A.R.S. § 42-6209 — Arizona Code / Title 42 / Chapter 6 / Article 5 / Section 6209
42-6209 Abatement of tax for government property improvements in single central business district; definition
Status: in_force

42-6209. Abatement of tax for government property improvements in single central business district; definition

A. A city or town may abate the tax provided for under this article for a limited period beginning when the certificate of occupancy is issued and ending eight years after the certificate of occupancy is issued on a government property improvement that is constructed either before or after July 20, 1996 and that meets the following requirements:

1. The improvement is located in a single central business district in the city or town and is subject to a lease or development agreement entered into on or after April 1, 1985.  For the purposes of this section:

(a) A city or town shall not designate more than one central business district within its corporate boundaries.

(b) A city or town shall not approve or enter into a development agreement or lease for a government property improvement within one year after the designation of the central business district in which the improvement is located.

(c) "Central business district" means a single and contiguous geographical area that is designated by resolution of the governing body of the city or town and that is geographically compact and not larger than the greatest of the existing total land area of the central business district of the city or town as of January 1, 2018, two and one-half percent of the total land area within the exterior boundaries of the city or town or nine hundred sixty acres. For the purposes of this subdivision, any central business district formed before January 1, 2018 is considered to be geographically compact. For the expanded areas of an existing central business district only and the new designation of a central business district formed on or after January 1, 2018 and for the purposes of this subdivision, "geographically compact" means a form or shape that has a length that is not more than twice its width as measured from at least four points on the exterior boundary of the expanded areas of an existing central business district or a central business district formed on or after January 1, 2018.

2. The improvement is located entirely within a slum or blighted area that is designated pursuant to title 36, chapter 12, article 3.

3. The government property improvement resulted or will result in an increase in property value of at least one hundred percent.

B. The prime lessee shall notify the county treasurer and the government lessor and apply for the abatement before the taxes under this article are due and payable in the first year after the certificate of occupancy is issued.

C. Except as provided by subsection D of this section, each lease between a prime lessee and a government lessor for which the tax is abated under this section that is entered into from and after May 31, 2010, and that does not meet the conditions provided in section 42-6203, subsection A must be approved by a simple majority vote of the governing body without using a consent calendar and shall not be approved unless:

1. The government lessor notifies the governing bodies of the county and any city, town and school district in which the government property improvement is located at least sixty days before the approval.  The notice must include the name and address of the intended prime lessee, the location and proposed use of the government property improvement and the proposed term of the lease or development agreement.

2. The government lessor determines that, within the term of the lease or development agreement, the economic and fiscal benefit to this state and the county, city or town in which the government property improvement is located will exceed the benefits received by the prime lessee as a result of the development agreement or lease on the basis of an estimate of those benefits prepared by an independent third party in a manner and method acceptable to the governing body of the government lessor.  The estimate must be provided to the government lessor and the governing bodies of the county and any city, town and school district in which the government property improvement is located at least thirty days before the vote of the governing body. A lease or development agreement between a prime lessee and a government lessor involving residential rental housing is exempt from the economic estimate analysis requirements of this paragraph.

3. The lease or development agreement provides that the government lessor may not approve an amendment to change the use of the government property improvement during the period of abatement unless:

(a) The government lessor notifies the governing bodies of the county and any city, town and school district in which the government property improvement is located at least sixty days before the approval.  The notice must include the name and address of the prime lessee, the location and proposed use of the government property improvement and the remaining term of the lease or development agreement.

(b) The government lessor determines that, within the remaining term of the lease or development agreement, the economic and fiscal benefit to this state and the county, city or town in which the government property improvement is located will exceed the benefits received by the prime lessee as a result of the change in the lease or development agreement on the basis of an estimate of those benefits prepared by an independent third party in a manner and method acceptable to the governing body of the government lessor. The estimate must be provided to the government lessor and the governing bodies of the county and any city, town and school district in which the government property improvement is located at least thirty days before the vote of the governing body. A change in use under a lease or development agreement between a prime lessee and a government lessor to residential rental housing is exempt from the economic estimate analysis requirements of this subdivision.

D. Subsection C of this section does not apply if:

1. The tax is not abated under this section.

2. The government lessor is acting as a commercial landlord without a development agreement in a lease for a use ancillary to a government property improvement used for a public purpose.

E. The designation of a slum or blighted area that is originally designated from and after September 30, 2018 and in which a central business district is located automatically terminates on the tenth anniversary after the designation unless the city or town formally renews or modifies all or part of the slum or blighted area designation. The termination of a slum or blighted area designation under this subsection does not affect any existing project described in section 35-701, paragraph 7, subdivision (a), item  (ix) that is within the designated area. Before the tenth anniversary of its designation, the city or town shall review the area and, pursuant to the review, shall either renew, modify or terminate the designation. If the city or town renews or modifies the original designation, the slum or blighted area designation is subject to subsequent reviews on a ten-year cycle. If the city or town fails to renew or modify the designation, the slum or blighted area designation automatically terminates five years after the review. This subsection does not apply to leases or development agreements to lease government property if either of the following conditions is met with respect to any such excluded area:

1. The lease of the government property improvement was entered into before the termination or modification of the slum or blighted area designation.

2. A development agreement, ordinance or resolution was approved by the governing body of the government lessor before the termination or modification of the slum or blighted area designation that authorized a lease on the occurrence of specified conditions and the lease was entered into within five years after the date the development agreement was entered into or the ordinance or resolution was approved by the governing body.

F. Before October 1, 2020, each city or town shall review the designation of each slum or blighted area that was originally designated before September 30, 2018 and in which a central business district is located. All such slum or blighted areas in which a central business district is located are considered to be valid. Pursuant to the review, the city or town shall either renew, modify or terminate the designation. If the city or town renews or modifies the original designation, the slum or blighted area designation is subject to subsequent reviews on a ten-year cycle. If the city or town fails to renew or modify the designation, the slum or blighted area designation automatically terminates from and after September 30, 2025, or five years after any subsequent review. The termination of a slum or blighted area designation under this subsection does not affect:

1. Any existing project described in section 35-701, paragraph 7, subdivision (a), item (ix) that is within the designated area.

2. Any lease or development agreement to lease government property if either of the following conditions is met with respect to the slum or blighted area:

(a) The lease of the government property improvement was entered into before the termination or modification of the slum or blighted area designation.

(b) A development agreement, ordinance or resolution was approved by the governing body of the government lessor before the termination or modification of the slum or blighted area designation that authorized a lease on the occurrence of specified conditions and the lease was entered into within five years after the date the development agreement was entered into or the ordinance or resolution was approved by the governing body.

G. Notwithstanding section 42-6206, subsection C, beginning with development agreements, ordinances or resolutions to lease government property improvements approved by the governing body of the government lessor from and after December 31, 2016, the lease period for a property for which the tax is abated under this section may not exceed eight years, including any abatement period, regardless of whether the lease is transferred or conveyed to subsequent prime lessees during that period. As soon as reasonably practicable but within twelve months after the expiration date of the lease, the government lessor must convey to the current prime lessee title to the government property improvement and the underlying land. Property conveyed to the prime lessee under this subsection does not qualify for classification as class six property or for any other discounted assessment regardless of the location or condition of the property. This subsection does not apply to leases or development agreements to lease government property if either of the following occurred before January 1, 2017:

1. A corresponding resolution or ordinance for the lease or intent to lease such property subject to this section was approved by the governing body of the government lessor.

2. A proposal was submitted to the government lessor in response to a request for proposals.
A.R.S. § 42-16256 — Arizona Code / Title 42 / Chapter 16 / Article 6 / Section 16256
42-16256 Limitations
Status: in_force

42-16256. Limitations

A. In the case of real or personal property, the correction of errors under this article is limited to the period during which the current owner of record held title to the property, if the owner is a purchaser in good faith and without notice of any error that could have caused proceedings to be initiated to correct the tax roll when the owner purchased the property.

B. Except as provided in subsection C of this section, and subject to section 42-16252, subsection E, a notice of proposed correction or notice of claim filed under this article is limited to the current tax year in which the notice of proposed correction or notice of claim is filed and the three immediately preceding tax years.

C. If a specific error involving a particular property is established by a final nonappealable ruling by a court of competent jurisdiction in favor of the party who brought the action, the error may be corrected as of the date the action was filed or as of the date a notice of claim or notice of proposed correction was filed pursuant to this article, whichever is earlier, but no additional assessment or refund for any period before that date is permitted.

D. This article does not authorize an independent review of the overall valuation or legal classification of property that is not the result of an error as defined in section 42-16251.

E. The correction of errors under this article is limited to real property that has not been issued a certificate of purchase pursuant to chapter 18, article 3 of this title.
A.R.S. § 42-11122 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11122
42-11122 Exemption for trading commodities
Status: in_force

42-11122. Exemption for trading commodities

A commodity, as defined in 7 United States Code section 2, that is consigned for resale in a warehouse in this state in or from which the commodity is deliverable on a contract for future delivery subject to the rules of a commodity market regulated by the United States commodity futures trading commission is exempt from taxation.
A.R.S. § 42-18152 — Arizona Code / Title 42 / Chapter 18 / Article 4 / Section 18152
42-18152 When lien may be fully redeemed; partial payment refund
Status: in_force

42-18152. When lien may be fully redeemed; partial payment refund

A. A real property tax lien may be fully redeemed at any time:

1. Within three years after the date of tax lien sale.

2. After three years but before the delivery of a treasurer's deed to the certificate of purchase holder or the  certificate of purchase holder's heirs or assigns.

B. A lien that has been partially redeemed under section 42-18056, subsection C must be fully redeemed before the delivery of a treasurer's deed to the purchaser.

C. The county treasurer shall refund all partial payment amounts impounded under section 42-18056, subsection E to the person or persons or their heirs or assigns within thirty days after delivering the treasurer's deed to the purchaser or entry of a judgment directing the sale of the property for excess proceeds pursuant to article 6 of this chapter.
A.R.S. § 42-6205 — Arizona Code / Title 42 / Chapter 6 / Article 5 / Section 6205
42-6205 Disposition of revenue
Status: in_force

42-6205. Disposition of revenue

A. The county treasurer shall separately account for payments received under this article with respect to each government property improvement.

B. Within thirty days after receiving tax revenues under this article, the county treasurer shall pay to the following taxing jurisdictions in which the government property improvement is located the monies received with respect to the improvement, allocating the revenue among the jurisdictions as follows:

1. The county, for deposit in its general fund, thirteen per cent.

2. The city or town, seven per cent. If the government property improvement is located in an unincorporated area, the revenue that would otherwise be allocated to a city or town shall be allocated to the other jurisdictions identified in this section in the same proportion that the remaining revenues are allocated to them.

3. The community college district, seven per cent. If the government property improvement is not located in a community college district, the revenue that would otherwise be allocated to the district shall be allocated to the other jurisdictions identified in this section in the same proportion that the remaining revenues are allocated to them.

4. The common school district, thirty-six and one-half per cent, the high school district, thirty-six and one-half per cent, the common school district not within a high school district, seventy-three per cent, or the unified school district, seventy-three per cent. If the government property improvement is not located in any school district, the revenue that would otherwise be allocated under this paragraph shall be allocated to the other jurisdictions identified in this section in the same proportion that the remaining revenues are allocated to them.

C. The county treasurer shall distribute all monies collected or received under this article as delinquent or back taxes in the same manner and proportions as required by subsection B, except that the county treasurer shall credit to the county general fund any interest and penalties collected under this article with respect to delinquent taxes.
A.R.S. § 42-16053 — Arizona Code / Title 42 / Chapter 16 / Article 2 / Section 16053
42-16053 Rejection of petition for failure to include substantial information; amended petition; appeal
Status: in_force

42-16053. Rejection of petition for failure to include substantial information; amended petition; appeal

If the county assessor rejects a petition because it fails to include substantial information required by sections 42-16051 and 42-16052, and if the notice of rejection is mailed:

1. On or before June 15, the petitioner may file an amended petition with the assessor within fifteen days after the notice of rejection is mailed.

2. After June 15, the petitioner may appeal within fifteen days to:

(a) The county board of equalization as provided by article 3 of this chapter, if a county board is established in the county.

(b) The state board of equalization, if a county board is not established in the county.
A.R.S. § 42-3003 — Arizona Code / Title 42 / Chapter 3 / Article 1 / Section 3003
42-3003 Powers of administration and regulation
Status: in_force

42-3003. Powers of administration and regulation

A. This chapter shall be administered by the department of revenue according to chapter 1, articles 1 and 3 of this title and this chapter.

B. In the administration of this chapter the department, its agents and representatives shall possess:

1. The powers, duties and authority of police officers within this state.

2. The powers and authority of appraisement, valuation, assessment, correction, computation, estimation, supervision, direction, investigation, inspection, collection and enforcement that are vested in the department by any law of this state relating to public revenue and taxation and applicable to the administration of this chapter.
A.R.S. § 42-14302 — Arizona Code / Title 42 / Chapter 14 / Article 7 / Section 14302
42-14302 Situs and valuation of cars for tax purposes
Status: in_force

42-14302. Situs and valuation of cars for tax purposes

A car that is described in section 42-14301, paragraph 2 and that is used exclusively in this state or that is used partly in and partly outside this state:

1. Has a situs in this state for purposes of taxation.

2. Is subject to valuation under this article.
A.R.S. § 42-16211 — Arizona Code / Title 42 / Chapter 16 / Article 5 / Section 16211
42-16211 Payment of fees
Status: in_force

42-16211. Payment of fees

Any taxpayer who appeals to court shall pay the filing and appearance fees prescribed by section 12-167 to the clerk of the court.
A.R.S. § 42-5033 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5033
42-5033 Special census
Status: in_force

42-5033. Special census

A. During the fifth year following the decennial census, a county, city or town may cause to be taken by the United States bureau of the census a special census of the population of the county, city or town.  The results of the special census may be certified by the director. Beginning July 1 in the sixth year following the decennial census, the special census plus any revisions to the special census certified by the United States bureau of the census shall be used as the basis of apportionment of the taxes under section 42-5029, subsection D until the next federal decennial census, except that a city or town may elect to use either the results of the special census or the most recent population estimates from the United States bureau of the census as provided under section 42-5033.01.  A city or town may use the results of the special census for only one year, and beginning on July 1 in the second year after the special census, the city or town shall use the most recent population estimates from the United States bureau of the census as provided under section 42-5033.01 as the basis for the apportionment of monies pursuant to this article.

