HB 2400
Initials VP/ES Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
House: WM DP 6-4-0-0
HB 2400: TPT; exemption; agricultural equipment
Sponsor: Representative Dunn, LD 13
Caucus & COW
Overview
Creates a retail and personal property rental TPT exemption as well as a use tax exemption for
used machinery and equipment, including off-highway vehicles, utilized for agricultural purposes.
History
Statute outlines that the TPT retail classification is comprised of the business of selling tangible
personal property at retail, and that the TPT personal property rental classification is comprised
of the business of leasing or renting tangible personal property. The tax base for these
classifications is comprised of the gross proceeds of sales or income derived from the business.
Current statute provides TPT exemptions in both classifications only for new machinery and
equipment used for commercial agricultural purposes. (A.R.S. §§ 42-5061.B.14, 42-5071.B.2.b)
Current statute also provides use tax exemptions only for new machinery and equipment used for
commercial agricultural purposes (A.R.S. § 42-5159.B.14).
Provisions
1. Creates a TPT exemption for gross proceeds and income deriving from the sale of all
machinery and equipment, including off-highway vehicles, utilized for commercial agricultural
purposes. (Sec. 1, 2)
2. Creates a TPT exemption for the gross proceeds and income deriving from the lease or rental
of all machinery, including off-highway vehicles, utilized for commercial agricultural purposes,
regardless of the rental or lease duration. (Sec. 3)
3. Creates a use tax exemption for all machinery and equipment, including off-highway vehicles,
utilized for commercial agricultural purposes. (Sec. 4)
4. Defines off-highway vehicle. (Sec.1, 2, 4)
5. Applies to taxable periods on or after the first day of the month following the general effective
date. (Sec. 5)
6. Contains a conditional enactment clause. (Sec. 6)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note