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HB2259 - 572R - I Ver
REFERENCE TITLE:
TPT; distribution; HURF
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 2259
Introduced by
Representative
Biasiucci
AN
ACT
amending section 28-6501, Arizona
Revised Statutes; amending title 42, chapter 5, article 1, Arizona Revised
Statutes, by adding section 42-5032.04; amending section 42-5071,
Arizona Revised Statutes; relating to transaction privilege tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 28-6501, Arizona Revised
Statutes, is amended to read:
START_STATUTE
28-6501.
Definition of highway user revenues
In this article, unless the context
otherwise requires or except as otherwise provided by statute, "highway
user revenues" means all monies received in this state from licenses,
taxes, penalties, interest and fees authorized by the following:
1. Chapters 2, 7, 8 and
15 of this title, except for:
(a) The special plate
administration fees prescribed in sections 28-2404, 28-2407, 28-2412
through 28-2470.39 and 28-2514.
(b) The donations
prescribed in sections 28-2404, 28-2407, 28-2412 through 28-2415,
28-2417 through 28-2470.39, 28-2473, 28-2474,
28-2475 and 28-2476.
2. Section 28-1177.
3. Chapters 10 and 11 of
this title.
4. Chapter 16, articles
1, 2 and 4 of this title, except as provided in sections 28-5926 and 28-5927.
5. Section
42-5032.04.
END_STATUTE
Sec. 2. Title 42, chapter 5, article 1, Arizona
Revised Statutes, is amended by adding section 42-5032.04, to read:
START_STATUTE
42-5032.04.
Distribution of revenue to Arizona highway user revenue fund
Each month the state treasurer, on instruction
from the department, shall deposit, pursuant to sections 35-146 and 35-147,
ten percent of the amount of state transaction privilege tax revenues collected
under section 42-5010, subsection A that are not designated as
distribution base from persons engaging or continuing in this state in the
business of leasing or renting a customer-facing electric vEHICLE
charging station that is aCCESSIBLE to the general public under the personal
property rental classification prescribed by section 42-5071 in the
Arizona Highway user revenue fund established by section 28-6533 for
distribution pursuant to title 28, chapter 18, article 2.
END_STATUTE
Sec. 3. Section 42-5071, Arizona Revised
Statutes, is amended to read:
START_STATUTE
42-5071.
Personal property rental classification; definitions
A. The personal property rental classification is
comprised of the business of leasing or renting tangible personal property for
a consideration and includes peer-to-peer car sharing. The tax does
not apply to:
1. Leasing or renting films, tapes or slides used by
theaters or movies, which are engaged in business under the amusement
classification, or used by television stations or radio stations.
2. Activities engaged in by the Arizona exposition
and state fair board or county fair commissions in connection with events
sponsored by such entities.
3. Leasing or renting tangible personal property by
a parent business entity to a subsidiary business entity or by a subsidiary
business entity to another subsidiary of the same parent business entity if
taxes were paid under this chapter on the gross proceeds or gross income
accruing from the initial sale of the tangible personal property.� For the
purposes of this paragraph, "subsidiary" means a business entity of
which at least eighty percent of the voting shares are owned by the parent
business entity.
4. Operating coin-operated washing, drying and
dry cleaning machines or coin-operated car washing machines at
establishments for the use of such machines.
5. Leasing or renting tangible personal property for
incorporation into or comprising any part of a qualified environmental
technology facility as described in section 41-1514.02. This
paragraph shall apply for ten full consecutive calendar or fiscal years
following the initial lease or rental by each qualified environmental
technology manufacturer, producer or processor.
6. Leasing or renting aircraft, flight simulators or
similar training equipment to students or staff by nonprofit, accredited
educational institutions that offer associate or baccalaureate degrees in
aviation or aerospace related fields.
7. Leasing or renting photographs, transparencies or
other creative works used by this state on internet websites, in magazines or
in other publications that encourage tourism.
