REFERENCE TITLE: aircraft taxation; fair market value

State of Arizona

House of Representatives

Fifty-fifth Legislature

Second Regular Session

2022

HB 2646

Introduced by

Representative Grantham

AN ACT

amending section 28-8335, Arizona Revised Statutes; relating to aircraft registration and taxation.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 28-8335, Arizona Revised Statutes, is amended to read:

START_STATUTE28-8335. License tax; tax rate

A. An annual license tax is imposed on all aircraft based in this state and required to be registered pursuant to this article, unless an exemption for the aircraft is established pursuant to this article. The license tax is payable to the department on initial registration and annually on or before the last day of February.

B. Except as provided in sections 28-8336, through 28-8337, 28-8338, 28-8339, 28-8340 and 28-8341, the department shall determine and assess the license tax prescribed by subsection A of this section on the basis of one-half per cent percent of the average fair market value of the particular make, model and year of aircraft. The average fair market value:

1. may not have an annual percentage change that is more than the annual percentage change in the average consumer price index as published by the United States DEPARTMENT of labor, bureau of labor statistics.

2. In fiscal year 2021-2022, shall be benchmarked to what the average fair market value of the aircraft was in 2019.

C. The tax assessed under this subsection section shall not be less than twenty dollars at least $20 for a full year of registration. END_STATUTE

Sec. 2. Aircraft taxation; market value; department of transportation; registration credit

In fiscal year 2021-2022, if a person pays an aircraft's annual license tax before the effective date of this act, and the aircraft's average fair market value has an annual percentage change that is more than the annual percentage change in the average consumer price index as published by the United States department of labor, bureau of labor statistics, using 2019 as a benchmark to what the average fair market value of the aircraft was in 2019, the department of transportation shall offer the person a credit to be applied toward the aircraft registration fees in fiscal year 2022-2023.  The credit shall be the difference between the amount that the person paid based on the aircraft's actual average fair market value and the amount that the person would have paid based on the aircraft's consumer price index adjusted fair market value as described by section 28-8335, subsection B, Arizona Revised Statutes, as amended by this act.