SB1406 - 551R

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

Section 1. Section 28-8323, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8323. Government and dealer aircraft registration

A. This state, any political subdivision of this state or the civil air patrol shall register aircraft it owns and operates exclusively in the public service, but a registration fee or license tax shall not be assessed on this aircraft. If this state, any political subdivision of this state or the civil air patrol does not register the aircraft as provided in section 28‑8322, this state, the political subdivision or the civil air patrol shall pay the department a penalty fee of twenty‑five dollars $25 for the first month and five dollars $5 for each succeeding month until it makes application for registration on the form provided by the department.

B. An aircraft dealer licensed by the department pursuant to section 28‑8383 shall register aircraft the dealer owns and holds for the purposes of sale. If the dealer fails to register the aircraft with the department as an aircraft being held for purposes of sale on a form provided by the department within ten days after the aircraft is purchased by the dealer, the department shall assess the registration fee prescribed in section 28‑8325 and the license tax prescribed in section 28‑8335 on the aircraft. END_STATUTE

Sec. 2. Repeal

Section 28-8324, Arizona Revised Statutes, is repealed.

Sec. 3. Section 28-8325, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8325. Registration; certificate; decal; duplicate

A. On payment of a registration fee of five dollars, the license tax and the penalty, if any, The department shall issue a certificate and license decal to an applicant who submits an aircraft registration application in a manner prescribed by the department.

B. The license decal shall be displayed on the aircraft at all times in the manner prescribed by the department.

C. On satisfactory proof of the loss or destruction of the license decal, the department shall issue a duplicate of the license decal to the owner on payment of a four dollar $4 fee. END_STATUTE

Sec. 4. Repeal

Section 28-8327, Arizona Revised Statutes, is repealed.

Sec. 5. Section 28-8328, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8328. Failure to register; assessment procedure

If an aircraft is not registered within the time periods prescribed in this article, the director shall assess registration fees, license taxes and penalties due as follows:

1. The director shall give written notice of the assessment to the owner of the aircraft by either mailing the notice in a postage prepaid sealed envelope addressed to the owner of the aircraft at the owner's address as it appears in the records of the department or by delivery in person. Notice is deemed to be complete at the time of mailing or at the time of personal delivery.

2. The assessment is final thirty days after notice is deemed to be complete, unless, before that time, the department receives a written objection to the assessment and a request for a hearing from the owner. If the department receives a request for a hearing, the hearing shall be conducted as provided in section 28‑8244. END_STATUTE

Sec. 6. Section 28-8329, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8329. Late registration; penalty; abatement

A. If an aircraft required to be registered under this article is not registered within sixty days after its entry into this state and renewed annually on or before the last day of February, a penalty of twenty‑five dollars $25 for the first month and five dollars $5 for each succeeding month of delinquency shall be added to the registration fee and collected imposed unless an exemption for the aircraft is established pursuant to this article.

B. Registration of the aircraft for the year immediately preceding the year for which the application for registration is made is prima facie evidence that the aircraft has been based in this state during the year for which the application for registration is made.

C. The director may abate all or a part of any penalty assessed for failure to register an aircraft within the time periods prescribed in this article if the director believes that reasonable cause exists for the failure to register the aircraft as provided by this article. For the purposes of this subsection, "reasonable cause" means a reasonable basis for the person responsible for registration of the aircraft to believe that the aircraft was exempt from registration requirements. END_STATUTE

Sec. 7. Section 28-8330, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8330. Lien

A. The license tax, registration fee and A penalty constitute constitutes a lien on the aircraft on which they are it is due from the due date.

B. The lien has priority over any other lien or encumbrance on the aircraft, except for a lien of other state taxes that has priority by law.

C. The lien continues until the license taxes, registration fees, penalties and lien recording fees are paid.

D. The department shall issue a release of the lien on receipt of full payment of the registration fees, license taxes, penalties and lien recording fees secured by the lien. The release shall be a document in a form as specified in section 11‑480.

E. If requested by the department, the sheriff of the county in which the aircraft is found or any other peace officer shall collect the license tax, registration fee, penalty and lien recording fee by seizure of the aircraft from the person in possession of the aircraft, if any, and by sale as provided in section 28‑8331. END_STATUTE

Sec. 8. Section 28-8331, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8331. Seized aircraft sale

A. If an aircraft has been seized under this article and held for a period of sixty days and license taxes, registration fees, penalties, lien recording fees and costs and expenses of seizure are not paid in full, the sheriff of the county in which the aircraft is found shall sell the aircraft when requested by the department.

