ARIZONA STATE SENATE
Phoenix, Arizona
FINAL
REVISED
children; mental health
service
(NOW: military reuse zone)
Extends the transaction privilege taxation (TPT) deduction for contractors working in military reuse zones that have been renewed.
In 1992, the Legislature established the Military Reuse Zone Program to lessen the impact of military base closures. The program provides economic incentives for aviation and aerospace businesses that create new jobs and make capital investments within a designated military reuse zone in Arizona.
In 1996, Governor Symington signed an executive order designating Williams Gateway Airport as the first military reuse zone in Arizona. The zone was designated for a five-year period. Under this statute, the zone may be renewed by the governor for one term of five years. Thereafter, the Legislature and the Governor, by joint resolution, may renew the military reuse zone for additional five-year terms.
However, the corresponding TPT exemption applicable to the military reuse zone was not also amended to recognize the five-year renewal provision. S.B. 1041 extends the TPT deduction for contractors working in military reuse zones that have been renewed.
According to an informal Department of Revenue estimate, the fiscal impact of this bill will be minimal to none.
1. Exempts, from the prime contracting classification of transaction privilege taxation, gross sales or income from contracting performed within five years after a military reuse zone has been renewed.
2. Blends conflicting enactments.
3. Makes conforming changes.
4. Makes a technical change.
Senate Action House Action
JUD 4/18/01 W/D
APPROP 4/18/01 DPA/SE 15-0-0-1
3rd Read 4/25/01 57-0-3-0
Signed by Governor 5/7/01
Chapter 359
Prepared by Senate Staff
May 31, 2001