AZ SB1636

Amends Arizona Revised Statutes sections 42-5151 and 42-5157 to clarify the treatment of motor vehicles removed from dealer inventory for use tax purposes.

Adds definition of "motor vehicles that are removed from inventory" as motor vehicles removed from a dealer's inventory that are not for sale.

Motor vehicles removed from inventory by dealers and used directly in their business are subject to monthly use tax at 1/39 of the vehicle's value if returned to active sales inventory within one year.

Service vehicles are not considered removed from inventory if continuously available for sale, and vehicles remaining or treated as new under state law are presumed continuously available for sale.

Applies to taxable periods beginning on or after the first day of the month following the general effective date.