The Car and Truck Fleet and Leasing Management Magazine

Arizona Approves New Lease Tax Treatment

May 17, 2004

PHOENIX – Governor Janet Napolitano signed into law H.B. 2459 relating to tax treatment of leases sold to a third party, according to the American Automotive Leasing Association. Previously, Arizona law required taxes to be collected on the initial lease payment upon the consummation of the lease. This law exempts the first month of a lease payment at the inception of a lease. The lease and the lease payment for the first month of the lease are transferred to a third-party leasing company, and the tax is paid at that time.
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