A.R.S. 42-1310.09.C.5 provides an exemption from transaction privilege tax under the commercial lease classification for the lease of real property by a corporation to an affiliated corporation. General Provisions A.R.S. 42-1310.09.C.5 provides an exemption from transaction privilege tax under the commercial lease classification for the leasing of real property by a corporation to an affiliated corporation. A.R.S. 42-1310.09.C.5 provides that ownership and control are determined by reference to the voting shares of the corporation. A for-profit corporation will always have voting shares because it will always have stockholders with voting rights.
Shares of stock are evidence of an ownership interest in a for-profit corporation.
Shareholders of a for-profit corporation have the right to vote for the board of directors of the corporation and, upon liquidation, the right to participate pro rata in the distribution of the assets of the corporation. A.R.S. 42-1310.09.C.5 states that ownership and control are determined by reference to the voting shares of the corporation. However, A.R.S. 10-1026 prohibits nonprofit corporations from issuing stock. In addition, due to the requirements of the Internal Revenue Code, members of a nonprofit corporation may not share pro rata in the assets of the corporation upon liquidation. Therefore, members of a nonprofit corporation do not have an ownership interest in the assets of a nonprofit corporation.