New Law Alert – Commercial Property Leases & Self-Rental

House Bill 2324 sponsored by Gilbert Representative Eddie Farnsworth will be enacted in September of 2013, with many municipalities enacting it as of July 1, 2013. The bill, which passed the Arizona State House AND Senate UNANIMOUSLY excepts certain commercial leases from Transaction Privilege Tax.  Additionally, the bill prohibits municipalities from taxing the transactions as well. The exemption applies to certain affiliated companies, businesses, or persons. Background: It is very common for a business owner that owns both the business and the land & building the business uses to utilize separate business entities to separate liabilities.  For example, a manufacturing company [...]