Aviation or Aerospace Companies are eligible to receive any combination of the MRZ benefits offered – property reclassification or transaction privilege tax (TPT) exemption. An aviation or aerospace company need only apply once to be eligible for the property reclassification benefits. However the company will need to apply separately for each transaction privilege tax exemption.



If an aviation or aerospace company is planning major construction or renovation, it can apply for TPT exemption on eligible contracts. The TPT savings is passed to the company by the prime contractor through a reduced construction contract price.

  • To apply for the TPT exemption the company must complete an Application Form for TPT Exemption and submit it to ACA.
  • ACA will review the application package. If the company is eligible, ACA will issue a Letter of Eligibility and explain the next steps of the process.
  • Before starting work on the contract, the prime contractor must apply for a Letter of Qualification from the Arizona Department of Revenue. Once the prime contractor requests the Letter of Qualification from Revenue, the prime contractor must forward a copy of the request letter to ACA; then, work under the contract may begin.
  • Finally, within 30 days of completion of work under the contract the company must submit a Completion Report to ACA.


An aviation or aerospace company that owns or leases income-producing property at an MRZ is eligible for property reclassification on both real and personal property. The property will be reclassified from class one (18% assessment ratio) to class six (5% assessment ratio) on both primary and secondary taxes.

  • To apply for property reclassification the company must first complete an Application Form and enter into a Memorandum of Understanding (MOU) with ACA.
  • Then ACA will issue a Letter of Certification to the eligible company, explaining the steps to apply for reclassification.
  • On or before December 10th of each year, the company must request in writing that the County Assessor reclassify its property for the next valuation year.
  • The company must submit an Annual Report to ACA within 30 days of filing its Arizona tax return to maintain its eligibility.