ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session
	Senate: FIN DPA 8-2-0-0 | 3rd Read 18-10-2-0 House: WM DP 6-3-0-1

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SB 1372: TPT; exemptions; motor vehicles; nonresidents

Sponsor: Senator Pace, LD  25

Caucus & COW

Overview

Exempts the gross proceeds of sales or gross income derived from the sale of vehicles, trailers or semitrailers to a nonresident for use outside of the state from Transaction Privilege Tax (TPT) and municipal tax. Outlines the qualifications for an eligible vehicle, trailer or semitrailer.

History

The TPT retail classification is comprised of the business of selling tangible personal property at retail. The tax base for the retail classification is the gross proceeds of sales or gross income derived from these businesses. Currently, there are two TPT exemptions for:

1) Sales of motor vehicles to nonresidents of the state for use outside of this state if the motor vehicle dealer ships or delivers the motor vehicle to a destination outside of the state; and

2) Sales of motor vehicles to nonresidents of the state for use outside of the state if the motor vehicle is sold at auction and is shipped or delivered to a destination outside of the state (A.R.S. § 42-5061.A.14, 44).

A municipality may levy TPT on the gross proceeds of sales or gross income deriving from the sale of a motor vehicle to a nonresident of the state if:

1) Their state of residence does not allow a use tax exemption; and

2) They have secured a special ninety-day nonresident registration permit.

Municipalities may not levy this TPT if the nonresident takes possession of the vehicle outside of the state (A.R.S. § 42-6017).

Provisions

1. Exempts from TPT the gross proceeds of sales or gross income derived from the sale of a vehicle, trailer or semitrailer to a nonresident for use outside of the state, so long as the vehicle, trailer or semitrailer:

a) Has a gross weight of over 10,000 pounds;

b) Is used or maintained to transport property in the furtherance of interstate commerce; and

c) Meets statute's definition of a commercial motor vehicle. (Sec. 2, 3)

2. Exempts from municipal tax the sale of a vehicle, trailer or semitrailer to nonresidents for use outside of the state, so long as the vehicle, trailer or semitrailer:

a) Has a gross weight of over 10,000 pounds;

b) Is used or maintained to transport property in the furtherance of interstate commerce; and

c) Meets the statutory definition of a commercial motor vehicle. (Sec. 4, 5)

3. Applies to taxable periods beginning on or after the first day of the month following the general effective date. (Sec. 6)

4. Contains a conditional enactment clause. (Sec. 7)

5. Makes technical and conforming changes (Sec. 1, 2, 3, 4, 5)

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                  SB 1372

Initials VP/ES        Page 0 Caucus & COW

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