B. Notwithstanding any of the provisions of section 42-5029, any municipality that is initially incorporated subsequent to the decennial census or July 1 of the fifth year thereafter and that has caused a special census of the population within the municipal limits to be taken by the United States census bureau may cause the result of such special census to be certified to the director.  Commencing on July 1 following the completion of such a special census, the city or town may use the results of the special census or the most recent population estimates from the United States bureau of the census as the basis of apportionment of the taxes collected under this article in determining the amount payable to that municipality as provided under section 28-6532. The city or town may use the results of the special census for only one year, and beginning on July 1 in the second year after the special census, the city or town shall use the most recent population estimates from the United States bureau of the census as provided under section 42-5033.01 as the basis for the apportionment of monies pursuant to this article.
A.R.S. § 42-18054 — Arizona Code / Title 42 / Chapter 18 / Article 2 / Section 18054
42-18054 Tax statements for mortgaged property; liability
Status: in_force

42-18054. Tax statements for mortgaged property; liability

A. If property that is subject to taxation by the county assessor is mortgaged and the mortgagee, or a person acting for the mortgagee, by the terms of the mortgage agreement pays the tax on behalf of the mortgagor:

1. The county treasurer shall mail or, on the request of the mortgagor, email a statement of taxes due on the property to the mortgagor at the mortgagor's last known mailing address or, if requested, email address.  If the mortgagor of the property changes, the county treasurer shall mail the tax statement to the new mortgagor at the address of the property until the new mortgagor requests email delivery of the tax statement. The tax statement shall be sent to the mortgagor before November 1.  The tax statement shall separately list the following for the current and previous tax years for the property:

(a) The amount of primary taxes and secondary taxes applicable to the property that is due to each taxing jurisdiction.

(b) If applicable, the amount of additional state aid to school districts provided to property classified as class three pursuant to section 42-12003.

2. The county treasurer, on request, shall send a statement of taxes due on the property to the mortgagee.  The tax statement sent to the mortgagee may be in any form established by the county treasurer.

3. The liability for the tax, and any subsequent interest, fees and penalties, does not depend on either the mortgagor or the mortgagee receiving the tax statement.

B. When a mortgagee either continues to receive or possesses an unsatisfied tax statement from the county treasurer after the mortgage is satisfied, the mortgagee shall either:

1. Return the tax statement to the county treasurer within thirty working days, together with the last known address of the mortgagor as shown on the records of the mortgagee.

2. Forward the tax statement or current taxes due information to the mortgagor and notify the county treasurer of this action.

C. If a mortgagee fails to comply with subsection B of this section and, as a result of the mortgagee's failure to comply, the tax on the mortgagor's property becomes delinquent, the mortgagee is liable to the mortgagor for all interest and penalties imposed by law for the delinquent tax.
A.R.S. § 42-17004 — Arizona Code / Title 42 / Chapter 17 / Article 1 / Section 17004
42-17004 Hearing and appeals of commission findings
Status: in_force

42-17004. Hearing and appeals of commission findings

A. If the commission notifies a political subdivision of a violation of section 15-905.01, 15-1461.01 or 42-17107 or article 2 of this chapter, notifies a special taxing district of a violation of section 48-254, notifies a fire district of a violation of section 48-807 or notifies a school district of an incorrect calculation of the tax levy and rate as prescribed by section 15-992, and the political subdivision, special taxing district or fire district disputes the commission's findings, then on or before October 1 the political subdivision, special taxing district or fire district may request a hearing before the commission to attempt to resolve the dispute.

B. A governing body of a county, city, town, community college district, school district or fire district may request a hearing before the commission regarding the calculation of the maximum allowable primary or secondary property tax levy limits prescribed in section 42-17051 or 48-807 or the calculation of the tax levy and rate as prescribed in section 15-992, as applicable.  The commission may resolve any disputes.

C. The commission shall conduct the hearing as prescribed in title 41, chapter 6, article 10.

D. If the dispute is resolved at the hearing, the commission shall immediately notify the county board of supervisors of the proper primary or secondary tax levy and tax rate.

E. If a political subdivision, special taxing district or fire district continues to dispute the commission's findings after the hearing under this section, the political subdivision, special taxing district or fire district may:

1. Appeal the matter to tax court within thirty days after the commission renders the decision.

2. Levy primary or secondary property taxes in the amount that the political subdivision, special taxing district or fire district considers to be proper, pending the outcome of the appeal.
A.R.S. § 42-16103 — Arizona Code / Title 42 / Chapter 16 / Article 3 / Section 16103
42-16103 Hearing officers
Status: in_force

42-16103. Hearing officers

A. In fulfilling the responsibilities of the board of equalization, the board of supervisors, by a majority vote, may appoint a hearing officer to review petitions filed under section 42-16105.

B. An appointed hearing officer must meet the qualifications prescribed by the county board of equalization that at a minimum shall include experience in at least one of the following areas:

1. Real estate appraisal or sales.

2. Hearing property valuation appeals at the county or state level.

3. Arbitration.

C. At least annually each hearing officer appointed pursuant to this section shall attend valuation review classes provided by the state board of equalization.
A.R.S. § 42-6203 — Arizona Code / Title 42 / Chapter 6 / Article 5 / Section 6203
42-6203 Rates of tax
Status: in_force

42-6203. Rates of tax

A. Except as otherwise provided in this section, if a lease of a government property improvement was entered into before June 1, 2010, or if a development agreement, ordinance or resolution was approved by the governing body of the government lessor before June 1, 2010 that authorized a lease on the occurrence of specified conditions and the lease was entered into within ten years after the date the development agreement was entered into or the ordinance or resolution was approved by the governing body and the lease was determined by the department of revenue to be in compliance with this subsection:

1. The tax authorized by this article shall be levied and collected at the following rates:

(a) One dollar per square foot of gross building space for office buildings with one floor above ground.

(b) One dollar twenty-five cents per square foot of gross building space for office buildings with more than one but fewer than eight floors above ground.

(c) One dollar seventy-five cents per square foot of gross building space for office buildings with eight floors or more above ground.

(d) One dollar fifty cents per square foot of retail building space, including space that is devoted to the sale of tangible personal property, restaurants, health clubs, hair salons, dry cleaners, travel agencies and other retail services.

(e) One dollar fifty cents per square foot of hotel or motel building space.

(f) Seventy-five cents per square foot of warehouse or industrial building space.

(g) Fifty cents per square foot of residential rental building space.

(h) One hundred dollars per parking space located in a parking garage or deck.

(i) One dollar per square foot of all other government property improvements not included in subdivisions (a) through (h) of this paragraph.

2. The tax rate for government property improvements for which the original certificate of occupancy was issued:

(a) At least ten years but less than twenty years before the date the tax is due is eighty percent of the rate provided in paragraph 1 of this subsection.

(b) At least twenty years but less than thirty years before the date the tax is due is sixty percent of the rate provided in paragraph 1 of this subsection.

(c) At least thirty but less than forty years before the date the tax is due is forty percent of the rate provided in paragraph 1 of this subsection.

(d) At least forty but less than fifty years before the date the tax is due is twenty percent of the rate provided in paragraph 1 of this subsection.

(e) Fifty or more years before the date the tax is due is zero.

3. If no certificate of occupancy can be located, dated aerial photographs or other evidence of substantial completion may be used to determine the age of the building for purposes of paragraph 2 of this subsection.

4. A lease or development agreement, originally subject to this subsection, that is subsequently amended remains subject to this subsection if the amended lease or development agreement meets all of the following requirements:

(a) The government lessor determines that the amendment furthers the original purpose of the lease or development agreement.

(b) Any land added under the amendment is contiguous to the land under the original lease or development agreement and does not increase the land area under the original lease or development agreement by more than fifty percent.

(c) Any government property improvement added under the amendment does not increase the area of gross building space of government property improvements under the original lease or development agreement by more than one hundred percent.

B. Except as otherwise provided in this section, if a lease of a government property improvement does not meet the conditions for applying subsection A of this section:

1. Subject to paragraphs 2 and 3 of this subsection, the tax authorized by this article shall be levied and collected at the following base rates, which apply through December 31, 2011:

(a) Two dollars per square foot of gross building space for office buildings with one floor above ground.

(b) Two dollars thirty cents per square foot of gross building space for office buildings with more than one but fewer than eight floors above ground.

(c) Three dollars ten cents per square foot of gross building space for office buildings with eight floors or more above ground.

(d) Two dollars fifty-one cents per square foot of retail building space, including space that is devoted to the sale of tangible personal property, restaurants, health clubs, hair salons, dry cleaners, travel agencies and other retail services.

(e) Two dollars per square foot of hotel or motel building space.

(f) One dollar thirty-five cents per square foot of warehouse or industrial building space.

(g) Seventy-six cents per square foot of residential rental building space.

(h) Two hundred dollars per parking space located in a parking garage or deck.

(i) Two dollars per square foot of all other government property improvements not included in subdivisions (a) through (h) of this paragraph.

2. If, in the tax year in which the lease of the government property improvement is entered into, the aggregate of all ad valorem property tax rates of all taxing jurisdictions in which the government property improvement is located is at least ninety percent of the countywide average combined property tax rates, the rate of tax prescribed by paragraph 1 of this subsection, as currently adjusted pursuant to paragraph 3 of this subsection, applies with respect to that government property improvement. If, in the tax year in which the lease of the government property improvement is entered into, the aggregate of all ad valorem property tax rates of all taxing jurisdictions in which the government property improvement is located is less than ninety percent of the countywide average combined property tax rates, the rate of tax prescribed by paragraph 1 of this subsection, as currently adjusted pursuant to paragraph 3 of this subsection, shall be reduced by ten percent.

3. On or before December 1, 2011 and December 1 of each year thereafter, for all government property leases that are subject to this subsection, the department of revenue shall adjust the tax rates that apply under paragraphs 1 and 2 of this subsection in the following calendar year for each property use according to the average annual positive or negative percentage change for the two most recent fiscal years in the producer price index for new construction or its successor index published by the United States bureau of labor statistics. On or before December 15 of each year, the department shall post the adjusted rates for the following calendar year on its official website and transmit the adjusted rates to each county treasurer.

C. The tax rate for a government property improvement that was constructed pursuant to a lease or development agreement entered into from and after June 30, 1996 and that is located outside a slum or blighted area established pursuant to title 36, chapter 12, article 3 is one and one-half times the rate established by subsections A and B of this section.

D. Within the first twenty years after the issuance of the original certificate of occupancy, the tax rate on the use or occupancy of a government property improvement is twenty percent of the rate established in subsections A and B of this section for any of the following:

1. Government property improvements that are subject to leases or agreements that were entered into before April 1, 1985, and options and rights contained in the leases or agreements.

2. Government property improvements that are subject to leases entered into based on a redevelopment contract, as defined in section 36-1471, entered into before April 1, 1985.

3. Government property improvements that are subject to leases entered into based on an agreement for a redevelopment project for which federal grant monies have been received and that was entered into before April 1, 1985.

4. Government property improvements that are located at an airport that was owned on or before January 1, 1988 by a county having a population of four hundred thousand persons or less or by a city or town that is located in a county having a population of four hundred thousand persons or less if the property is used primarily for manufacturing, retail, distribution, research or commercial purposes. For the purposes of this paragraph, "commercial" includes facilities for office, recreational, hotel, motel and service uses.

E. Within the first ten years after the issuance of the certificate of occupancy, the tax rate on the use or occupancy of a government property improvement that is located in a slum or blighted area established pursuant to title 36, chapter 12, article 3, that resulted or will result in an increase in property value of at least one hundred percent and that is not eligible for abatement pursuant to section 42-6209 is eighty percent of the rate established in subsections A and B of this section.

F. The tax rate to be applied under subsection A or B of this section shall be determined by the predominant use to which the government property improvement is devoted, except that in all cases the tax rate prescribed by subsection A, paragraph 1, subdivision (h) or subsection B, paragraph 1, subdivision (h) of this section shall be applied to any parking garage or deck.  If there is no single predominant use, the tax shall be determined by applying the appropriate tax rate to the building space devoted to each use identified in that subsection. For the purposes of this subsection, in applying the tax rates under subsection A of this section the functional area of a government property improvement does not include subsidiary, auxiliary or servient areas such as lobbies, stairwells, mechanical rooms and meeting and banquet rooms. For the purposes of this subsection, "predominant use" means the use to which eighty-five percent or more of the functional area of a government property improvement is devoted.

G. Prime lessees of government property improvements who become taxable or whose taxable status terminates during the calendar year in which the taxes are due, including prime lessees subject to exemption or abatement under sections 42-6208 and 42-6209, shall pay tax for that calendar year on a pro rata basis.
A.R.S. § 42-1005 — Arizona Code / Title 42 / Chapter 1 / Article 1 / Section 1005
42-1005 Powers and duties of director
Status: in_force

42-1005. Powers and duties of director

A. The director shall be directly responsible to the governor for the direction, control and operation of the department and shall:

1. Make such administrative rules as he deems necessary and proper to effectively administer the department and enforce this title and title 43.

2. On or before November 15 of each year issue a written report to the governor and legislature concerning the department's activities during the year.  In any election year a copy of this report shall be made available to the governor-elect and to the legislature-elect.

3. On or before December 15 of each year issue a supplemental report which shall also contain proposed legislation recommended by the department for the improvement of the system of taxation in the state.

4. In addition to the report required by paragraph 2 of this subsection, on or before November 15 of each year issue a written report to the governor and legislature detailing the approximate costs in lost revenue for all state tax expenditures in effect at the time of the report.  For the purpose of this paragraph, "tax expenditure" means any tax provision in state law which exempts, in whole or in part, any persons, income, goods, services or property from the impact of established taxes including deductions, subtractions, exclusions, exemptions, allowances and credits.

5. Annually, on or before January 10, prepare and submit to the legislature a report containing a summary of all the revisions made to the internal revenue code during the preceding calendar year.

6. Provide such assistance to the governor and the legislature as they may require.

7. Delegate such administrative functions, duties or powers as he deems necessary to carry out the efficient operation of the department.

B. The director may enter into an agreement with the taxing authority of any state which imposes a tax on or measured by income to provide that compensation paid in that state to residents of this state is exempt in that state from liability for income tax, the requirement for filing a tax return and withholding tax from compensation. Compensation paid in this state to residents of that state is reciprocally exempt from the requirements of title 43.
A.R.S. § 42-16254 — Arizona Code / Title 42 / Chapter 16 / Article 6 / Section 16254
42-16254 Notice of claim; response; petition for review; appeal; acknowledgment of receipt
Status: in_force

42-16254. Notice of claim; response; petition for review; appeal; acknowledgment of receipt

A. If a taxpayer believes that the taxpayer's property has been assessed improperly as a result of a property tax error, the taxpayer shall file a notice of claim with the appropriate tax officer, either personally, electronically or by certified mail, as follows:

1. If the alleged error concerns the valuation or classification of property by the county assessor, the notice shall be filed with the assessor. On receiving the notice, the assessor shall immediately transmit a copy to the department.

