Arizona Gov. Doug Ducey has signed a bill exempting crop dusters and other aircraft used by farms from state sales taxes.
Ducey approved House Bill 2133 without comment Wednesday.
Arizona Tax Research Association President Kevin McCarthy said farm equipment is generally exempted from state sales taxes, but there were concerns the Arizona Department of Revenue was going to reclassify crop dusters as aircraft, which can be subject to those levies.
The state legislation seeks to clarify the tax exemption for crop dusters and makes the exemption retroactive back to 1985.
McCarthy said if DOR had opted to tax crop dusters it could have resulted in big tax bills for farmers and agriculture-related businesses. Crop dusters are used to spray seeds, fertilizers and pesticides.
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