Wed, Feb 03, 2016
Bills Had Been Vetoed Last Year By Governor Ducey
A Republican lawmaker in Arizona has reintroduced legislation to exempt crop dusters and charter aircraft operators from sales taxes in the state.
Rep. T.J. Shope (pictured) had introduced a similar bill last year that was vetoed by Governor Doug Ducey, who said a retroactivity clause in the legislation could have led to a wave of requests for refunds from the state. This time around, Shope says he's worked with the governor in preparing the legislation. The bill is designed to counter decisions by the Arizona Department of Revenue that such taxes are owed.
The Associated Press reports that the bill covering charter aircraft was introduced last year after the state demanded nearly $700,000 plus interest from Papillon Airways, a company offering helicopter tours of the Grand Canyon, as well as companies that had leased aircraft to the tour operator. Papillon Airways had lost an appeal at the Arizona Court of Appeals, and the state said it owed transaction taxes for lease income, as well as engines and other equipment purchased between 2003 and 2006. The air tour bill was combined with one exempting crop dusting aircraft last year. While Gov. Ducey vetoed the bill, he ordered the state to not collect the taxes so that the legislature could fix the bill this year.
The bills are being considered separately this year.
House Bill 2133 is the crop dusting bill. Shope says there is a $10,000 cap on refunds for operators. House Bill 2533 will deal with the air tour operators, and he is still working out details on a refund cap for that bill.
Shope said that both bills are designed to turn back decisions by the Department of Revenue that reversed long-standing tax policies in the state.
(Image from YouTube)
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