; relating to business regulations.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 44, chapter 11, Arizona
Revised Statutes, is amended by adding article 2.1, to read:

ARTICLE 2.1. domestic
companion ANIMAL breeders

START_STATUTE
44-1617.

Sale of domestic companion animals; transaction privilege tax;
requirements; civil penalty; definitions

A. A breeder that sells a domestic
companion animal shall pay transaction privilege tax pursuant to title 42,
CHAPTER 5.

B. Before selling a domestic
companion animal, the breeder shall do all of the following to protect the
consumer or purchaser:

1. Provide the consumer or purchaser
with a valid certificate of veterinary inspection that is provided by a
veterinarian who is licensed pursuant to title 32, chapter 21 for each domestic
companion animal sold.

2. Maintain consistent conditions as
prescribed in section 44-1799.04 that include a safe indoor and outdoor
environment to ensure the health and well-being of each domestic companion
animal.

C. A breeder shall maintain safe
breeding practices and make reasonable efforts to find humane placement or, if
required, euthanasia.

D. A person that violates this
section is subject to a civil penalty of not more than $1,000 per violation.

E. For the purposes of this section:

1. "Breeder":

(
a
) Means any
person that breeds and raises a domestic companion animal for the express
purpose of selling the domestic companion animal.

(
b
) Includes a
Hobby breeder. For the purposes of this subdivision, "Hobby
breeder" means any person that breeds two or more litters of domestic
companion animals per year.

2. "Consumer or purchaser"
means a person who purchases any domestic companion animal without an intent to
resell.

3. "Domestic companion
animal":

(
a
) means any
domesticated dog or cat that is bred and kept as a household pet or companion.

(
b
) does not
include livestock as defined in section 3-1201.
END_STATUTE