B. The sale of an aircraft under this section shall be at public auction after notice of the sale is sent by the department by certified mail at least five but not more than twenty days before the sale directed to the last known address of the owner of the aircraft, if the owner is known. If the owner is unknown, the department shall give notice by publication in a newspaper of general circulation in the county in which the aircraft was seized. If notice is published in a weekly newspaper, the publication shall be made once each week for two consecutive weeks, or if published in a daily newspaper, six consecutive times, the last publication to be at least five but not more than ten days before the date of the sale.

C. Within five days after receipt of the proceeds of the sale, the sheriff shall transmit the entire proceeds to the department. After payment by the department of the license taxes, registration fees, penalties, lien recording fees and costs and expenses of the seizure and sale, the department shall pay the remaining proceeds of the sale to the owner from whom the aircraft was seized, if the owner is known. If the owner is unknown, the department shall deposit, pursuant to sections 35‑146 and 35‑147, the remaining proceeds in the state aviation fund.

D. The department may issue a certificate of release of lien on payment of the license taxes, registration fees, penalties, lien recording fees and costs and expenses of seizure and sale. END_STATUTE

Sec. 9. Section 28-8332, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8332. Registration; transfer or assignment

A. If a person who registered an aircraft under this article transfers or assigns title to or interest in the aircraft, the registration of the aircraft expires.

B. Within sixty days after the transfer or assignment, the person to whom the transfer or assignment is made shall register the aircraft in that person's name with the department and pay the regular registration fee, unless the aircraft is exempt from registration pursuant to section 28‑8322.

C. If an aircraft is not registered within sixty days after the transfer or assignment as required by this section, the department shall collect an annual penalty of twenty‑five dollars $25 for the first month and five dollars $5 for each succeeding month of delinquency in addition to the registration fee. END_STATUTE

Sec. 10. Repeal

Sections 28-8335, 28-8336, 28-8337, 28-8338, 28-8339, 28-8340, 28‑8341 and 28‑8342, Arizona Revised Statutes, are repealed.

Sec. 11. Section 28-8343, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8343. Aircraft total loss; violation; classification

A. If a company that insures an aircraft determines the aircraft is a total loss, the insurer shall provide to the department an affidavit stating that a total loss occurred.

B. If the aircraft is a total loss, is transferred to another person, business or organization and is not insured, the person, business or organization shall provide an affidavit to the department stating the aircraft to be a total loss.

C. On receipt of the affidavit, the director shall:

1. Determine the amount of registration fee and license tax under this article.

2. Reduce the amount of the registration fee and license tax by one‑twelfth for each full month of the registration period that has not yet expired.

3. Allow a tax credit to the owner for the appropriate amount of taxes previously paid on verified written application by the owner of the aircraft at the time the total loss occurred. The owner may use the tax credit on the next or several succeeding aircraft registration fees or license taxes that may be owed by the owner.

D. C. A person who violates this section is guilty of a class 2 misdemeanor. END_STATUTE

Sec. 12. Repeal

Section 28-8345, Arizona Revised Statutes, is repealed.

Sec. 13. Section 28-8347, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8347. Civil penalties

The director may impose a civil penalty against a person required to register an aircraft under this article as follows:

1. In an amount of not more than five hundred dollars $500 against a person who wilfully makes or gives under oath or affirmation a false statement regarding aircraft owned by, leased by or under the control of the person.

2. By assessment of twice the value of the license tax imposed on the aircraft for that year against a person who wilfully conceals, removes, transfers or misrepresents the ownership of the aircraft by the owner or agent of the owner with the purpose of evading taxation.

3. 2. In an amount of not more than two hundred dollars $200 against a person who either:

(a) Gives the registrar or deputy registrar a false name.

(b) Fails or refuses to give the person's name or a list of aircraft owned by, leased by or under the control of the person.

4. 3. If a statement is required to be made for imposing an assessment or tax, in an amount of not more than two hundred dollars $200 against a person who wilfully makes an oral or written false statement that is not made under oath. END_STATUTE

Sec. 14. 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. 15. 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