House of Representatives

HB 2084

sales tax exemption; fire apparatus

Sponsors: Representative Huffman, Representative Nelson

DP	Committee on Counties, Municipalities and Military Affairs
DPA	Committee on Ways and Means
DPA	Caucus and COW
X	Third Read
	As Passed the House

HB 2084 exempts new and used fire apparatuses (fire trucks) purchased by a fire department or fire district from TPT and use taxes.

History

Transaction privilege tax (TPT) is a tax on the right to conduct business, though often called a sales tax, TPT tax differs from sales tax in that the business is responsible for paying the TPT tax while sales tax is paid by the buyer.  Use tax is similar to TPT or sales tax but is charged specifically on purchases made out of state but used in state.  HB 2084 will exempt the purchase of fire trucks by a political subdivision from TPT and Use tax.

According to the Arizona Fire Districts Association (AFDA), ladder trucks cost up to $1,000,000. Fire trucks equipped with a pump are purchased most often and generally cost between $350,000 and $375,000 before taxes when new.  Approximately 200 fire trucks are purchased per year statewide. 

A fiscal note has been prepared on this bill.

Provisions

· Exempts the purchase of a fire apparatus by a fire department or fire district from TPT or use taxes.

· Fire apparatus is defined in this bill as a vehicle with a gross weight of least seventeen thousand pounds that is used by a fire department or fire district to respond to fire emergencies and provide support for fire suppression and other emergency operations and that displays signage indicating that the vehicle is owned by a political subdivision. 

· Provides an effective date from and after August 31, 2006.

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47th Legislature                     

First Regular Session  2          March 16, 2006

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