Arizona Revised Statutes Title 42. Taxation § 42-5071. Personal property rental classification; definitions

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 § 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 § 28-1461. For the purposes of this paragraph, “certified ignition interlock device” has the same meaning prescribed in § 28-1301.

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

10. Leasing or renting billboards that are designed, intended or used to advertise or inform and that are visible from any street, road or other highway.

1. Reimbursements by the lessee to the lessor of a motor vehicle for payments by the lessor of the applicable fees and taxes imposed by §§ 28-2003, 28-2352, 28-2402, 28-2481 and 28-5801, title 28, chapter 15, article 2  1 and article IX, section 11, Constitution of Arizona, to the extent such amounts are separately identified as such fees and taxes and are billed to the lessee.

2. Leases or rentals of tangible personal property that, if it had been purchased instead of leased or rented by the lessee, would have been exempt under:

3. Motor vehicle fuel and use fuel that are subject to a tax imposed under title 28, chapter 16, article 1,  2 sales of use fuel to a holder of a valid single trip use fuel tax permit issued under § 28-5739 and sales of aviation fuel that are subject to the tax imposed under § 28-8344.

4. Leasing or renting a motor vehicle subject to and on which the fee has been paid under title 28, chapter 16, article 4.  3

5. Amounts received by a motor vehicle dealer for the first month of a lease payment if the lease and the lease payment for the first month of the lease are transferred to a third-party leasing company.

1. “Cable operator” has the same meaning prescribed in § 9-505 and includes a video service provider.

2. “Peer-to-peer car sharing” has the same meaning prescribed in § 28-9601.

3. “Peer-to-peer car sharing program” has the same meaning prescribed in § 28-9601.

4. “Shared vehicle owner” has the same meaning prescribed in § 28-9601.

5. “Utility pole” means any wooden, metal or other pole used for utility purposes and the pole's appurtenances that are attached or authorized for attachment by the person controlling the pole.