Arizona HB 2259: TPT; distribution; HURF

Bill Text

HB2259 - 572R - I Ver 

 REFERENCE TITLE: TPT; distribution; HURF

 State of Arizona

 House of Representatives

 Fifty-seventh Legislature

 Second Regular Session

 2026

 HB 2259

 Introduced by 

 Representative 
 Biasiucci

AN 
ACT

amending section 28-6501, Arizona 
Revised Statutes; amending title 42, chapter 5, article 1, Arizona Revised 
Statutes, by adding section 42-5032.04; amending section 42-5071, 
Arizona Revised Statutes; relating to transaction privilege tax.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-6501, Arizona Revised 
Statutes, is amended to read:

START_STATUTE28-6501. Definition of highway user revenues

In this article, unless the context 
otherwise requires or except as otherwise provided by statute, "highway 
user revenues" means all monies received in this state from licenses, 
taxes, penalties, interest and fees authorized by the following:

1. Chapters 2, 7, 8 and 
15 of this title, except for:

(a) The special plate 
administration fees prescribed in sections 28-2404, 28-2407, 28-2412 
through 28-2470.39 and 28-2514. 

(b) The donations 
prescribed in sections 28-2404, 28-2407, 28-2412 through 28-2415, 
28-2417 through 28-2470.39, 28-2473, 28-2474, 28-2475 and 28-2476.

2. Section 28-1177.

3. Chapters 10 and 11 of 
this title.

4. Chapter 16, articles 
1, 2 and 4 of this title, except as provided in sections 28-5926 and 28-5927.

5. Section 
42-5032.04. END_STATUTE

Sec. 2. Title 42, chapter 5, article 1, Arizona 
Revised Statutes, is amended by adding section 42-5032.04, to read:

START_STATUTE42-5032.04. Distribution of revenue to Arizona highway user revenue fund

Each month the state treasurer, on instruction 
from the department, shall deposit, pursuant to sections 35-146 and 35-147, 
ten percent of the amount of state transaction privilege tax revenues collected 
under section 42-5010, subsection A that are not designated as 
distribution base from persons engaging or continuing in this state in the 
business of leasing or renting a customer-facing electric vEHICLE 
charging station that is aCCESSIBLE to the general public under the personal 
property rental classification prescribed by section 42-5071 in the 
Arizona Highway user revenue fund established by section 28-6533 for 
distribution pursuant to title 28, chapter 18, article 2. END_STATUTE

Sec. 3. Section 42-5071, Arizona Revised 
Statutes, is amended to read:

START_STATUTE42-5071. Personal property rental classification; definitions

A. The personal property rental classification is 
comprised of the business of leasing or renting tangible personal property for 
a consideration and includes peer-to-peer car sharing. The tax does 
not apply to:

1. Leasing or renting films, tapes or slides used by 
theaters or movies, which are engaged in business under the amusement 
classification, or used by television stations or radio stations.

2. Activities engaged in by the Arizona exposition 
and state fair board or county fair commissions in connection with events 
sponsored by such entities.

3. Leasing or renting tangible personal property by 
a parent business entity to a subsidiary business entity or by a subsidiary 
business entity to another subsidiary of the same parent business entity if 
taxes were paid under this chapter on the gross proceeds or gross income 
accruing from the initial sale of the tangible personal property.� For the 
purposes of this paragraph, "subsidiary" means a business entity of 
which at least eighty percent of the voting shares are owned by the parent 
business entity.

4. Operating coin-operated washing, drying and 
dry cleaning machines or coin-operated car washing machines at 
establishments for the use of such machines.

5. Leasing or renting tangible personal property for 
incorporation into or comprising any part of a qualified environmental 
technology facility as described in section 41-1514.02. This 
paragraph shall apply for ten full consecutive calendar or fiscal years 
following the initial lease or rental by each qualified environmental 
technology manufacturer, producer or processor.

6. Leasing or renting aircraft, flight simulators or 
similar training equipment to students or staff by nonprofit, accredited 
educational institutions that offer associate or baccalaureate degrees in 
aviation or aerospace related fields.

7. Leasing or renting photographs, transparencies or 
other creative works used by this state on internet websites, in magazines or 
in other publications that encourage tourism.

8. Leasing or renting certified ignition interlock 
devices installed pursuant to the requirements prescribed by section 28-1461.� 
For the purposes of this paragraph, "certified ignition interlock 
device" has the same meaning prescribed in section 28-1301.

9. The leasing or renting of space to make 
attachments to utility poles, as follows:

(a) By a person that is engaged in business under 
sectio