AZ SB1516

Exempts "always hangared aircraft" (aircraft stored in a hangar and never flown) from Arizona aircraft registration requirements with the Department of Transportation.

Requires the Arizona Commerce Authority to verify capital investments in aviation maintenance facilities, with investors filing sworn certifications including name, address, investment date, and facility information.

Expands the transaction privilege tax (TPT) retail exemption for aircraft, navigational instruments, and related equipment to include sales to persons maintaining, repairing, or overhauling general aviation aircraft, effective after $150 million in verified capital investments in aviation maintenance facilities.

Expands the TPT exemption for machinery, tools, equipment, and supplies used in aircraft repair/maintenance to cover all aircraft work (not just for certificated carriers), effective after the $150 million investment threshold is reached.

Establishes a notification requirement where the Commerce Authority must inform the Department of Revenue when the $150 million aggregate capital investment threshold in aviation maintenance facilities has been verified.