2. If the alleged error concerns the valuation or classification of property by the department, the notice shall be filed with the department.

3. If the alleged error concerns the imposition of any tax rate, the notice shall be filed with the county board of supervisors. The clerk of the board of supervisors shall notify each affected taxing entity to allow the entity to file a response to the claim.

B. The notice shall:

1. Be in a form prescribed by the department.

2. Clearly identify the subject property by tax parcel number or tax roll number and the year or years for which the correction is proposed.

3. State the claim and the evidence to support the claim for correcting the alleged error.

C. Within sixty days after receiving a notice of claim, the tax officer may file a written response to the taxpayer to either consent to or dispute the error and to state the grounds for disputing the error. A failure to file a written response within sixty days constitutes consent to the error, and the board of supervisors shall direct the county treasurer to correct the tax roll on the taxpayer's written demand supported by proof of the date of the notice of claim and the tax officer's failure to timely dispute the error.

D. If the tax officer disputes the error, the tax officer shall notify the taxpayer of a time and place for a meeting between a representative of the tax officer and the taxpayer or the taxpayer's representative within sixty days to discuss the basis for the dispute.

E. If, after the meeting, the parties agree on all or part of the notice of claim, the tax roll must be corrected promptly to the extent agreed on and any taxes that have been overpaid shall be refunded pursuant to section 42-16259.

F. If the parties fail to agree on all or part of the notice of claim, the taxpayer may file a petition with the board of equalization on a form prescribed by the department and shall send a copy to the tax officer by certified mail. The petition must be filed with the board within ninety days after the date of the meeting or it is barred. On receiving the petition, the board shall hold a hearing on the disputed issues in the notice of claim within thirty days and shall issue a written decision pursuant to the board's rules.

G. A party that is dissatisfied with the decision of the board may appeal the decision to court within sixty days after the date the board's decision is mailed, but any additional taxes that are determined to be due must be timely paid before delinquency for the court to retain jurisdiction of the matter. In addition, in order for a taxpayer to recover a refund for taxes paid in a preceding tax year as a result of an error, all taxes that were levied and assessed against the property for the tax year must be paid before delinquency in order for the court to retain jurisdiction of the matter.

H. If a tax officer accepts electronic notice of claim from a taxpayer, the tax officer shall provide an electronic acknowledgement of receipt to the taxpayer.
A.R.S. § 42-12101 — Arizona Code / Title 42 / Chapter 12 / Article 3 / Section 12101
42-12101 Definitions
Status: in_force

42-12101. Definitions

In this article, unless the context otherwise requires:

1. "Commercial historic property" means real property that:

(a) Meets the criteria for classification as class one, paragraph 12 pursuant to section 42-12001 or class four pursuant to section 42-12004, subsection A, paragraphs 2 through 9.

(b) Is listed in the national register of historic places established and maintained under the national historic preservation act (P.L. 89-665; 80 Stat. 915; 16 United States Code section 470 et seq.), as amended.

(c) Meets the minimum standards of maintenance established by rule by the Arizona state parks board.

2. "Noncommercial historic property" means real property:

(a) That is listed in the national register of historic places established and maintained under the national historic preservation act (P.L. 89-665; 80 Stat. 915; 16 United States Code section 470 et seq.), as amended.

(b) That meets the minimum standards of maintenance established by rule by the Arizona state parks board.

(c) On which no business or enterprise is conducted with the intent of earning a profit.
A.R.S. § 42-1155 — Arizona Code / Title 42 / Chapter 1 / Article 4 / Section 1155
42-1155 Voluntary liens on property; security for delinquent taxes
Status: in_force

42-1155. Voluntary liens on property; security for delinquent taxes

The department may accept voluntary liens on real or personal property pledged by any person as security for any tax which the department is required to collect which is not paid by a taxpayer when due. A voluntary lien shall be perfected and treated in all respects the same as any other lien under this article.
A.R.S. § 42-1103.02 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1103.02
42-1103.02 Understatement of taxpayer's liability by return preparer; civil penalty; definition
Status: in_force

42-1103.02. Understatement of taxpayer's liability by return preparer; civil penalty; definition

A. The department may impose a civil penalty of two hundred fifty dollars against a return preparer who knew or reasonably should have known that an understatement of liability was on a return or claim for refund.  The penalty under this subsection may be imposed only if there was not a realistic possibility that the position would be sustained on its merits and the position was not disclosed to the department in the return or in a statement attached to the return.

B. The department may impose a civil penalty of one thousand dollars against a return preparer who wilfully made an understatement of liability on a return or claim for refund.

C. A return preparer is required to only pay eighty-five per cent of the imposed penalty if the payment is made within thirty days from the date of the receipt of notification that the penalty was imposed.  A return preparer may not appeal to the department pursuant to section 42-1251 if the return preparer fails to file the appeal within thirty days from the date of the receipt of notification that the penalty was imposed. If there is a final order or decision stating that the return preparer did not make an understatement of liability in a return or claim for refund, the department shall refund any penalty amount paid and interest to the return preparer.

D. For the purposes of this section, "understatement of liability" means any understatement of the net amount payable with respect to any imposed tax or any overstatement of the net amount creditable or refundable with respect to any tax.
A.R.S. § 42-15301 — Arizona Code / Title 42 / Chapter 15 / Article 7 / Section 15301
42-15301 Definition of possessory improvement
Status: in_force

42-15301. Definition of possessory improvement

In this article, unless the context otherwise requires, "possessory improvement" means all residential, commercial and industrial buildings, together with appurtenant awnings, decks, docks, garages, carports, storage or other incidental buildings, located on federal, state, county or municipal property or the property of another political subdivision of this state that is owned by a nongovernmental possessor thereof.
A.R.S. § 42-1006 — Arizona Code / Title 42 / Chapter 1 / Article 1 / Section 1006
42-1006 Interrogatories to taxpayers; power to require information; classification
Status: in_force

42-1006. Interrogatories to taxpayers; power to require information; classification

A. The director may prepare interrogatories to be propounded to taxpayers concerning matters relating to taxes, with an oath or affirmation annexed, which shall be fully answered by the taxpayers to whom they are submitted.

B. Any person who knowingly makes a false answer to any proper question submitted to him by the director or who knowingly fails to answer any question submitted, or to take or subscribe the oath or affirmation annexed thereto, is guilty of a class 2 misdemeanor.

C. The director may administer oaths or affirmations, issue subpoenas requiring attendance and testimony of witnesses, take evidence and require by subpoena duces tecum the production of books, papers and other documents which may be relevant to the powers and duties of the department.

D. The director may hold hearings to obtain information deemed necessary to carry out the powers and duties of the department. Hearings shall be held at a time and place and in the manner prescribed by the director, and notice of such hearing shall be given in the manner and form prescribed by the director.

E. In the case of refusal of the person to obey a subpoena issued by the director, the superior court, upon application by the director, shall issue to such person an order requiring him to appear before it and to produce evidence if so ordered, or give testimony, or to appear before the court and show cause why he should not be required to do so. Failure to obey such order of the court may be punished by the court as contempt.
A.R.S. § 42-16165 — Arizona Code / Title 42 / Chapter 16 / Article 4 / Section 16165
42-16165 Deadlines for issuing decisions
Status: in_force

42-16165. Deadlines for issuing decisions

The state board shall complete all hearings and issue all decisions under this article on or before October 15 of each year, except for:

1. Cases involving property valued by the department, in which case the decisions shall be issued on or before November 15.

2. An appeal under section 42-16157, subsection C, which shall be completed on or before the third Friday in November of the calendar year preceding the year in which the taxes are levied.

3. In the case of a personal property appeal under section 42-19052, the state board of equalization shall complete the hearing and issue a decision on or before December 1 of the calendar year in which the taxes are levied.
A.R.S. § 42-5021 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5021
42-5021 Payment of additional taxes after audit
Status: in_force

42-5021. Payment of additional taxes after audit

Any additional tax due as disclosed by an audit made under section 42-1108 shall be paid within thirty days after receipt of such assessment, or if an appeal is taken to the department, within ten days after the order or decision of the department has become final.
A.R.S. § 42-5066 — Arizona Code / Title 42 / Chapter 5 / Article 2 / Section 5066
42-5066 Job printing classification
Status: in_force

42-5066. Job printing classification

A. The job printing classification is comprised of the business of job printing, engraving, embossing and copying.

B. The tax base for the job printing classification is the gross proceeds of sales or gross income derived from the business, but the gross proceeds of sales or gross income derived from the following shall be deducted from the tax base:

1. Sales to a person in this state who has a transaction privilege tax license issued in this state, and who does either of the following:

(a) Resells the job printing, engraving, embossing or copying.

(b) Distributes such printing, engraving, embossing or copying without consideration in connection with the publication of a newspaper or magazine.

2. Sales of job printing, engraving, embossing and copying for use outside this state if the materials are shipped or delivered out of this state regardless of where title to the materials passes or their free on board point.

3. Sales of personal property to:

(a) Qualifying hospitals as defined in section 42-5001.

(b) A qualifying health care organization as defined in section 42-5001 if the tangible personal property is used by the organization solely to provide health and medical related educational and charitable services.

(c) A qualifying health sciences educational institution as defined in section 42-5001.

4. Sales of postage and freight except that the amount deducted shall not exceed the actual postage and freight expense that is paid to the United States postal service or a commercial delivery service and that is separately itemized by the taxpayer on the customer's invoice and in the taxpayer's records.
A.R.S. § 42-1002 — Arizona Code / Title 42 / Chapter 1 / Article 1 / Section 1002
42-1002 Department of revenue; director; appointments; compensation
Status: in_force

42-1002. Department of revenue; director; appointments; compensation

A. There is established a department of revenue.

B. The direction, operation and control of the department are the responsibility of the director.

C. The director shall be appointed by the governor pursuant to section 38-211 and shall serve at the pleasure of the governor.

D. Compensation for the director and the personnel required by the department shall be established pursuant to section 38-611 and title 41, chapter 4, article 4.
A.R.S. § 42-16156 — Arizona Code / Title 42 / Chapter 16 / Article 4 / Section 16156
42-16156 Case assignment
Status: in_force

42-16156. Case assignment

A. The chairman or chief clerk of the state board shall assign tax cases on a random basis to members of the board to be heard as provided by this article.  This subsection does not prevent the chairman or chief clerk from taking into account in assigning tax cases the availability of members, real or potential conflicts of interest of members or the convenience of petitioners or their representatives who file multiple petitions.

B. The chairman or chief clerk shall assign each case involving:

1. Appeals of property valuations that are determined by the department and equalization orders that are issued pursuant to statute to members of the board who are appointed by the governor. This paragraph does not apply to any properties that are valued by the department but would otherwise be valued by the county assessor.

2. Property listed as class three pursuant to section 42-12003 or property valued by the assessor at three million dollars or less to be heard by at least one member of the board or by a hearing officer who shall be from the county in which the property is located.

3. Any other property to a panel of either three or five members of the board, at least two of whom shall be from the county in which the property is located unless the chairman is sitting as a representative of that county.  The chairman of the board shall designate a member to act as chairman of each panel.  When possible, at the chairman's discretion, on any panel:

(a) Of three members, no more than one member may have been employed by a county assessor or county attorney or by the department of revenue or the department of law within four years.

(b) Of five members, no more than two members may have been employed by a county assessor or county attorney or by the department of revenue or the department of law within four years.

C. The chairman may sit on any case as a hearing officer representing any county.
A.R.S. § 42-17054 — Arizona Code / Title 42 / Chapter 17 / Article 2 / Section 17054
42-17054 Levy limit worksheet
Status: in_force

42-17054. Levy limit worksheet

A. When the county assessor transmits valuations under section 42-17052, the assessor shall prepare and transmit a final levy limit worksheet to each city, town and community college district that imposes a primary property tax, to each fire district that imposes a secondary property tax and to the property tax oversight commission.

B. Each city, town, community college district and fire district shall notify the property tax oversight commission in writing within ten days of its agreement or disagreement with the final levy limit worksheet.
A.R.S. § 42-11056 — Arizona Code / Title 42 / Chapter 11 / Article 2 / Section 11056
42-11056 Department records of valuations; notifying department of changes in valuations
Status: in_force

42-11056. Department records of valuations; notifying department of changes in valuations

A. The department may maintain a complete and current record of all property that is subject to property tax and of property tax assessments in this state.

B. The county assessors, county treasurers, county boards of equalization and state board of equalization shall notify the department of each change in valuation or assessment of any property listed on the rolls and the reasons for the change on such form as the department may prescribe. The county assessors and treasurers shall not make any change in the valuation or assessment of any property listed on the rolls unless the department is notified according to the form prescribed by the department.

C. The county assessors shall furnish the department with any other information that the department may require.
A.R.S. § 42-19111 — Arizona Code / Title 42 / Chapter 19 / Article 3 / Section 19111
42-19111 Notice of sale
Status: in_force

42-19111. Notice of sale

A. After seizing the property the sheriff shall give notice of the time, place and terms of sale by:

1. Posting three notices in the county where the property is to be sold.  One of the notices shall be posted at the place where the property is located, and the other two shall be posted in locations in the county that are commonly and regularly observed by the general public.

2. Either personal service on the owner of the property or mailing a copy of the notice to the owner by certified mail, return receipt requested. If notification under this paragraph cannot be completed because the owner is unknown or the owner's address is unknown, the sheriff shall publish notice in a newspaper of general circulation in the county in which the unsecured property was seized.  If the notice is published in a weekly newspaper, the notice must appear once each week for two consecutive weeks. If the notice is published in a daily newspaper, the notice must appear six consecutive times.  In either case, the last publication must appear at least three weeks but not more than four weeks before the date of the sale.

B. The notices shall:

1. Describe the property to be sold.

2. State the name of the owner or person to whom the property is assessed.

3. State the place and time of holding the sale.

4. State the amount of taxes for which the property is to be sold.

C. The sheriff may not sell personal property under section 42-19113 until at least three weeks after the notice is served on the property owner, after receiving confirmation that the owner received the notice by certified mail or after the last date of notice by publication, whichever method the sheriff used under subsection A, paragraph 2 of this section.