8. Leasing or renting certified ignition interlock
devices installed pursuant to the requirements prescribed by section 28-1461.�
For the purposes of this paragraph, "certified ignition interlock
device" has the same meaning prescribed in section 28-1301.
9. The leasing or renting of space to make
attachments to utility poles, as follows:
(a) By a person that is engaged in business under
section 42-5063 or 42-5064 or that is a cable operator.
(b) To a person that is engaged in business under
section 42-5063 or 42-5064 or that is a cable operator.
10. Leasing or renting billboards that are designed,
intended or used to advertise or inform and that are visible from any street,
road or other highway.
B. The tax base for the personal property rental
classification is the gross proceeds of sales or gross income derived from the
business, but the gross proceeds of sales or gross income derived from the
following shall be deducted from the tax base:
1. Reimbursements by the lessee to the lessor of a
motor vehicle for payments by the lessor of the applicable fees and taxes
imposed by sections 28-2003, 28-2352, 28-2402, 28-2481
and 28-5801, title 28, chapter 15, article 2 and article IX, section 11,
Constitution of Arizona, to the extent such amounts are separately identified
as such fees and taxes and are billed to the lessee.
2. Leases or rentals of tangible personal property
that, if it had been purchased instead of leased or rented by the lessee, would
have been exempt under:
(a) Section 42-5061, subsection A, paragraph
8, 9, 12, 13, 25, 29, 49 or 53.
(b) Section 42-5061, subsection B.
(c) Section 42-5061, subsection I, paragraph
1.
(d) Section 42-5061, subsection M.
3. Motor vehicle fuel and use fuel that are subject
to a tax imposed under title 28, chapter 16, article 1, sales of use fuel to a
holder of a valid single trip use fuel tax permit issued under section 28-5739
and sales of aviation fuel that are subject to the tax imposed under section 28-8344.
4. Leasing or renting
a motor vehicle subject to and on which the fee has been paid under title 28,
chapter 16, article 4.
5. Amounts received by a motor vehicle dealer for
the first month of a lease payment if the lease and the lease payment for the
first month of the lease are transferred to a third-party leasing
company.
C. Sales of tangible personal property to be leased
or rented to a person engaged in a business classified under the personal
property rental classification are deemed to be resale sales.
D. In computing the tax base, the gross proceeds of
sales or gross income from the lease or rental of a motor vehicle does not
include any amount attributable to the car rental surcharge under section 5-839,
28-5810 or 48-4234.
E. Until December 31, 1988, leasing or renting
animals for recreational purposes is exempt from the tax imposed by this
section. Beginning January 1, 1989, the gross proceeds or gross income from
leasing or renting animals for recreational purposes is subject to taxation
under this section. Tax liabilities, penalties and interest paid for
taxable periods before January 1, 1989 shall not be refunded unless the
taxpayer requesting the refund provides proof satisfactory to the department
that the monies paid as taxes will be returned to the customer.
F. The tax base of the personal property rental
classification does not include the gross proceeds or gross income received by
a shared vehicle owner from a peer-to-peer car sharing program pursuant to
section 42-5009, subsection R.
G. For
the purposes of section 42-5032.04, the department shall separately
account for revenues collected under the personal property rental
classification from a person engaging or continuing in this state in the
business of leasing or renting a customer-facing electric vEHICLE
charging station that is aCCESSIBLE to the general public.
G.
H.
For
the purposes of this section:
1. "Cable operator" has the same meaning
prescribed in section 9-505 and includes a video service provider.
2. "Peer-to-peer car sharing"
has the same meaning prescribed in section 28-9601.
3. "Peer-to-peer car sharing
program" has the same meaning prescribed in section 28-9601.
4. "Shared vehicle owner" has the same
meaning prescribed in section 28-9601.
5. "Utility pole" means any wooden, metal
or other pole used for utility purposes and the pole's appurtenances that are
attached or authorized for attachment by the person controlling the pole.
END_STATUTE
Sec. 4.
Applicability
This act applies to taxable periods
beginning on or after the first day of the month following the general
effective date.