The proposed bill, if enacted, would amend current statutes related to transaction privilege tax (TPT) and use tax exemptions for aviation-related transactions. Specifically, it would expand the scope of TPT deductions and use tax exemptions to include property used for maintaining, repairing, or overhauling general aviation aircraft, rather than limiting it to property used by certified or licensed carriers. This change would allow a broader range of individuals and businesses to benefit from these tax exemptions, thereby promoting the aviation industry in Arizona.

Additionally, the bill would introduce new definitions, such as "always hangared aircraft," and modify existing language to clarify the types of machinery, tools, and equipment eligible for tax deductions. It would also remove certain restrictions on aircraft entering the state for intrastate commercial operations. The amendments 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 enhance the tax framework surrounding aviation-related activities in Arizona.

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