Arizona – Effective Dates for the Commercial Lease Tax Exemption

SALT Report 2726 – The Arizona Department of Revenue issued a notice regarding the effective date for the new transaction privilege tax exemption for commercial leases of real property between affiliated companies, businesses, persons, or reciprocal insurers.  At the city level the exemption was effective July 1, 2013.   However at the state and county level the exemption is not effective until September 13, 2013.

Therefore, cities are no longer imposing a transaction privilege tax on leases as required by House Bill 2324.  But, the tax will be imposed at the state and county level until their effective date.

For Further Information

Arizona Department of Revenue – News Release, Commercial Lease Exemption

Arizona State Legislature – House Bill 2324