Senate Engrossed

 

aircraft registration fees; taxation; repeal

(now: aircraft registration; taxation; repeal; appropriation)

 

 

 

 

State of Arizona

Senate

Fifty-fifth Legislature

First Regular Session

2021

 

 

 

SENATE BILL 1406

 

 

 

AN ACT

 

amending sections 28-8201, 28-8202 and 28-8244, Arizona Revised Statutes; repealing sections 28-8321, 28-8322, 28-8323, 28-8324, 28-8325, 28-8326, 28-8327, 28-8328, 28-8329, 28-8330, 28-8331, 28-8332, 28-8334, 28-8335, 28-8336, 28-8337, 28-8338, 28-8339, 28-8340, 28-8341, 28-8342, 28-8343, 28-8345, 28-8346 and 28-8347, Arizona Revised Statutes; amending sections 28-8382 and 28-8383, Arizona Revised Statutes; appropriating monies; relating to aircraft registration.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


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

Section 1. Section 28-8201, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8201. Definitions

In this article and articles 2, through 3 and 5 of this chapter, unless the context otherwise requires:

1. "Aeronaut" includes any aviator, pilot, balloonist and other person participating in the operation of aircraft while in flight.

2. "Aircraft" includes a balloon, airplane, amphibian and craft used for navigation through the air.

3. "Passenger" includes a person who rides in aircraft but has no part in its operation.

4. "Seizure of aircraft" means the physical disabling or securing of an aircraft by locks, chains or other mechanical devices. END_STATUTE

Sec. 2. Section 28-8202, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8202. State aviation fund; appropriation

A. The state aviation fund is established consisting of the following:

1. Aviation fuel taxes or motor vehicle fuel taxes deposited by the department.

2. Monies deposited by the department as a result of the sale of an abandoned aircraft as defined in section 28-8243 or seized aircraft.

3. The amount of flight property tax that the department of revenue has deposited pursuant to section 42-14255.

4. Registration fees, license taxes and penalties collected pursuant to article 4 of this chapter.

5. 4. Monies received by the department from the operation of airports under this article and articles 2, through 3 and 5 of this chapter.

6. 5. The amount of jet fuel excise tax and jet fuel use tax that the department of revenue has deposited pursuant to section 42-5353.

6. legislative appropriations.

B. On notice from the department, the state treasurer shall invest and divest monies in the state aviation fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

C. The department shall administer monies that are appropriated by the legislature from the state aviation fund.

D. The board shall distribute monies appropriated to the department from the state aviation fund for planning, design, development, acquisition of interests in land, construction and improvement of publicly owned and operated airport facilities in counties, incorporated cities and towns and Indian reservations. The board shall distribute these monies according to the needs for these facilities as determined by the board.  No Not more than ten percent of the average annual revenue that the fund received for the past three years may be awarded to any one airport in grants in any fiscal year. For the purposes of this subsection, "publicly owned and operated airport facility" means an airport and appurtenant facilities in which one or more agencies, departments or instrumentalities of this state, a city, town or county of this state or an Indian tribe or tribal government holds an interest in the land on which the airport is located that is clear of any reversionary interest, lien, easement, lease or other encumbrance that might preclude or interfere with the possession, use or control of the land for public airport purposes for a minimum period of twenty years.

E. The sum of $3,000,000 is appropriated from the state general fund in fiscal year 2021-2022 and each fiscal year thereafter to the state aviation fund for use as prescribed by subsection D of this section. END_STATUTE

Sec. 3. Section 28-8244, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8244. Hearing; appeal

A. A person who is aggrieved by a decision made within the department pursuant to this article or article 1, 3, 4 or 5 of this chapter may request a hearing before the director. The person shall submit a written request for the hearing to the department within thirty days after the decision of the department.

B. Except as otherwise provided in this section, the director shall hold the hearing in accordance with title 41, chapter 6, article 6.

C. A party to the hearing before the director may appeal pursuant to title 12, chapter 7, article 6. END_STATUTE

Sec. 4. Heading change

The article heading of title 28, chapter 25, article 4, Arizona Revised Statutes, is changed from "AIRCRAFT REGISTRATION AND TAXATION" to "AVIATION FUEL TAX".

Sec. 5. Repeal

Sections 28-8321, 28-8322, 28-8323, 28-8324, 28-8325, 28-8326, 28-8327, 28-8328, 28-8329, 28-8330, 28-8331, 28-8332, 28-8334, 28-8335, 28-8336, 28-8337, 28-8338, 28-8339, 28-8340, 28-8341, 28-8342, 28-8343, 28-8345, 28-8346 and 28-8347, Arizona Revised Statutes, are repealed.

Sec. 6. Section 28-8382, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8382. License requirement; application; renewal; liability

A. A person shall not act as an aircraft dealer without first obtaining a license from the director that authorizes the person to engage in the business of an aircraft dealer.

B. A person shall apply for a license on forms prescribed or authorized by the director. The person shall submit with the application any required documents and the bond or cash deposit prescribed by section 28-8384. On approval of the application the director shall issue the license.

C. A license issued to an aircraft dealer is valid for one year and only for the person in whose name it is issued. The aircraft dealer:

1. Shall display the license conspicuously in the principal place of business of the aircraft dealer.

2. Shall annually renew the license.

3. May not assign the license.

D. If an aircraft dealer changes the dealer's place of business, the dealer shall notify the director in writing within ten days after the change.

E. In addition to any other penalties provided by statute, a person who acts as an aircraft dealer without first obtaining a license is liable for both:

1. The license tax imposed by section 28-8335 on aircraft owned by the person or held by the person on consignment for sale or exchange.

2. any transaction privilege tax or similar excise tax on the sale of any aircraft sold, exchanged or brokered by the person that is not reported and paid as required by law. END_STATUTE

Sec. 7. Section 28-8383, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8383. Aircraft dealer duties

A. An aircraft dealer shall both:

1. Obtain a tax privilege license from this state.

2. Notify the department within ten days after the purchase or sale of an aircraft or after accepting an aircraft on consignment and file this notification whether or not the aircraft dealer takes title to the aircraft. If the notification is not filed in a timely manner, the aircraft is subject to the license tax imposed by section 28-8335.

B. An aircraft purchased by a dealer for resale or exchange may be flown only for the purpose of demonstrating it to a prospective buyer. Any other use of the aircraft subjects the aircraft to the license tax prescribed by section 28-8335. The aircraft dealer shall notify the department and register the aircraft within fifteen days after any other use of the aircraft occurs. END_STATUTE