ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

 

HB 2400: TPT; exemption; agricultural equipment

Sponsor: Representative Dunn, LD 13

Committee on Ways & Means

Overview

Creates a retail and personal property rental TPT exemption as well as a use tax exemption for used machinery and equipment, including off-highway vehicles, utilized for agricultural purposes.

History

Statute outlines that the TPT retail classification is comprised of the business of selling tangible personal property at retail, and that the TPT personal property rental classification is comprised of the business of leasing or renting tangible personal property. The tax base for these classifications is comprised of the gross proceeds of sales or income derived from the business. Current statute provides TPT exemptions in both classifications only for new machinery and equipment used for commercial agricultural purposes. (A.R.S. §§ 42-5061.B.14, 42-5071.B.2.b)

Current statute also provides use tax exemptions only for new machinery and equipment used for commercial agricultural purposes (A.R.S. § 42-5159.B.14).

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteCreates a TPT exemption for gross proceeds and income deriving from the sale of all machinery and equipment, including off-highway vehicles, utilized for commercial agricultural purposes. (Sec. 1, 2)

2.   Creates a TPT exemption for the gross proceeds and income deriving from the lease or rental of all machinery, including off-highway vehicles, utilized for commercial agricultural purposes, regardless of the rental or lease duration. (Sec. 3)

3.   Creates a use tax exemption for all machinery and equipment, including off-highway vehicles, utilized for commercial agricultural purposes. (Sec. 4)

4.   Defines off-highway vehicle. (Sec.1, 2, 4)

5.   Applies to taxable periods on or after the first day of the month following the general effective date. (Sec. 5)

6.   Contains a conditional enactment clause. (Sec. 6)

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10.                    HB 2400

11.  Initials VP/ES        Page 0 Ways & Means

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