ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

Senate: Approp DP 6-4-0-0 | FIN DP 6-1-0-0 | 3rd Read 17-10-3-0-0

House: WM DP 4-3-0-2

SB 1085: TPT; use tax; exemption; aviation

Sponsor: Senator Dunn, LD 25

Caucus & COW

Overview

Expands the Transaction Privilege Tax (TPT) and Use Tax exemptions on aircraft to include outlined property used by people to maintain, repair or overhaul general aviation equipment and includes always hangered aircraft as an aircraft not required to register with the Arizona Department of Transportation (ADOT).

History

The following aircraft are not required to be registered with ADOT: 1) aircraft operated by an airline company and regularly scheduled to carry either people or property for hire in interstate, intrastate or international transportation; 2) aircraft owned by a nonresident who bases the aircraft in Arizona for less than 90 consecutive days or up to 90 days in a calendar year if the aircraft is not engaged in intrastate commercial activity; and 3) a balloon. A nonexempt aircraft is required file a registration form through ADOT within 60 days after the aircraft was brought into Arizona with the registration required to be renewed annually (A.R.S. § 28-8322).

A.R.S. § 42-5061 and A.R.S. § 42-5159 allow for certain forms of retail classifications to be exempt from TPT or Use Tax. This applies to the sale of an aircraft to a person that is under the proper certifications, regulations and operations, any foreign government, or persons who are not residents and will not use the property in Arizona unless it is to remove the property from Arizona. For any equipment and related supplies to maintain the aircrafts, this applies if it is by or on behalf of a certificated or licensed carrier of persons or property.

Provisions

1. Adds always hangered aircraft to the aircraft that are not required to be registered with ADOT. (Sec. 1)

2. Defines always hangered aircraft. (Sec. 1)

3. Expands the TPT and Use Tax exemptions to include aircraft, navigational and communication instruments and related accessories and equipment used by people to maintain, repair or overhaul general aviation equipment. (Sec. 2, 3)

4. Removes the requirement for machinery, tools, equipment and related supplies used or consumed in repairing, remodeling or maintaining aircraft, aircraft engines or component parts for aircraft to be done by or on behalf of a certified or licensed carrier of persons or property to qualify for the TPT and use tax exemption. (Sec. 2, 3)

5. Contains an applicability clause. (Sec. 4)

8. ---------- DOCUMENT FOOTER ---------

9. SB 1085

10. Initials VP/DD Page 0 Caucus & COW

11.

12. ---------- DOCUMENT FOOTER ---------