HB 2189 Summary

• Adds aviation-related exemption to transaction privilege tax (TPT) and use tax for aircraft sales where operational control is transferred to qualified operators, with a recapture provision if less than 50% of flight hours meet transfer requirements within the recapture period.

• Requires certificate documentation from purchasers to verify operational control transfer eligibility; if operational control requirement is not met, purchaser is liable for back taxes, penalties, and interest.

• Applies recapture period ending on the later of the aircraft's full depreciation date for federal income tax purposes or five years after operational control transfer, with reduced penalties if 40-50% of flight hours meet requirements.

• Modifies sections 42-5009, 42-5061, 42-5071, and 42-5159 of Arizona Revised Statutes to incorporate aviation exemption provisions.

• Effective for taxable periods beginning on or after the first day of the month following general effective date.