SB 1085 Arizona Senate · 57th Legislature - First Regular Session

TPT; use tax; exemption; aviation

SB 1085 clarifies that certain aircraft are exempt from Arizona's use tax when they are already exempt from registration. This specifically applies to commercial airlines operating regularly scheduled flights and nonresident aircraft temporarily based in Arizona for up to 90 days per year. The bill ensures these aircraft don't face double taxation by aligning tax exemptions with registration rules. It directly affects aviation businesses, including airlines and operators of temporary aircraft, by streamlining compliance with Arizona's tax and registration requirements.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Mar 2025

House Passage

Governor

Introduced Jan 16, 2025 Last action Mar 26, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → Senate Engrossed Version · 6 edits · Mar 13, 2025

MODERATE

This bill adds new exemptions to Arizona's transaction privilege and use tax, primarily expanding relief for aviation-related purchases, renewable energy credits, and environmental technology manufacturing. The changes also update definitions for cash equivalents to include electronic payment mechanisms and clarify tax treatment for certain government contracts and forest product harvesting operations.

Scope change

The bill expands the scope of tax exemptions to include new categories of tangible personal property and modifies existing exemptions to clarify their application to aviation, renewable energy, and environmental technology sectors.

SCOPE

Added new exemptions for aviation fuel sales and aircraft registration requirements, including provisions for general aviation maintenance and foreign government aircraft.

Added exemptions for renewable energy credits and units tracking energy from renewable resources.

Added exemptions for machinery and equipment used in harvesting, processing, or transporting qualifying forest products removed from qualifying projects.

Added exemptions for solar energy device sales and wireless telecommunications equipment used as inducements for service contracts.

DEFINITION

Expanded the definition of cash equivalents to include electronic codes, personal identification numbers, and digital payment mechanisms.

ELIGIBILITY

Modified motor vehicle sales exemptions to clarify tax treatment when purchaser's state has lower or no corresponding use tax.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 26, 2025

Lower · Passed

lower

Mar 13, 2025

Upper · Passed

PASSED

upper

Mar 6, 2025

Upper · Passed

DPA

upper

Feb 25, 2025

Upper · Passed

upper

Feb 17, 2025

Upper · Passed

upper

1 primary · 0 co-sponsors