D. If a court determines that a sheriff failed to give notice as required by this section:

1. Any sale of the personal property by the sheriff is void.

2. The owner is entitled to redeem the property as provided by this article on paying the outstanding taxes, interest and costs associated with collecting the taxes.

3. The court may award fees and other expenses associated with the adjudication to the owner as provided by section 12-348.
A.R.S. § 42-2057 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2057
42-2057 Agreement for installment payments of tax
Status: in_force

42-2057. Agreement for installment payments of tax

A. The department may enter into an agreement with a taxpayer to allow the taxpayer to satisfy a liability for any tax by means of installment payments. The department may require a taxpayer who requests an installment payment agreement to complete a financial report in such form and manner as the department may prescribe.

B. The department, without notice, may alter, modify or terminate an installment payment agreement if the taxpayer:

1. Fails to pay an installment at the time the installment payment is due under the agreement.

2. Fails to pay any other tax liability at the time the liability is due.

3. Fails to file any tax report or return at the time the report or return is due.

4. Fails to furnish any information requested by the department within thirty days after the request.

5. Fails to notify the department of a material improvement in the taxpayer's financial condition above the income previously reported in the most recent income statement within thirty days after the material improvement.

6. Provides inaccurate, false or incomplete information to the department.

C. Notwithstanding any installment payment agreement, the department may offset any tax refunds against the liabilities provided for in the installment payment agreement, may file and fully enforce any tax liens and may engage in collection activities involving the sale of assets.

D. The department, without notice, may terminate an installment payment agreement if the department believes that the collection of tax to which the payment agreement pertains is in jeopardy.

E. If the department determines that the financial condition of a taxpayer has improved, the department may alter, modify or terminate the agreement by providing notice to the taxpayer at least thirty days before the effective date of the action. The notice shall include the reasons why the department believes the alteration, modification or termination is appropriate.

F. An installment payment agreement shall remain in effect for the term of the agreement except as otherwise provided in this section.

G. A taxpayer who is aggrieved by a decision of the department to refuse to enter into an installment payment agreement or to alter, modify or terminate an agreement entered into pursuant to this section may petition the office of taxpayer assistance to review that determination. The office of taxpayer assistance may stay such alteration, modification or termination pending its review and may modify or nullify the determination.

H. The department and the taxpayer may modify any installment payment agreement at any time by entering into a new or modified agreement.

I. The department may adopt rules to implement this section.
A.R.S. § 42-17107 — Arizona Code / Title 42 / Chapter 17 / Article 3 / Section 17107
42-17107 Truth in taxation notice and hearing; roll call vote on tax increase; definition
Status: in_force

42-17107. Truth in taxation notice and hearing; roll call vote on tax increase; definition

A. On or before February 10 of the tax year, the county assessor shall transmit and certify to the property tax oversight commission and to the governing body of the county, city or town the total net assessed values that are required to compute the levy limit prescribed by section 42-17051.  If the proposed primary property tax levy, excluding amounts that are attributable to new construction, is greater than the amount levied by the county, city or town in the preceding tax year in the county, city or town:

1. The governing body shall publish a notice that meets all of the following requirements:

(a) Is published twice in a newspaper of general circulation in the county, city or town. The first publication shall be at least fourteen but not more than twenty days before the date of the hearing. The second publication shall be at least seven but not more than ten days before the date of the hearing.

(b) Is published in a location other than the classified or legal advertising section of the newspaper in which it is published.

(c) Is at least one-fourth page in size and is surrounded by a solid black border at least one-eighth inch in width.

(d) Is in the following form, with the "truth in taxation hearing notice of tax increase" headline in at least eighteen-point type:

Truth in Taxation Hearing

Notice of Tax Increase

In compliance with section 42-17107, Arizona Revised Statutes, (name of county, city or town) is notifying its property taxpayers of  (name of county, city or town)'s intention to raise its primary property taxes over last year's level. (name of county, city or town) is proposing an increase in primary property taxes of $__________ or _____%.

For example, the proposed tax increase will cause (name of county, city or town)'s primary property taxes on a $100,000 home to be $(total proposed taxes including the tax increase).  Without the proposed tax increase, the total taxes that would be owed on a $100,000 home would have been $_____.

This proposed increase is exclusive of increased primary property taxes received from new construction. The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides.

All interested citizens are invited to attend the public hearing on the tax increase that is scheduled to be held (date and time) at (location).

(e) Is included in the estimates of revenues and expenses pursuant to section 42-17103 and in the budget finally adopted pursuant to section 42-17105.

2. In lieu of publishing the truth in taxation notice, the governing body may mail the truth in taxation notice prescribed by paragraph 1, subdivision (d) of this subsection to all registered voters in the county, city or town at least ten but not more than twenty days before the date of the hearing on the estimates pursuant to section 42-17104.

3. In addition to publishing the truth in taxation notice under paragraph 1 of this subsection or mailing the notice under paragraph 2 of this subsection, the governing body shall issue a press release containing the truth in taxation notice. The press release must:

(a) Include the name of the newspaper of general circulation in which the truth in taxation notice will be published and the dates on which the truth in taxation notice will be published.

(b) Be posted on the official website of the county, city or town.

4. The governing body shall consider a motion to levy the increased property taxes by roll call vote. If the proposed levy, exclusive of increased property taxes received from new construction, constitutes an increase over the preceding tax year's levy by fifteen percent or more, the motion to levy the increased property taxes must be approved by a unanimous roll call vote of the governing body.

5. Within three days after the hearing, the governing body shall mail a copy of the truth in taxation notice, a statement of its publication or mailing and the result of the governing body's vote under paragraph 4 of this subsection to the property tax oversight commission.

6. The governing body shall hold the truth in taxation hearing on or before the adoption of the county, city or town budget under section 42-17105.

B. If the governing body fails to comply with the requirements of this section, the governing body shall not fix, levy or assess an amount of primary property taxes that exceeds the preceding year's amount, except for amounts attributable to new construction.

C. For the purposes of this section, "amount attributable to new construction" means the net assessed valuation of property added to the tax roll since the previous year multiplied by a property tax rate computed by dividing the primary property tax levy of the county, city or town in the preceding year by the estimate of the total net assessed valuation of the county, city or town for the current year, excluding the net assessed valuation attributable to new construction.
A.R.S. § 42-3402 — Arizona Code / Title 42 / Chapter 3 / Article 10 / Section 3402
42-3402 Contraband tobacco products
Status: in_force

42-3402. Contraband tobacco products

Notwithstanding any other law to the contrary, tobacco products that are ordered, purchased or transported in violation of section 13-3711, 36-798.06 or 42-3461 or section 44-7111, section  3(c) or any other statute under which the tobacco products are subject to seizure and destruction are considered to be contraband for which taxes that are imposed under this chapter may not be reported and remitted by a distributor pursuant to sections 42-3462 and 42-3501 or reported by a person pursuant to section 42-3457, subsection B.
A.R.S. § 42-15053 — Arizona Code / Title 42 / Chapter 15 / Article 2 / Section 15053
42-15053 Duty to report personal property; exemption; contents of report; confidentiality
Status: in_force

42-15053. Duty to report personal property; exemption; contents of report; confidentiality

A. On or before February 1 of each year, the assessor shall mail a form, notice or demand to each person that owns or has charge or control of taxable personal property in this state. Each person shall prepare and deliver to the assessor a correct report of property on or before April 1 of each year. On written request and for good cause shown, the assessor may extend for up to thirty days the time for filing the report.

B. Property that is not required to be reported as provided by subsection D of this section is exempt from the reporting requirement of subsection A of this section. The county assessor may not require a person that owns or has charge or control of property that is not required to be reported as provided by subsection D of this section to apply to be exempt from the reporting requirement of subsection A of this section.

C. The duty to report taxable property pursuant to this section applies regardless of whether the person or entity that owns or has charge or control of the personal property also owns real property in the county with a value of $200 or more.

D. The assessor shall not require a report of:

1. The breed, number, age or location of livestock on hand from individuals, corporations, partnerships or any other business if the livestock is exempt from taxation pursuant to article IX, section 13, Constitution of Arizona.

2. The personal property that is class two (P) property pursuant to section 42-12002, paragraph 2 and that is used for agricultural purposes or that is class one, subclasses 8 through 11 and 13 property pursuant to section 42-12001 and that is used in a trade or business that is exempt from taxation pursuant to article IX, section 2, subsection E, Constitution of Arizona.

E. Every assessment made against property that is subject to taxation is valid whether or not the form, notice or demand was sent or received.

F. The department shall prescribe in detail the contents of property reports including the specific wording to be used by county assessors and the method of reporting property. The report shall not include any question that is not germane to the valuation function.

G. A report that is furnished under this section:

1. Is not open to public inspection, but the report may be used as evidence in any prosecution brought under section 42-15055.

2. May be subject to audit. On completing an audit or on discovering property that has not been reported, any property that was found to have escaped taxation is liable for the amount of taxes due determined under chapter 16, article 6 of this title, plus a penalty equal to ten percent of that amount.  The county treasurer shall credit monies received as penalties under this paragraph to the county general fund.
A.R.S. § 42-18104 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18104
42-18104 Taxes for which lien may be sold
Status: in_force

42-18104. Taxes for which lien may be sold

A. The delinquent taxes for which a real property tax lien may be sold pursuant to this article are not limited to unpaid taxes for any particular year or years.

B. The county treasurer shall advertise and sell the tax lien for the aggregate amount of all unpaid taxes that are delinquent on the property, together with all penalties, interest and charges respectively due for the current or preceding years, whether or not the aggregate amount or any part has been reduced to judgment, and any outstanding fees attached to the parcel.

C. The failure to include the unpaid taxes of any year does not invalidate a sale for unpaid taxes that are delinquent for any other year or years.
A.R.S. § 42-5012 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5012
42-5012 Sales between affiliated persons
Status: in_force

42-5012. Sales between affiliated persons

In determining value as applied to sales from one to another of affiliated corporations or persons, or other circumstances where the relation between the buyer and seller is such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale, the department shall prescribe uniform and equitable rules for determining the value upon which the tax shall be levied, corresponding as nearly as possible to the gross proceeds from the sale of similar products of like quality or character by other taxpayers where no common interest exists between the buyer and seller, but otherwise under similar circumstances and conditions.
A.R.S. § 42-1114 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1114
42-1114 Suit to recover taxes
Status: in_force

42-1114. Suit to recover taxes

A. The department may bring an action in the name of this state to recover the amount of any taxes, penalties, interest or other amounts owed by the taxpayer to the department that are due and unpaid. The department of law shall prosecute the action. In the action a writ of attachment may be issued and no bond or affidavit previous to issuing the attachment is required. In the action a certificate by the department of revenue showing the delinquency is prima facie evidence of the levy of the tax, of the delinquency and of the compliance by the department of revenue with all the provisions of law relating to the computation and levy of the tax.

B. The department of revenue may bring an appropriate action in any court of competent jurisdiction in the United States or any foreign country in the name of this state to recover the amount of any taxes, interest and penalties or any other amounts owed by the taxpayer to the department that are due. The department of law shall prosecute the action.

C. The action shall not commence more than ten years after the amount of taxes determined to be due becomes final unless the taxpayer and the department extend the ten year limitation or enforced collection has been stayed by operation of federal or state law. If enforced collection has been stayed, the period of limitations shall be extended by the period of time that the department was stayed from engaging in enforced collections.
A.R.S. § 42-13102 — Arizona Code / Title 42 / Chapter 13 / Article 3 / Section 13102
42-13102 Statement of agricultural lease
Status: in_force

42-13102. Statement of agricultural lease

A. Each lease of agricultural land or agreement to rent agricultural land for a period of more than ninety days shall be abstracted in a written statement in a form approved by the department containing at least the following information:

1. The name and address of the lessor and lessee.

2. The complete legal description of the property.

3. The situs address, if any, of the property.

4. The cash or cash equivalent of the lease payments.

5. The conditions of the lease, including the relationship, if any, of the parties.

6. The lessor expenses associated with the property excluding land cost, interest on land cost, income tax depreciation and capital improvements.

B. The county assessor shall not use the information listed pursuant to chapter 15, article 2 of this title to supplement the information obtained pursuant to this section.

C. The owner or lessor or an agent of the owner or lessor shall file the statement with the county assessor for use by the assessor for the valuation process under section 42-13101. If the ownership or the lessor or lessee of the property changes or if there is a change in the lease as abstracted pursuant to subsection A of this section, a new statement shall be filed with the assessor within three months after the change or before January 31, whichever is later.

D. The assessor shall transmit a copy of the statement to the department.
A.R.S. § 42-19155 — Arizona Code / Title 42 / Chapter 19 / Article 4 / Section 19155
42-19155 Unlawful sale or removal of mobile home; classification
Status: in_force

42-19155. Unlawful sale or removal of mobile home; classification

A. It is unlawful to knowingly move or sell a mobile home on which applicable ad valorem taxes imposed under this chapter have not been paid and are delinquent.

B. A person who violates this section is guilty of a class 1 misdemeanor. Any fine collected under this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.
A.R.S. § 42-13301 — Arizona Code / Title 42 / Chapter 13 / Article 7 / Section 13301
42-13301 Limited property value
Status: in_force

42-13301. Limited property value

A. The limited property value of property for property taxation purposes is the limited property value of the property in the preceding valuation year plus five per cent of that value.

B. The current limited property value of a parcel of property shall not exceed its current full cash value.

C. The limited property value of a parcel of property shall be determined and shown on notices and tax rolls as the total limited property value of the property. Separate determinations shall not be made for the limited property value of land and for the improvements on the land in reference to property parcels.
A.R.S. § 42-19159 — Arizona Code / Title 42 / Chapter 19 / Article 4 / Section 19159
42-19159 Owner's action to collect delinquent tax from previous owner
Status: in_force

42-19159. Owner's action to collect delinquent tax from previous owner

A. A person who purchases a mobile home and who subsequently pays taxes that were imposed by this article on the mobile home and that were levied and became delinquent when the mobile home was the property of a previous owner may bring an action against the previous owner for the amount of the delinquent taxes paid.

B. If the purchaser prevails, the purchaser shall recover damages including reasonable attorney fees and treble the amount of delinquent taxes paid.

