Update to State Jet Fuel Excise Tax Exemption in State of Arizona

The Arizona Department of Revenue has confirmed a statutory change to the Jet Fuel Use tax is now in effect for the August reporting period that is filed in September.

In accordance with House Bill 2064, Arizona Revised Statutes Section 42-6014, any jet fuel sale or purchase in excess of 10 million gallons is no longer subject to the Jet Fuel Excise Tax or Jet Fuel Use tax in Arizona.

Thirteen Arizona cities that had imposed the tax will now be uniform with existing state and county exemptions for jet fuel sales in excess of 10 million gallons. They are Bullhead City, Chandler, Chino Valley, Gila Bend, Glendale, Goodyear, Lake Havasu City, Mesa, Phoenix, Prescott, Scottsdale, Sierra Vista and Winslow.

Companies are to use exemption certificate Form 5008 to claim this exemption. The correct deduction code to use when reporting this deduction on the TPT-2, Schedule A, is 780. Please see Transaction Privilege Tax ruling (TPR) 16-2 for more details.

On January 1, 2015, counties conformed to an exemption that any amount over 10 million gallons of jet fuel not be subject to the Jet Fuel Excise Tax. Then, on August 9th, 2017, A.R.S. 42-6014 applied the exemption to cities.

Taxpayers with questions about the change should contact ADOR’s Customer Care Center at: (602) 255-3381 or toll-free: (800) 352-4090.