Effective September 13, 2013, H.B. 2324
provides that income from real property leases between two businesses with at least 80% common ownership is exempt from county privilege and municipal transaction privilege taxes. The new law expands the existing county and municipal exemption to affiliated companies, businesses, and persons
. Arizona taxpayers, particularly REITs, with a significant amount of intercompany leases involving non-corporate entities should be aware that income from such leases may be exempt from these taxes.