C. This section does not apply if the purchaser has specifically assumed the delinquent tax liability in writing, signed by the purchaser and seller, and the delinquent taxes assumed are correctly stated by year and amount due.
A.R.S. § 42-18207 — Arizona Code / Title 42 / Chapter 18 / Article 5 / Section 18207
42-18207 Prosecution of action brought by state; disposition of costs
Status: in_force

42-18207. Prosecution of action brought by state; disposition of costs

If the state brings an action to foreclose, it shall be prosecuted by the county attorney. The costs and attorney fees awarded shall be deposited in the county general fund.
A.R.S. § 42-14308 — Arizona Code / Title 42 / Chapter 14 / Article 7 / Section 14308
42-14308 Assessment, levy and collection of tax
Status: in_force

42-14308. Assessment, levy and collection of tax

A. The department shall annually:

1. Enter in its records the full cash value of each private car company in this state as determined under this article.

2. Assess the property as provided by sections 42-12005 and 42-15005.

3. Levy a tax against the values so determined and assessed at a rate that equals the sum of the average rates for primary and secondary property taxes in the taxing jurisdictions in this state for the current year.

4. Collect the taxes that are:

(a) Due and payable on the following October 1.

(b) Delinquent after the following November 1.

5.  Deposit, pursuant to sections 35-146 and 35-147, the tax revenues in the state general fund.

B. The tax imposed by this section is in lieu of all other taxes on the property and business of private car companies in this state except for the annual license tax and registration fee.

C. Delinquent taxes bear interest at the rate determined pursuant to section 42-1123 for each subsequent month in which the tax remains unpaid.

D. The full cash values that are used for tax purposes pursuant to subsection A of this section are a matter of public record and are not confidential information under chapter 2, article 1 of this title.
A.R.S. § 42-2053 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2053
42-2053 Procedures involving taxpayer interviews
Status: in_force

42-2053. Procedures involving taxpayer interviews

A. On the request of a taxpayer, and under circumstances prescribed by the department, an employee of the department, in connection with any interview with the taxpayer that relates to a deficiency in payment of any tax owed to the department, shall:

1. Conduct the interview in the place of business of the taxpayer, or at the department office closest to the taxpayer's residence.

2. Conduct the interview at a reasonable time which imposes no unusual hardship on the taxpayer.

3. Allow the taxpayer to record the interview.

B. An employee of the department may record an interview with a taxpayer that relates to a deficiency in payment of any tax owed to the department. The employee shall inform the taxpayer of the recording before the interview begins. On written request by the taxpayer, the department shall provide a transcript of the recording, if the taxpayer reimburses the department for the cost of providing the transcript.

C. Before beginning any interview relating to a deficiency in the payment of any tax owed to the department an employee of the department shall provide the taxpayer with information regarding the taxpayer's rights and the audit, corrections and appeals procedures of the department relating to the taxpayer's deficiency.
A.R.S. § 42-18124 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18124
42-18124 Compromising taxes, interest and penalties; omission of tax or fund from action for collection
Status: in_force

42-18124. Compromising taxes, interest and penalties; omission of tax or fund from action for collection

A. If it appears to the board of supervisors that any property is not worth the amount of taxes, interest, costs and penalties due or that the tax lien on the property would not sell for that amount, the board may compromise the taxes, interest and penalties with the owner or with the holder of a certificate of purchase that was issued pursuant to section 42-18118.

B. On payment to the county treasurer of the amount agreed on the treasurer shall:

1. Issue a certificate of redemption releasing the property from the tax lien.

2. Distribute the monies paid to the various funds to which the taxes are due in the proportion the amount received bears to the whole amount charged against the property for the current tax year.

C. The board may:

1. Order that no action be brought on any specified property if in its judgment the property is not worth or will not bring an amount equal to the taxes, interest and costs.

2. Direct that any tax or fund, the validity of which is being contested in the courts, be omitted from any action brought under this article. The judgment rendered in an action in which the tax is omitted does not bar or affect a subsequent action for the tax so omitted.

3. Condition the relief under this section by requiring the holder of a certificate of purchase to complete a judicial foreclosure under article 5 of this chapter.

D. If the board of supervisors determines that property described in subsection A of this section is also substantially contaminated with hazardous substances or petroleum, the board may reduce the lien for the delinquent taxes, interest, costs and penalties as follows:

1. The delinquent taxes, interest, costs and penalties may be reduced in an amount not to exceed the actual expenses to mitigate conditions at the property for:

(a) Removal actions as defined by 42 United States Code section 9601.

(b) Preparation and implementation of a remedial investigation and feasibility study pursuant to section 49-287.03.

(c) Preparation and implementation of a remedial action plan pursuant to section 49-287.04.

(d) Preparation and implementation of an agreement for work pursuant to section 49-282.05.

(e) Preparation and implementation of a corrective action plan pursuant to section 49-1005.

(f) Preparation and implementation of a work plan approved pursuant to section 49-177.

2. For property acquired after December 31, 2001, the expenses must have been incurred by or on behalf of the property owner within five years after acquiring title to the property.

3. For property acquired on or before December 31, 2001, the expenses must be incurred by or on behalf of the property owner on or before December 31, 2006.

4. Only expenses that are reasonable and necessary to remediate contamination at the property may be considered for purposes of this section.

5. Expenses that were inconsistent with or in violation of requirements imposed by the department of environmental quality may not be used to reduce taxes, interest, costs and penalties under this section.

6. A person that is a responsible party pursuant to section 49-283, or that person’s partner, officer, employee or relative, is not eligible to redeem the property from the reduced tax lien. For the purposes of this paragraph, "relative" means:

(a) Spouse.

(b) Parent or ancestor of a parent.

(c) Child or descendant of a child.

(d) Sibling.

(e) Cousin, aunt, uncle, niece or nephew of the first degree.

(f) The spouse of a relative listed in subdivisions (b) through (e).

(g) A relative listed in subdivisions (b) through (e) by the half-blood or by adoption.

7. A person seeking a reduction under this subsection shall submit to the board of supervisors an affidavit attesting that:

(a) The expenses were reasonable and necessary to address contamination at the property.

(b) The person is not a responsible party pursuant to section 49-283 or a relative as described in this section.

8. The county treasurer shall apply the reduction in delinquent taxes, interest, costs and penalties pro rata among the jurisdictions imposing the taxes on the property and shall note the reduction in the delinquent tax record under section 42-18102.

E. Subsection D of this section does not affect the personal liability of a property owner for acts or omissions that caused or contributed to the contamination.
A.R.S. § 42-6017 — Arizona Code / Title 42 / Chapter 6 / Article 1 / Section 6017
42-6017 Municipal taxation of businesses selling tangible personal property at retail; state preemption; exceptions; definitions
Status: in_force

42-6017. Municipal taxation of businesses selling tangible personal property at retail; state preemption; exceptions; definitions

A. Except as provided in this section, section 42-5061 supersedes all city or town ordinances or other local laws insofar as the ordinances or local laws now or hereafter relate to the taxation of business activities classified under section 42-5061.

B. The municipal tax rate for businesses selling tangible personal property at retail for marketplace facilitators is the municipal tax rate that is in effect in the city or town for businesses selling tangible personal property at retail on September 30, 2019, until the city or town changes the tax rate.

C. A city or town may:

1. Notwithstanding section 42-5061, subsection A, paragraph 15, levy a transaction privilege tax on the gross proceeds of sales or gross income derived from the business of selling food at retail by the persons described in section 42-5102, subsection A, subject to the conditions of sections 42-5074, 42-5101 and 42-6015.

2. Notwithstanding section 42-5061, subsection A, paragraph 17, levy a transaction privilege tax on the gross proceeds of sales or gross income derived from a bookstore selling textbooks that are required by any state university or community college.

3. Notwithstanding section 42-5061, subsection A, paragraph 33, paragraph 42, subdivision (b) and paragraph 43 and subsection B, paragraph 5, continue to levy an existing transaction privilege tax that was levied on or before May 1, 2019 on the gross proceeds of sales or gross income derived from the sales of:

(a) Propagative materials to persons who use those items to commercially produce agricultural, horticultural, viticultural or floricultural crops in this state.  This subdivision does not apply and a city or town may not continue to levy a transaction privilege tax pursuant to this subdivision as follows:

(i) For a city or town with a population of fifty thousand persons or less, from and after June 30, 2021.

(ii) For a city or town with a population of more than fifty thousand persons, from and after December 31, 2019.

(b) Livestock and poultry feed, salts, vitamins and other additives for livestock or poultry consumption that are sold to persons for use or consumption by their own livestock or poultry, for use or consumption in the businesses of farming, ranching and producing or feeding livestock, poultry, or livestock or poultry products or for use or consumption in noncommercial boarding of livestock.

(c) Implants used as growth promotants and injectable medicines, not already exempt under section 42-5061, subsection A, paragraph 8, for livestock or poultry owned by or in possession of persons who are engaged in producing livestock, poultry, or livestock or poultry products or who are engaged in feeding livestock or poultry commercially. This subdivision does not apply and a city or town may not continue to levy a transaction privilege tax pursuant to this subdivision as follows:

(i) For a city or town with a population of fifty thousand persons or less, from and after June 30, 2021.

(ii) For a city or town with a population of more than fifty thousand persons, from and after December 31, 2019.

(d) Neat animals, horses, asses, sheep, ratites, swine or goats used or to be used as breeding or production stock, including sales of breedings or ownership shares in such animals used for breeding or production.  This subdivision does not apply and a city or town may not continue to levy a transaction privilege tax pursuant to this subdivision as follows:

(i) For a city or town with a population of fifty thousand persons or less, from and after June 30, 2021.

(ii) For a city or town with a population of more than fifty thousand persons, from and after December 31, 2019.

4. Levy a transaction privilege tax on the gross proceeds of sales or gross income derived from the sale of nonmetalliferous mined materials at retail.

5. Notwithstanding section 42-5061, subsection A, paragraph 59, levy a transaction privilege tax on the gross proceeds of sales or gross income derived from the sale of works of fine art, as defined in section 44-1771, at an art auction or gallery in this state to nonresidents of this state for use outside this state if the vendor ships or delivers the work of fine art to a destination outside this state.

6. Notwithstanding section 42-5061, subsection A, paragraph 28 or section 42-5122, levy a transaction privilege tax on the gross proceeds of sales or gross income derived from the sale of a motor vehicle to:

(a) A nonresident of this state if the purchaser's state of residence does not allow a corresponding use tax exemption to the tax imposed by chapter 5, article 1 of this title and if the nonresident has secured a special ninety day nonresident registration permit for the vehicle as prescribed by sections 28-2154 and 28-2154.01. This subdivision does not apply if the purchaser takes possession of the vehicle outside of this state.

(b) An enrolled member of an Indian tribe who resides on the Indian reservation established for that tribe, except if possession of the vehicle is received on the enrolled member's Indian reservation.

7. Exempt from transaction privilege, sales, use or other similar tax the sale of paintings, sculptures or similar works of fine art, if such works of fine art are sold by the original artist. For the purposes of this paragraph, fine art does not include an art creation such as jewelry, macramé, glasswork, pottery, woodwork, metalwork, furniture or clothing if the art creation has a dual purpose, both aesthetic and utilitarian, whether sold by the artist or by another person.

D. For the purposes of this section:

1. "Food" has the same meaning prescribed by rule adopted by the department pursuant to section 42-5106.

2. "Marketplace facilitator" has the same meaning prescribed in section 42-5001.

3. "Poultry" includes ratites.

4. "Propagative materials":

(a) Includes seeds, seedlings, roots, bulbs, liners, transplants, cuttings, soil and plant additives, agricultural minerals, auxiliary soil and plant substances, micronutrients, fertilizers, insecticides, herbicides, fungicides, soil fumigants, desiccants, rodenticides, adjuvants, plant nutrients and plant growth regulators.

(b) Except for use in commercially producing industrial hemp as defined in section 3-311, does not include any propagative materials used in producing any part, including seeds, of any plant of the genus cannabis.

5. "Remote seller" has the same meaning prescribed in section 42-5001.
A.R.S. § 42-12004 — Arizona Code / Title 42 / Chapter 12 / Article 1 / Section 12004
42-12004 Class four property
Status: in_force

42-12004. Class four property

A. For the purposes of taxation, class four is established consisting of:

1. Real and personal property and improvements to the property that are used for residential purposes, including residential property that is owned in foreclosure by a financial institution, that is not otherwise included in another classification and that is valued at full cash value.  The homesite that is included in class four may include:

(a) Up to ten acres on a single parcel of real property on which the residential improvement is located.

(b) More than ten, but not more than forty, acres on a single parcel of real property on which the residential improvement is located if it is zoned exclusively for residential purposes or contains legal restrictions or physical conditions that prevent the division of the parcel. For the purposes of this subdivision, "physical conditions" means topography, mountains, washes, rivers, roads or any other configuration that limits the residential usable land area.

2. Real and personal property and improvements to the property that are used for residential purposes and solely leased or rented, that are not included in class one, two, three, six, seven or eight and that are valued at full cash value.

3. Child care facilities that are licensed under title 36, chapter 7.1 and that are valued at full cash value.

4. Real and personal property and improvements to property that are used to operate nonprofit residential housing facilities that are structured to house or care for persons with disabilities or who are at least sixty-two years of age and that are valued at full cash value.

5. Real and personal property and improvements that are used to operate licensed residential care institutions or licensed nursing care institutions that provide medical services, nursing services or health-related services and that are structured to house or care for persons with disabilities or who are at least sixty-two years of age and that are valued at full cash value.

6. Real and personal property consisting of not more than eight rooms of residential property that are leased or rented to transient lodgers, together with furnishing not more than a breakfast meal, by the owner who resides on the property and that is valued at full cash value.

7. Real and personal property that consists of residential dwellings maintained for occupancy by agricultural employees as a condition of employment or as a convenience to the employer, that is not included in class three and that is valued at full cash value. The land associated with these dwellings shall be valued as agricultural land pursuant to chapter 13, article 3 of this title.

8. Real property and improvements to property constituting common areas that are valued pursuant to chapter 13, article 9 of this title.

9. Real and personal property that is defined as timeshare property by section 32-2197 and valued pursuant to chapter 13, article 10 of this title, except for any property used for commercial, industrial or transient occupancy purposes and included in class one to the extent of that use.

10. Real and personal property and improvements that are used for residential purposes and that are leased or rented to lodgers, except for:

(a) Property occupied by the owner of the property as the owner's primary residence and included in class three.

(b) Property used for commercial purposes and included in class one.

11. Low-income multifamily residential rental properties that are valued pursuant to chapter 13, article 13 of this title.

12. Real and personal property and improvements to property of a guest ranch that meets the requirements prescribed in chapter 13, article 12 of this title and that is included in the Arizona dude ranch heritage trail program established by section 41-867 and that are valued at full cash value.

