The tax under this article, section 42-6206, subsection B and section 42-6209, subsection C do not apply with respect to:

Terms Used In Arizona Laws 42-6208

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Government lessor: means a city, town, county or county stadium district. See Arizona Laws 42-6201
  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • Internal revenue code: means the United States internal revenue code of 1986, as amended and in effect as of January 1, 2023, including those provisions that became effective during 2022 with the specific adoption of their retroactive effective dates but excluding all changes to the code enacted after January 1, 2023. See Arizona Laws 42-1001
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Prime lessee: means any person, partnership, corporation, company, limited liability company, joint venture or other organization or association that enters into a lease directly with a government lessor to develop or occupy for at least thirty consecutive days a government property improvement, regardless of whether the improvement is actually used by the prime lessee or by one or more sublessees. See Arizona Laws 42-6201
  • Property: includes both real and personal property. See Arizona Laws 1-215
  • United States: includes the District of Columbia and the territories. See Arizona Laws 1-215

1. Property that is used for a governmental activity.

2. Property that is used for public housing.

3. Easements and rights-of-way of railroads and gas, electric, water, pipeline and telephone utilities.

4. Interests in all or any part of a facility that is owned of record by a government lessor and used primarily for athletic, recreational, entertainment, artistic, cultural or convention activities if the interest is used for those activities or activities directly related and incidental to these uses including concession stands.

5. Property that is used for or in connection with aviation, including hangars, tie-downs, aircraft maintenance, sale of aviation related items, charter and rental activities, commercial aircraft terminal franchises, rental car operations, parking facilities and restaurants, stores and other services that are located in a terminal.

6. The use by a commercial airline of the runways and terminal facilities of state, city, town or county airports and public airports operating pursuant to sections 28-8423, 28-8424 and 28-8425.

7. Leases of property or interests in a transportation facility that is constructed or operated pursuant to Title 28, Chapter 22.

8. Interests in lands held in trust by this state pursuant to Title 37, Chapter 2, Article 1.

9. Interests in property held in trust for an Indian or an Indian tribe by the United States government.

10. Interests in property that is defined as "contractor-acquired property" or "government-furnished property" in the federal acquisition regulations, 48 C.F.R. § 45.101, and that is owned by the government and used to perform a government contract.

11. Property of a corporation that is organized by or at the direction of a county, city or town to develop, construct, improve, repair, replace or own any property, improvement, building or other facility to be used for public purposes that the county, city or town pledges to lease or lease-purchase with county or municipal special or general revenues.

12. Interests in property used by a chamber of commerce recognized under section 501(c)(6) of the United States internal revenue code if the property is used predominately for those federal tax exempt purposes.

13. Interests in property used by organizations that are exempt from taxation under section 501(c)(3) of the internal revenue code.

14. Interests in parking garages or decks if the parking garages or decks are owned and operated by a government lessor or operated on behalf of a government lessor, by an entity other than the prime lessee, pursuant to a management agreement with the government lessor.

15. Residential rentals if the prime lessee is the occupant.

 

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