animal breeders; dogs; cats; taxes

Plain English Breakdown

Checked against official source text during the last sync.

Tax for Dog and Cat Breeders

This bill requires dog and cat breeders to pay a transaction privilege tax, provide health certificates, maintain safe conditions, and face penalties if they do not follow the rules.

What This Bill Does

• Requires dog and cat breeders who sell animals to pay a transaction privilege tax (TPT).
• Needs breeders to give buyers a valid health certificate from a licensed veterinarian for each animal sold.
• Asks breeders to keep safe indoor and outdoor environments that meet state standards for the health of dogs and cats.
• Makes it against the rules if breeders do not follow these requirements, with fines up to $1,000 per violation.

Who It Names or Affects

• Dog and cat breeders who sell animals.
• People buying pets from breeders.

Terms To Know

Transaction Privilege Tax (TPT)

A tax that businesses pay for the right to do business in Arizona.

Hobby breeder

Someone who breeds two or more litters of dogs or cats per year as a hobby.

Limits and Unknowns

• The bill does not specify how the collected penalties will be used.
• It is unclear if this law will affect small-scale breeders differently than larger operations.

Official Summary Text

SB1539 - 572R - Senate Fact Sheet

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COMMITTEE

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