B. Subsection A, paragraphs 4 and 5 of this section do not limit eligibility for exemption from taxation under chapter 11, article 3 of this title.
A.R.S. § 42-3304 — Arizona Code / Title 42 / Chapter 3 / Article 7 / Section 3304
42-3304 Exemptions; rules
Status: in_force

42-3304. Exemptions; rules

A. The tax levied by this article does not apply to cigarettes, cigars, smoking tobacco, plug tobacco, snuff and other forms of tobacco:

1. For which the taxes imposed by article 6 of this chapter have been paid.

2. That are sold by an Indian tribe, or by a federally licensed Indian trader, on an Indian reservation to Indians who are enrolled members of the Indian tribe for whose benefit the Indian reservation was established.

3. That are exempt from tax under 26 United States Code section 5704 and that are distributed according to federal regulations.

B. The department shall adopt rules prescribing the procedures for claiming and verifying sales that are exempt under this section.
A.R.S. § 42-14501 — Arizona Code / Title 42 / Chapter 14 / Article 10 / Section 14501
42-14501 Definitions
Status: in_force

42-14501. Definitions

In this article, unless the context otherwise requires:

1. "Airport" means any area of land or water designed and set aside for the landing and taking off of aircraft and used, or to be used, in the interest of the public for those purposes.

2. "Airport fuel delivery company" means a company that meets all of the following requirements:

(a) The company is owned exclusively by a consortium of certified air carriers.

(b) The company is formed to provide its owners with jet fuel that is delivered by a fuel storage and hydrant delivery system at an airport in this state.

(c) The company is reimbursed by its owners for costs necessary for its operation.

(d) The company operates on a break-even cash accounting basis under which member contributions and other revenues are equal to the company's total costs of operation.
A.R.S. § 42-14151 — Arizona Code / Title 42 / Chapter 14 / Article 4 / Section 14151
42-14151 Annual determination of valuation; definition
Status: in_force

42-14151. Annual determination of valuation; definition

A. The department shall annually determine the valuation, in the manner prescribed by this article, of all property, owned or leased, and used by taxpayers in the following businesses:

1. Operation of a natural gas distribution system.

2. Operation of a water utility system.

3. Operation of a sewer system or wastewater treatment facility.

4. Operation of an electric generation facility.

5. Operation of an electric transmission or distribution system or an energy storage system.

B. For the purposes of this article, "generation of electricity" means the process of taking a source of energy, including coal, natural gas, oil, nuclear fuel or renewable sources and converting the energy into electricity to be delivered to customers through a transmission and distribution system.
A.R.S. § 42-5067 — Arizona Code / Title 42 / Chapter 5 / Article 2 / Section 5067
42-5067 Pipeline classification
Status: in_force

42-5067. Pipeline classification

A. The pipeline classification is comprised of the business of operating pipelines for transporting oil or natural or artificial gas through pipes or conduits from one point to another point in this state. The pipeline classification does not include sales of natural gas or liquefied petroleum gas used to propel a motor vehicle.

B. The tax base for the pipeline classification is the gross proceeds of sales or gross income derived from the business, but the taxpayer shall deduct from the tax base the gross proceeds of sales or gross income derived from pipeline services to:

1. Qualifying hospitals as defined in section 42-5001.

2. A qualifying health care organization as defined in section 42-5001 if the oil or gas is used by the organization solely to provide health and medical related educational and charitable services.
A.R.S. § 42-12102 — Arizona Code / Title 42 / Chapter 12 / Article 3 / Section 12102
42-12102 Application for classification as historic property; period of classification
Status: in_force

42-12102. Application for classification as historic property; period of classification

A. An owner of property who desires that it be classified as historic property for purposes of taxation shall:

1. Apply to the county assessor on forms that are approved by the department.

2. Consent in writing to allow the state historic preservation officer to view the property.

B. Applications shall be filed with the assessor during the valuation year preceding the first tax year for which classification is requested.

C. Classification as class six property under section 42-12006 may be granted only for the fifteen consecutive tax years immediately following the calendar year in which the application is filed. The assessor may accept an application by the owner during the final year of each fifteen year assessment period for continuation of the classification for a succeeding period of fifteen years.

D. Classification as class seven property under section 42-12007 or class eight property under section 42-12008 may be granted only for the ten consecutive tax years immediately following the calendar year in which the application is filed.

E. Within ten days after receiving each application, the county assessor shall refer the application to the state historic preservation officer.
A.R.S. § 42-1104 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1104
42-1104 Statute of limitation; exceptions
Status: in_force

42-1104. Statute of limitation; exceptions

A. For the taxes to which this article applies, every notice of every additional tax due shall be prepared on forms prescribed by the department and mailed within four years after the report or return is required to be filed or within four years after the report or return is filed, whichever period expires later.  For the purposes of this section, the requirement that the notice be mailed shall include methods allowed in lieu of mail under section 42-1108 or 42-1109.

B. The following are exceptions to the general rules prescribed by this section, and a deficiency assessment may be issued in any of the following cases:

1. The department may assess the tax or begin a proceeding in court for collecting the tax at any time:

(a) In the case of a false or fraudulent return with the intent to evade tax.

(b) In the case of failure to file a return for any tax administered under this title other than income tax and withholding tax.

(c) In the case of failure to file an income tax or withholding tax return if it is shown that the failure was due to an intent to evade tax.

2. If a taxpayer omits from gross income, gross receipts, gross proceeds of sales or Arizona adjusted gross income, as defined for purposes of chapter 5 of this title or title 43, an amount that is properly includible and that exceeds twenty-five percent of the amount of gross income stated in the return, the tax may be assessed at any time within six years after the return was filed.

3. If a taxpayer during a taxable year sells at a gain property used as the taxpayer's principal residence, the statutory period for assessing any deficiency attributable to any part of the gain does not expire before the expiration of four years after the date the taxpayer notifies the United States internal revenue service pursuant to the United States internal revenue code.

4. If a claim for credit or refund relates to an overpayment on account of the deductibility of a debt as one that became worthless, a loss from worthlessness of a security, an erroneous inclusion of an amount attributable to the recovery of a bad debt, prior tax or delinquency amount due to an adjustment of a bad debt deduction or a loss deduction from worthlessness of a security, the period of limitation is seven years after the date prescribed by law for filing the return for the year with respect to which the claim is made.

5. If a taxpayer fails to report a change or correction by the commissioner of internal revenue or other officer of the United States or other competent authority or fails to file an amended return as required by section 43-327, the department may assess any deficiency resulting from such adjustments within four years after the change, correction or amended return is reported to or filed with the United States internal revenue service regardless of any previous examinations by the department.

6. If a taxpayer is required to report a change or correction by the commissioner of internal revenue or other officer of the United States or other competent authority or to file an amended return as required by section 43-327 and does report the change or files the return, any deficiency resulting from the adjustments may be assessed within six months after the date the notice of amended return is filed with the department by the taxpayer, or within the period provided in subsection A of this section or paragraph 1 or 2 of this subsection, whichever period expires last.

7. Except as provided in paragraph 8 of this subsection, if a taxpayer agrees with the United States commissioner of internal revenue for an extension or renewals of the period for proposing and assessing deficiencies in federal income taxes for any year, the period for mailing a notice of a proposed income tax deficiency is four years after the return was filed or six months after the date of the expiration of the agreed period for assessing deficiencies in the federal income tax, whichever period expires later.

8. If a taxpayer agrees with the United States commissioner of internal revenue for a limited extension or renewals of the period for proposing and assessing deficiencies in federal income taxes for any year, then, solely with respect to those items specifically enumerated in this agreement, the period for mailing a notice of a proposed income tax deficiency, or claiming a refund, is four years after the return was filed or six months after the date of the expiration of the agreed period for assessing deficiencies in the federal income tax, whichever period expires later.

9. If, before the time prescribed for mailing a notice of a proposed deficiency assessment expires, the taxpayer consents in writing to an assessment after that time, the assessment may be made at any time before the period agreed on expires.  The period agreed on may be extended by subsequent written agreements made before the period previously agreed on expires.

10. If a taxpayer fails to file a report or return for income tax or withholding tax, the department may assess the tax within seven years after the date the report or return was required to be filed.

C. Notwithstanding subsection A of this section and subsection B, paragraphs 1 and 2 of this section, a taxpayer who has a duty to collect use tax shall not be assessed tax pursuant to chapter 5, article 4 of this title for any retail sales to purchasers who were licensed pursuant to section 42-5005 or registered pursuant to section 42-5154 and who filed use tax returns for the reporting period in which the sale was made, if the reporting period in which the sale was made is more than four years from the notice of proposed deficiency. If, before this time limitation expires, the taxpayer consents in writing to an assessment after that time for the transactions, a subsequent assessment may include any transaction within the agreed extended period. The period agreed to may be extended by subsequent written agreements made before the period previously agreed to expires.
A.R.S. § 42-17055 — Arizona Code / Title 42 / Chapter 17 / Article 2 / Section 17055
42-17055 Public inspection of values used in computing levy limitation
Status: in_force

42-17055. Public inspection of values used in computing levy limitation

A. On or before February 15 of the tax year, the governing body of each county, city, town, community college district and fire district shall make available for public inspection the values determined in each numbered paragraph of section 42-17051, subsection A and in section 48-807.

B. The property tax oversight commission shall not alter the values that have been determined and made available for public inspection under this section unless the county assessor transmits and certifies new values to the governing body. The new values shall be made available for public inspection on the request of any individual.
A.R.S. § 42-3455 — Arizona Code / Title 42 / Chapter 3 / Article 11 / Section 3455
42-3455 Cigarette tax stamps; description and characteristics; use by licensed distributors; affixation standards; metering
Status: in_force

42-3455. Cigarette tax stamps; description and characteristics; use by licensed distributors; affixation standards; metering

A. The department shall prescribe by rule or procedure the method and manner in which tax stamps are to be affixed to cigarettes and may provide for the cancellation of stamps.  In addition to any specifications provided under this article, the stamps shall also meet the requirements provided in section 42-3006.

B. Each roll or sheet of stamps for cigarettes that are required under this chapter shall have a separate serial number that is legible at the point of sale to the distributor. The department shall use the serial number to keep records of each distributor who purchases each roll or sheet of stamps. The department shall not sell stamps that have the same serial number to more than one distributor. The department may sell a partial roll or sheet of stamps to a distributor and shall retain the remainder of the roll or sheet to subsequently sell to the same distributor or shall destroy the remainder of the roll or sheet.

C. Only licensed distributors may purchase, obtain or affix cigarette stamps. Distributors shall not sell or provide stamps to any other distributor or person.  When affixing cigarette stamps to cigarettes, distributors shall ensure that the affixation method that is used maintains the legibility of the serial numbers on the stamps.

D. If, during compliance inspections of a distributor or retailer, the department discovers cigarette packages that appear not to be stamped in accordance with subsection C of this section and if the distributor or retailer has substantially complied with the other provisions of this chapter, the following shall be considered a properly stamped cigarette package:

1. A questioned individual cigarette package that does not have an affixed cigarette stamp containing a fully legible serial number but the legible digits of the serial number of the cigarette stamp on the questioned individual cigarette package match the corresponding digits of the serial numbers from other properly stamped cigarette packages that are packaged or shelved together with the questioned individual cigarette package.

2. A questioned individual cigarette package that is part of an originally unopened pallet, master carton or carton that contains other properly stamped cigarettes when the pallet, master carton or carton is subsequently opened during a compliance inspection by the department.

3. A questioned individual cigarette package if the distributor or retailer can demonstrate through books, records or other indicia to the satisfaction of the department that the questioned individual cigarette package was purchased as part of the same pallet, master carton or carton that contained properly stamped cigarette packages.

E. The department may authorize the use of a metering machine.  If the department authorizes the use of a metering machine, the department shall assign a unique meter impression number to each distributor and ensure that the impression is legible at the point of sale. The department shall keep records that indicate the assigned meter impression number for each distributor.
A.R.S. § 42-5069 — Arizona Code / Title 42 / Chapter 5 / Article 2 / Section 5069
42-5069 Commercial lease classification; definitions
Status: in_force

42-5069. Commercial lease classification; definitions

A. The commercial lease classification is comprised of the business of leasing for a consideration the use or occupancy of real property.

B. A person who, as a lessor, leases or rents for a consideration under one or more leases or rental agreements the use or occupancy of real property that is used by the lessee for commercial purposes is deemed to be engaged in business and subject to the tax imposed by article 1 of this chapter, but this subsection does not include leases or rentals of real property used for residential or agricultural purposes.

C. The commercial lease classification does not include:

1. Any business activities that are classified under the transient lodging classification.

2. Activities engaged in by the Arizona exposition and state fair board or county fair commissions in connection with events sponsored by those entities.

3. Leasing real property to a lessee who subleases the property if the lessee is engaged in business classified under the commercial lease classification or the transient lodging classification.

4. Leasing real property pursuant to a written lease agreement entered into before December 1, 1967. This exclusion does not apply to the businesses of hotels, guest houses, dude ranches and resorts, rooming houses, apartment houses, office buildings, automobile storage garages, parking lots or tourist camps, or to the extension or renewal of any such written lease agreement.

5. Leasing real property between affiliated companies, businesses, persons or reciprocal insurers.  For the purposes of this paragraph:

(a) "Affiliated companies, businesses, persons or reciprocal insurers" means the lessor holds a controlling interest in the lessee, the lessee holds a controlling interest in the lessor, affiliated persons hold a controlling interest in both the lessor and the lessee, or an unrelated person holds a controlling interest in both the lessor and lessee.

(b) "Affiliated persons" means members of an individual's family or persons who have ownership or control of a business entity.

(c) "Controlling interest" means direct or indirect ownership of at least eighty percent of the voting shares of a corporation or of the interests in a company, business or person other than a corporation.

(d) "Members of an individual's family" means the individual's spouse and brothers and sisters, whether by whole or half blood, including adopted persons, ancestors and lineal descendants.

(e) "Reciprocal insurers" has the same meaning prescribed in section 20-762.

6. Leasing real property for boarding horses.

7. Leasing or renting real property or the right to use real property at exhibition events in this state sponsored, operated or conducted by a nonprofit organization that is exempt from taxation under section 501(c)(3), 501(c)(4) or 501(c)(6) of the internal revenue code if the organization is associated with major league baseball teams or a national touring professional golfing association and no part of the organization's net earnings inures to the benefit of any private shareholder or individual. This paragraph does not apply to an organization that is owned, managed or controlled, in whole or in part, by a major league baseball team, or its owners, officers, employees or agents, or by a major league baseball association or professional golfing association, or its owners, officers, employees or agents, unless the organization conducted or operated exhibition events in this state before January 1, 2018 that were exempt from taxation under section 42-5073.

