ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: WM DP 5-3-0-2 | 3rd Read: 41-17-1-1

HB 2646: aircraft taxation; fair market value

Sponsor: Representative Grantham, LD 12

House Engrossed

Overview

Establishes that the Fair Market Value (FMV) of an aircraft may not have an annual percentage change greater than the annual percentage change in the average Consumer Price Index (CPI) and establishes the benchmark FMV for aircrafts.

History

Aircraft license tax is a 0.5% tax imposed on the fair market value aircrafts based and registered in the state. The Arizona Department of Transportation assesses the FMV of aircrafts subject to this tax each year. Currently, no limit exists on the percent amount that FMV for an aircraft can change annually (A.R.S. § 28-8335).

Provisions

1. States that the average FMV of an aircraft cannot have an annual percentage change greater than the annual percentage change in the average CPI. (Sec. 1)

2. States that for FY 2022, the average fair market value must be benchmarked at the FMV of the aircraft in 2019. (Sec. 1)

3. Allows individuals who pay aircraft license tax in FY 2022, before the general effective date of this bill, to qualify for a tax credit in FY 2023 if the tax paid was greater than what would have been paid when using the calculation in Provisions one and two. (Sec. 1)

4. Makes technical changes. (Sec. 1)

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8. HB 2646

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