AZ Const., Article IX, Section 16

Commencing January 1, 1967, all watercraft registered for operation in Arizona, excluding watercraft owned and operated for any commercial purpose, is exempt from ad valorem property taxes. Watercraft exempt from ad valorem property taxes shall be subject to or exempt from a license tax, as may be prescribed by law. “Watercraft”, as used in this section, shall be defined as provided by law. Economic estimates commission; appropriation limitation; powers and duties of commission