If enacted, this bill would amend current statutes related to transaction privilege tax (TPT) and use tax in Arizona, specifically expanding the scope of deductions and exemptions for aviation-related transactions. Currently, the law allows TPT deductions and use tax exemptions only for property used by certified or licensed carriers for maintaining, repairing, or overhauling aircraft. The bill would broaden this to include property used for these purposes by any individuals or entities, thereby allowing a wider range of aviation-related businesses to benefit from these tax provisions.

Additionally, the bill introduces new definitions, such as "always hangared aircraft," and modifies existing language to clarify the types of aircraft and property eligible for tax exemptions. It also removes certain restrictions on aircraft entering the state for intrastate commercial operations. The changes would take effect for taxable periods beginning on or after the first day of the month following the general effective date of the bill. Overall, these updates aim to support the aviation industry by reducing tax burdens on a broader array of aviation-related activities.

Statutes affected:
Introduced Version: 42-5061, 42-5159, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01
Senate Engrossed Version: 28-8322, 42-5061, 42-5159, 28-8322.01, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01