HB 2082
Initials VP/DD Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
House: WM DP 5-4-0-0
HB 2082: TPT; exemption; wastewater; pipes
Sponsor: Representative Griffin, LD 19
House Engrossed
Overview
Creates a transaction privilege tax and use tax deduction for wastewater pipes and valves
four inches in diameter or larger.
History
Pipes and valves four inches in diameter or larger are nontaxable if they are used to transport
oil, natural gas, artificial gas, water or coal slurry. The deduction also includes compressor
units, regulators, machinery and equipment, fittings, seals and any parts used in operating
the pipes or valves (A.R.S. §§ 42-5061; 42-5159).
The Arizona Department of Revenue (DOR) ruled that pipes used to transport sewage are
not included in the deduction. Any water used in the transportation of sewage is considered
a medium of transportation and is not used for the purpose of transporting water. DOR in its
ruling states that if the Legislature intended for sewage to be considered as part of the
deduction, they would have created a specific exemption as they did with coal slurries, which
use water as a medium of transportation (DOR TPR 02-2).
Provisions
1. Adds wastewater as a qualifying use to the pipes or valves four inches in diameter or
larger to the retail and use tax deduction. (Sec. 1 and 2)
2. Contains an applicability clause. (Sec. 3)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note