AZ SB1309

Establishes a new Class Six property classification for real and personal property used specifically and solely to manufacture zero-sulfur gasoline from natural gas from December 31, 2020 through December 31, 2051, valued at full cash value.

Limits the zero-sulfur gasoline property classification to facilities that process and store zero-sulfur gasoline and liquid petroleum gases made from natural gas feedstock obtained from off-site sources, disqualifying any unrelated commercial or industrial use.

Defines "zero-sulfur gasoline" as gasoline and natural gas liquids made from natural gas containing less than one part per million of sulfur annually at the facility gate, excluding sulfur in compliant fuel additives.

Applies depreciation schedules to personal property in the new Class Six paragraph 9 classification, using 25% of scheduled depreciated value in year one, increasing to full scheduled value by year six and beyond.

Applies the bill retroactively to tax years beginning from and after December 31, 2020.