HB 2634 Summary

• Transfers military reuse zone statutes from Title 41, Chapter 10, Article 3 to Title 42, Chapter 1, Article 7 of Arizona Revised Statutes, renumbering sections 41-1531 through 41-1533 as sections 42-1301 through 42-1303.

• Changes administration of military reuse zones from the Arizona Commerce Authority to the Department of Revenue for monitoring implementation, assisting employers, submitting annual reports on tax revenue foregone, and adopting necessary rules.

• Allows prime contractors in military reuse zones to claim exemptions from transaction privilege tax on contracts for modification, construction, or improvements for aviation, aerospace services, or manufacturing within active military reuse zones.

• Permits property in military reuse zones devoted to aviation or aerospace services or manufacturing to be classified as class six property for property tax purposes, limited to a five-year period with potential renewal based on eligibility.

• Updates statutory references in sections 42-5075 and 42-12006 to reflect the relocation of military reuse zone provisions from Title 41 to Title 42.