8. Leasing or renting real property or the right to use real property for use as a rodeo featuring primarily farm and ranch animals in this state sponsored, operated or conducted by a nonprofit organization that is exempt from taxation under section 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(7) or 501(c)(8) of the internal revenue code and no part of the organization's net earnings inures to the benefit of any private shareholder or individual.

9. Leasing or renting dwelling units, lodging facilities or trailer or mobile home spaces if the units, facilities or spaces are intended to serve as the principal or permanent place of residence for the lessee or renter or if the unit, facility or space is leased or rented to a single tenant thirty or more consecutive days.

10. Leasing or renting real property and improvements for use primarily for religious worship by a nonprofit organization that is exempt from taxation under section 501(c)(3) of the internal revenue code and no part of the organization's net earnings inures to the benefit of any private shareholder or individual.

11. Leasing, renting or granting the right to use real property to vendors or exhibitors by a trade or industry association that is a qualifying organization pursuant to section 513(d)(3)(C) of the internal revenue code for a period not to exceed twenty-one days in connection with an event that meets all of the following conditions:

(a) The majority of such vending or exhibition activities relate to the nature of the trade or business sponsoring the event.

(b) The event is held in conjunction with a formal business meeting of the trade or industry association.

(c) The event is organized by the persons engaged in the particular trade or industry.

12. Leasing, renting or granting the right to use real property for a period not to exceed twenty-one days by a coliseum, civic center, civic plaza, convention center, auditorium or arena owned by this state or any of its political subdivisions.

13. Leasing or subleasing real property used by a nursing care institution as defined in section 36-401 that is licensed pursuant to title 36, chapter 4.

14. Leasing or renting an eligible facility as defined in section 28-7701.

15. Granting or providing rights to real property that constitute a profit à prendre for the severance of minerals, including all rights to use the surface or subsurface of the property as is necessary or convenient to the right to sever the minerals. This paragraph does not exclude from the commercial lease classification leasehold rights to the real property that are granted in addition to and not included within the right of profit à prendre, but the tax base for the grant of such a leasehold right, if the gross income derived from the grant is not separately stated from the gross income derived from the grant of the profit à prendre, shall not exceed the fair market value of the leasehold rights computed after excluding the value of all rights under the profit à prendre. For the purposes of this paragraph, "profit à prendre" means a right to use the land of another to mine minerals, and carries with it the right of entry and the right to remove and take the minerals from the land and also includes the right to use the surface of the land as is necessary and convenient for exercise of the profit.

16. The leasing or renting of space to make attachments to utility poles as follows:

(a) By a person that is engaged in business under section 42-5063 or 42-5064 or that is a cable operator.

(b) To a person that is engaged in business under section 42-5063 or 42-5064 or that is a cable operator.

D. The tax base for the commercial lease classification is the gross proceeds of sales or gross income derived from the business, but reimbursements to the lessor for utility service shall be deducted from the tax base.

E. Notwithstanding section 42-1104, subsection B, paragraph 1, subdivision (b) and paragraph 2, the failure to file tax returns for the commercial lease classification that report gross income derived from any agreement that constitutes, in whole or in part, a grant of a right of profit à prendre for the severance of minerals does not constitute an exception to the general rule for the statute of limitations.

F. For the purposes of this section:

1. "Cable operator" has the same meaning prescribed in section 9-505 and includes a video service provider.

2. "Leasing" includes renting.

3. "Real property" includes any improvements, rights or interest in such property.

4. "Utility pole" means any wooden, metal or other pole used for utility purposes and the pole's appurtenances that are attached or authorized for attachment by the person controlling the pole.
A.R.S. § 42-6201 — Arizona Code / Title 42 / Chapter 6 / Article 5 / Section 6201
42-6201 Definitions
Status: in_force

42-6201. Definitions

In this article, unless the context otherwise requires:

1. "Government lessor" means a city, town, county or county stadium district.

2. "Government property improvement" means a building for which a certificate of occupancy has been issued, for which the title of record is held by a government lessor, that is situated on land for which the title of record is held by a government lessor or a political subdivision of this state and that is available for use for any commercial, residential rental or industrial purpose, including, but not limited to, office, retail, restaurant, service business, hotel, entertainment, recreational or parking uses.

3. "Gross building space" means the total floor area of a building measured from the exterior of the walls, but not including unenclosed areas.

4. "Prime lessee" means any person, partnership, corporation, company, limited liability company, joint venture or other organization or association that enters into a lease directly with a government lessor to develop or occupy for at least thirty consecutive days a government property improvement, regardless of whether the improvement is actually used by the prime lessee or by one or more sublessees.
A.R.S. § 42-19117 — Arizona Code / Title 42 / Chapter 19 / Article 3 / Section 19117
42-19117 Tax as debt against property owner; action to collect tax
Status: in_force

42-19117. Tax as debt against property owner; action to collect tax

A. The tax on personal property is a debt against the owner to whom the property is assessed and against the owner's successors and assigns.

B. At the request of the county treasurer, the county attorney shall bring an action against the owner to recover all or any part of the tax.

C. If the county treasurer or sheriff is unable to find sufficient personal property to pay the tax and costs that are assessed to the owner, and the owner or the owner's successors or assigns refuses or fails to pay the tax or to surrender property sufficient for that purpose, the county treasurer shall bring an action in court pursuant to section 12-163, subsection B, against the owner and the owner's successors and assigns, or any of them, for collection of the tax and costs.

D. Personal judgment may be rendered against any or all defendants.
A.R.S. § 42-16055 — Arizona Code / Title 42 / Chapter 16 / Article 2 / Section 16055
42-16055 Ruling on petition
Status: in_force

42-16055. Ruling on petition

A. In all cases the assessor shall consider the petition and shall rule on each petition filed under this article by August 15 of each year.

B. In considering a petition filed under this article the assessor shall consider the valuation fixed by the assessor on other similar property that is similarly situated.
A.R.S. § 42-16210 — Arizona Code / Title 42 / Chapter 16 / Article 5 / Section 16210
42-16210 Payment of tax
Status: in_force

42-16210. Payment of tax

A. All taxes levied and assessed against property for the year on which an appeal has been filed by the property owner shall be paid before they become delinquent.

B. If the taxes are not paid before becoming delinquent, the court shall dismiss the appeal except when either of the following occur:

1. The full year tax for the year is paid on or before December 31 of the tax year pursuant to section 42-18053.

2. The remaining one-half tax that is unpaid is delinquent after the immediately following May 1 at 5:00 p.m. is paid by July 1, including all interest due.
A.R.S. § 42-18057 — Arizona Code / Title 42 / Chapter 18 / Article 2 / Section 18057
42-18057 Payment of tax by part owner; lien for contribution; allocation of tax lien in event of parcel split or consolidation
Status: in_force

42-18057. Payment of tax by part owner; lien for contribution; allocation of tax lien in event of parcel split or consolidation

A. If a parcel of real property is assessed in its entirety to one or more persons and part of the property belongs to another person who does not appear on the assessment roll:

1. That person may pay a portion of the whole tax in proportion to the person's interest in the property.

2. The county treasurer shall receive the tax and give a receipt to the person, subject to section 42-18055, subsection C, showing what part of the tax was paid.

B. A person who pays the tax on the whole parcel of which the person is a part owner has a lien on the share of the other part owner for that portion of the tax that was paid, with interest. The person may enforce the lien in the same manner as any other lien.

C. After the tax roll is delivered to the county treasurer pursuant to section 42-18003 and after all other means to allocate taxes among parties have been exhausted, the county treasurer may allocate the tax due for parcels of real property that were split or consolidated after September 30 of the valuation year as follows:

1. The allocation of the tax to the parcel or parcels shall be in equitable proportions.

2. There shall be no change in the total valuation or classification of the property as determined by the assessor.

3. The total primary and secondary taxes of the new parcel or parcels must be the same as the primary and secondary taxes assessed to the original parcel or parcels.

4. The county treasurer shall apportion the new tax amounts among the taxing authorities in the same manner that applied to the original parcel or parcels before being split or consolidated.
A.R.S. § 42-19051 — Arizona Code / Title 42 / Chapter 19 / Article 2 / Section 19051
42-19051 Administrative review of valuation or classification by assessor
Status: in_force

42-19051. Administrative review of valuation or classification by assessor

A. The owner of property that is valued by the assessor or the person in whose possession it is found may appeal to the assessor within thirty days after the date the notice was delivered by filing a petition with the assessor on a form prescribed by the department. The petition shall set forth in writing:

1. The owner's opinion of the value or legal classification of the property.

2. Substantial information that justifies the opinion of value or legal classification in order for the assessor to consider the information for the purpose of basing a change in the valuation or legal classification.

B. The assessor shall rule on each petition within twenty days after it is filed.

C. The notice provided under this section shall be in the same manner as prescribed in section 42-16056.

D. If the request of the petitioner is denied, in whole or in part, the assessor shall deliver to the petitioner written notice of the grounds for refusing to grant the request contained in the petition.
A.R.S. § 42-11007 — Arizona Code / Title 42 / Chapter 11 / Article 1 / Section 11007
42-11007 Evidentiary value of records
Status: in_force

42-11007. Evidentiary value of records

Each of the following documents and entries are prima facie evidence of the facts stated in them:

1. The entries made in the county treasurer's records.

2. The records of the county board of supervisors.

3. The valuations and roll and the accompanying resolutions.

4. The delinquent list or a certified copy of the delinquent list.
A.R.S. § 42-2152 — Arizona Code / Title 42 / Chapter 2 / Article 4 / Section 2152
42-2152 List of agencies having authority over starting and conducting business
Status: in_force

42-2152. List of agencies having authority over starting and conducting business

The department of revenue shall:

1. Obtain and keep on file a list of the agencies, boards, commissions and departments, their addresses and telephone numbers and the subjects over which they have authority.

2. Provide a copy of this list to any person requesting a form under section 42-2151.

3. On request, provide any person with copies of any of the forms commonly in use which it has on file.
A.R.S. § 42-5123 — Arizona Code / Title 42 / Chapter 5 / Article 3.1 / Section 5123
42-5123 Records of transaction
Status: in_force

42-5123. Records of transaction

Nonaffiliated Indians and non-Indian vendors shall maintain sufficient documentation of their taxable and nontaxable gross proceeds and gross income, under any method of recording that properly reflects such taxable and nontaxable gross proceeds and gross income, to enable the department to determine which transactions are subject to transaction privilege tax. Any gross proceeds and gross income that cannot be identified as nontaxable is considered taxable.
A.R.S. § 42-19006 — Arizona Code / Title 42 / Chapter 19 / Article 1 / Section 19006
42-19006 Notice of valuation
Status: in_force

42-19006. Notice of valuation

A. On or before August 30 the assessor shall mail a notice of valuation, in the form prescribed by the department, to either:

1. The owner of the personal property, if known.

2. The person in whose possession it is found at the time of valuation.

B. The owner or person in possession of the property may petition the assessor for review pursuant to section 42-19051.
A.R.S. § 42-3462 — Arizona Code / Title 42 / Chapter 3 / Article 11 / Section 3462
42-3462 Cigarette and roll-your-own tobacco; filing requirements; definition
Status: in_force

42-3462. Cigarette and roll-your-own tobacco; filing requirements; definition

A. Each distributor shall file a return in a form prescribed by the department for each place of business on or before the twentieth day of the month next succeeding the month for which the return is filed. The return shall contain all of the following:

1. The brand names and quantities of each brand of cigarettes and roll-your-own tobacco in possession at the beginning and end of the reporting period.

2. The brand names and quantities of each brand of cigarettes and roll-your-own tobacco received during the reporting period and the name and address of each person from whom each product was received.

3. The brand names and quantities of each brand of cigarettes and roll-your-own tobacco distributed or shipped into this state or between locations in this state during the reporting period, except for sales directly to consumers, and the name and address of each person to whom each product was distributed or shipped, with reference to the dates of distribution or shipment and corresponding invoice numbers from the invoices documenting the distribution or shipments.

4. The brand names and quantities of each brand of cigarettes and roll-your-own tobacco distributed or shipped to any destination wherever located, including the quantities reported under paragraph 3 of this subsection during the reporting period, except for sales directly to consumers, and the name and address of each person to whom each product was distributed or shipped, with reference to the dates of distribution or shipment and corresponding invoice numbers from the invoices documenting the distribution or shipments.

5. The brand names and quantities of each brand of cigarettes and roll-your-own tobacco sold to consumers that are itemized to show sales to consumers in this state and sale to consumers outside of this state.

6. Copies of the customs certificates with respect to such cigarettes and roll-your-own tobacco required to be submitted by 19 United States Code section 1681a(c).

7. The name and address of each nonparticipating manufacturer of each brand of cigarettes and roll-your-own tobacco identified by the distributor in the return.

8. The number of individual cigarettes and ounces of roll-your-own tobacco of each brand of each nonparticipating manufacturer sold in this state by the distributor during the preceding month, separately stating each of the following:

(a) The number of cigarette packages sold and the number of individual cigarettes in each package.

(b) The number of roll-your-own tobacco containers sold and the number of ounces of roll-your-own tobacco in each container.

9. The amount of luxury taxes paid or to be paid on the cigarettes and roll-your-own tobacco prescribed in paragraph 8 of this subsection, separately stating each of the following:

(a) The amount of luxury taxes paid by purchasing and affixing tax stamps to cigarette packages.

(b) The amount of luxury taxes to be paid for roll-your-own tobacco containers.

(c) Any other amount of excise taxes to be paid on the cigarettes.

10. The number of individual cigarettes and ounces of roll-your-own tobacco of each brand of each nonparticipating manufacturer received by the distributor, separately stating each of the following:

(a) The number of cigarette packages received and the number of individual cigarettes in each package.

(b) The number of roll-your-own tobacco containers received and the number of ounces of roll-your-own tobacco in each container.

11. The number of individual cigarettes and ounces of roll-your-own tobacco of each brand of each nonparticipating manufacturer that the distributor exported from this state without payment of Arizona luxury taxes, separately stating each of the following:

(a) The number of cigarette packages exported and the number of individual cigarettes in each package.

(b) The number of roll-your-own tobacco containers exported and the number of ounces of roll-your-own tobacco in each container.

12. The number of individual cigarettes and ounces of roll-your-own tobacco of each brand of each nonparticipating manufacturer for which the distributor obtained a refund under section 42-3008, separately stating each of the following:

(a) The number of cigarette packages for which the distributor obtained a refund and the number of individual cigarettes in each package.

(b) The number of roll-your-own tobacco containers for which the distributor obtained a refund and the number of ounces of roll-your-own tobacco in each container.

13. The invoice, in the form and manner prescribed by the department, for the following transactions:

(a) The distributor's purchase or acquisition of any nonparticipating manufacturer's cigarettes received or sold by the tobacco distributor in this state.

(b) The distributor's export, if any, of any nonparticipating manufacturer's cigarettes from this state.

B. Any person who sells, ships or transfers cigarettes and roll-your-own tobacco into or within this state shall file a monthly report with the department on the tenth day of each month after the sale, shipment or transfer in the form and manner prescribed by section 42-3053, subsection C. The report shall contain information regarding each shipment of cigarettes and roll-your-own tobacco into or within this state during the previous calendar month, including the date of shipment, the name and address of the person to whom the shipment was made and the name, address and telephone number of the person or service delivering the shipment to the recipient on behalf of the seller.  The report shall also include the brand names and quantities of cigarettes and roll-your-own tobacco contained in each shipment, with invoices or references to invoice number documenting each shipment.

C. Distributor reports that are submitted under subsection A of this section shall be itemized to disclose the quantity of reported cigarettes bearing tax stamps of this state, tax exempt stamps of this state, stamps of another state and unstamped cigarettes.  The distributor reports shall also include, if applicable, the following:

1. The quantity of Arizona tax and tax exempt stamps that were not affixed to cigarettes.

2. The quantity of Arizona tax and tax exempt stamps that the distributor possessed at the beginning and end of the reporting period.

3. The quantity of each type of Arizona stamp received during the reporting period.

4. The quantity of each type of Arizona stamp applied during the reporting period.

D. The department may adopt rules requiring additional information in the monthly reports as necessary for the purposes of enforcing this article.

E. For the purposes of this section, "manufacturer" has the same meaning prescribed in section 42-3451.
A.R.S. § 42-3371 — Arizona Code / Title 42 / Chapter 3 / Article 9 / Section 3371
42-3371 Levy and collection of tax on cigarettes, cigars and other forms of tobacco
Status: in_force

42-3371. Levy and collection of tax on cigarettes, cigars and other forms of tobacco

(Caution:  1998 Prop. 105 applies)

In addition to all other taxes, there is levied and shall be collected by the department in the manner provided by this chapter, on all cigarettes, cigars, smoking tobacco, plug tobacco, snuff and other forms of tobacco the following tax:

1. On each cigarette, four cents.

2. On smoking tobacco, snuff, fine cut chewing tobacco, cut and granulated tobacco, shorts and refuse of fine cut chewing tobacco, and refuse, scrubs, clippings, cuttings and sweepings of tobacco, excluding tobacco powder or tobacco products used exclusively for agricultural or horticultural purposes and unfit for human consumption, 9 cents per ounce or major fraction of an ounce.

3. On all cavendish, plug or twist tobacco, 2.2 cents per ounce or fractional part of an ounce.

4. On each twenty small cigars or fractional part weighing not more than three pounds per thousand, 17.8 cents.

5. On cigars of all descriptions except those included in paragraph 4, made of tobacco or any tobacco substitute:

(a) If manufactured to retail at not more than five cents each, 8.8 cents on each three cigars.

(b) If manufactured to retail at more than five cents each, 8.8 cents on each cigar.
A.R.S. § 42-6012 — Arizona Code / Title 42 / Chapter 6 / Article 1 / Section 6012
42-6012 Municipal transaction privilege tax; sales of electricity, natural gas or liquefied petroleum gas
Status: in_force

42-6012. Municipal transaction privilege tax; sales of electricity, natural gas or liquefied petroleum gas

A city or town that levies a transaction privilege, sales, gross receipts, use, franchise or other similar fee or tax, however denominated, on the business of producing, providing or furnishing electricity, electric lights, current, power, natural gas or liquefied petroleum gas shall either tax or exempt in whole the gross proceeds of sales or gross income from sales by those businesses to either of the following businesses:

1. A qualified manufacturing or smelting business located in that city or town.  A utility that claims this deduction shall report each month, on a form prescribed by the department, the name and address of each qualified manufacturing or smelting business for which this deduction is taken.  This paragraph applies to gas transportation services. For the purposes of this paragraph:

(a) "Gas transportation services" means the services of transporting natural gas to a natural gas customer or to a natural gas distribution facility if the natural gas was purchased from a supplier other than the utility.

(b) "Manufacturing" means the performance as a business of an integrated series of operations that places tangible personal property in a form, composition or character different from that in which it was acquired and transforms it into a different product with a distinctive name, character or use. Manufacturing does not include processing, fabricating, job printing, mining, generating electricity or operating a restaurant.

(c) "Qualified manufacturing or smelting business" means one of the following:

(i) A business that manufactures or smelts tangible products in this state, of which at least fifty-one percent of the manufactured or smelted products will be exported out of state for incorporation into another product or sold out of state for a final sale.

(ii) A business that derives at least fifty-one percent of its gross income from the sale of manufactured or smelted products manufactured or smelted by the business.

(iii) A business that uses at least fifty-one percent of its square footage in this state for manufacturing or smelting and business activities directly related to manufacturing or smelting.

(iv) A business that employs at least fifty-one percent of its workforce in this state in manufacturing or smelting and business activities directly related to manufacturing or smelting.

(v) A business that uses at least fifty-one percent of the value of its capitalized assets in this state, as reflected on the business's books and records, for manufacturing or smelting and business activities directly related to manufacturing or smelting.

(d) "Smelting" means to melt or fuse a metalliferous mineral, often with an accompanying chemical change, usually to separate the metal.

2. Businesses that operate an international operations center in this state and that are certified by the Arizona commerce authority pursuant to section 41-1520.
A.R.S. § 42-13402 — Arizona Code / Title 42 / Chapter 13 / Article 9 / Section 13402
42-13402 Identifying common areas; definition
Status: in_force

42-13402. Identifying common areas; definition

A. The county assessor shall identify common areas for valuation under this article.

B. In general, common areas consist of improved or unimproved real property that is intended for the use of owners and residents of a residential subdivision or development and invited guests of the owners or residents and include common beautification areas and common areas used as an airport.  Areas that do not qualify as common areas shall be valued using standard appraisal techniques. The following are not considered to be common areas:

1. Common elements of a condominium, as defined in section 33-1202.

2. A golf course, as defined in section 42-13151 and valued pursuant to article 4 of this chapter.

C. Property must meet all of the following requirements to be considered a common area:

1. The property must be owned by a nonprofit homeowners' association, community association or corporation.

2. The association or corporation must be organized and operated to provide for the maintenance and management of the common area property.

3. All residential property owners in the development must be required to be and must actually be members of the association or corporation, or must be obligated to pay mandatory assessments to maintain and manage the common areas.

4. All members of the association or residential property owners in the development, their immediate families and, if provided by rules of the association or corporation, guests must have a right to use and enjoy the common areas.  This right must be appurtenant to and pass with title to each lot and parcel. The association or corporation may assess fees for particular uses of individual common areas.

5. The common areas must be deeded to the association or corporation.

D. For purposes of this section "airport" means runways and taxiways that are used primarily by residents of the residential subdivision but that may be designated as a reliever airport by the federal aviation administration and that receives no public funding.
A.R.S. § 42-1116 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1116
42-1116 Disposition of tax revenues
Status: in_force

42-1116. Disposition of tax revenues

A. The department of revenue shall promptly deposit, pursuant to sections 35-146 and 35-147, all monies it collects from the taxes administered pursuant to this article except the telecommunication services excise tax, separately accounting for each type of tax and each tax classification within each type of tax. At the same time the department of revenue shall also furnish copies of the transmittal schedules to the director of the department of administration.

B. Except as provided by subsections C and D of this section, the department shall deposit all monies and remittances received under this section to the credit of the following specific funds and accounts:

1. Amounts sufficient to meet the requirements for tax refunds to the tax refund account established by section 42-1117.

2. Amounts sufficient to meet the requirements of urban revenue sharing to the urban revenue sharing fund established by section 43-206.

3. Amounts collected pursuant to chapter 5, articles 1 and 5 of this title to the transaction privilege and severance tax clearing account established by section 42-5029.

4. Amounts sufficient to meet the requirements of section 42-3104 to the corrections fund.

5. Amounts sufficient to meet the requirements of section 49-282, subsection B relating to the water quality assurance revolving fund.

6. All remaining monies to the state general fund.

C. From the monies and remittances received under this section, each month beginning July 2001 the state treasurer shall transmit to the tourism and sports authority, established by title 5, chapter 8, for deposit in its facility revenue clearing account established by section 5-834 one-twelfth of the amount reported by the department pursuant to section 43-209, subsection C.

D. Subject to section 48-4238, from the monies and remittances received under this section, each year beginning January 1, 2026 through  December 31, 2056, the state treasurer, on instruction from the department, shall transmit eighty-two percent of the amount reported by the department pursuant to section 43-209, subsection D for the prior taxable year to the county stadium district established pursuant to title 48, chapter 26 for deposit in the county stadium district fund established pursuant to section 48-4231.
A.R.S. § 42-19118 — Arizona Code / Title 42 / Chapter 19 / Article 3 / Section 19118
42-19118 Clearing uncollectible tax
Status: in_force

42-19118. Clearing uncollectible tax

A. If the county treasurer, sheriff and county attorney are unable to locate both the personal property on which taxes have been assessed and the person owning the property or the owner's successors or assigns, after diligent search by the sheriff, the tax may be declared uncollectible pursuant to this section.

B. The county treasurer shall:

1. Prepare and submit to the board of supervisors a certificate of clearance stating:

(a) The name of the person who is liable for the tax.

(b) A description of the property.

(c) The tax roll number.

(d) The delinquent date of the tax.

(e) The year and the amount of tax, interest and penalty involved.

(f) The extent of any lien on the property.

2. Submit an affidavit from the sheriff stating that after a diligent search both the property and the person owning the property or the person's successors or assigns have not been located.

C. On being satisfied that the tax is uncollectible, the board of supervisors may approve the certificate of clearance.

D. On approval of the certificate, the treasurer shall:

1. Delete from the treasurer's records the tax, interest and penalty covered by the certificate.

2. Make a notation in the records that the deletion was made pursuant to the approval of a certificate of clearance together with the number and date of the certificate.

E. If the property or the person who owns the property or the owner's successors or assigns are located after the approval of the certificate of clearance, the county treasurer may reinstate and collect the taxes, penalties and interest as if there had been no approval of the certificate.
A.R.S. § 42-11127 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11127
42-11127 Exempt personal property
Status: in_force

42-11127. Exempt personal property

A. Pursuant to article IX, section 2, subsection  F, Constitution of Arizona, personal property that is class two property pursuant to section 42-12002, paragraph 2, subdivision (a) or (b) and that is used for agricultural purposes or personal property that is class one property pursuant to section 42-12001 and that is used in a trade or business as described in section 42-12001, paragraphs 8 through 11 or 13 is exempt from taxation up to a maximum amount of $500,000 of full cash value for each taxpayer.

B. On or before December 31 of each year, the department shall increase the maximum amount of the exemption for the following tax year based on the percentage increase, if any, in the employment cost index for total compensation for private industry workers in the two most recent complete state fiscal years. For the purposes of this subsection, "employment cost index" means the average of the employment cost indices reported by the United States department of labor, bureau of labor statistics or its successor for the eight quarters of the two most recent state fiscal years.
A.R.S. § 42-5401 — Arizona Code / Title 42 / Chapter 5 / Article 9 / Section 5401
42-5401 Definitions
Status: in_force

42-5401. Definitions

In this article, unless the context otherwise requires:

1. "Consumer" means a person who purchases prepaid wireless telecommunications service in a retail sale of prepaid wireless telecommunications service.

2. "Prepaid wireless telecommunications service" means a commercial mobile radio service, as defined by 47 Code of Federal Regulations section 20.3, as amended, that allows a caller to dial 911 to access the 911 system under a service that is paid for in advance and that is sold in predetermined units or dollars of which the number declines with use in a known amount.

3. "Prepaid wireless telecommunications service provider" means a person that provides prepaid wireless telecommunications service pursuant to a license that is issued by the federal communications commission.

4. "Retail sale of prepaid wireless telecommunications service" means a sale of prepaid wireless telecommunications service by a seller for any purpose other than resale.

5. "Seller" means a person who sells prepaid wireless telecommunications service to another person.

6. "Wireless services" means a commercial mobile service, as defined by 47 Code of Federal Regulations section 20.3, as amended.
A.R.S. § 42-5453 — Arizona Code / Title 42 / Chapter 5 / Article 10 / Section 5453
42-5453 Return statement and payment by marijuana establishment; penalty; interest; rules; confidential information
Status: in_force

42-5453. Return statement and payment by marijuana establishment; penalty; interest; rules; confidential information

(Caution:  1998 Prop. 105 applies)

A. The tax imposed by this article is due and payable, together with a return statement prescribed by the department, for each month on or before the twentieth day of the succeeding month.

B. A marijuana establishment that fails to pay the tax imposed by this article within ten days after the date the payment is due is subject to and shall pay a penalty determined under section 42-1125, plus interest at the rate determined pursuant to section 42-1123, from the time the tax was due and payable until paid.  The department may waive any penalty or interest if it determines that the marijuana establishment has made a good faith attempt to comply with the requirements of this article.

C. The monthly return statement prescribed by the department shall include an accounting of the quantity of marijuana that is sold by a marijuana establishment that is subject to the tax imposed by this article during the tax month.

D. All penalties and interest collected pursuant to this section shall be deposited in the smart and safe Arizona fund established by section 36-2856.

E. The department may adopt rules that are necessary or convenient to enforce this article, except that those rules may not conflict with title 36, chapter 28.2.

F. The department may share confidential information as defined in section 42-2001 with the department of health services for its use in determining whether a marijuana establishment, marijuana testing facility or dual licensee is in compliance with tax obligations under this title or title 43.
A.R.S. § 42-16214 — Arizona Code / Title 42 / Chapter 16 / Article 5 / Section 16214
42-16214 Refund or credit of excess payments
Status: in_force

42-16214. Refund or credit of excess payments

A. If judgment is awarded to a taxpayer who paid the taxes to the county treasurer:

1. The county treasurer of the county in which the property is located shall pay the judgment out of monies collected from property taxes during the next fiscal year, unless there are sufficient amounts available in funds budgeted for that purpose by the county to allow an immediate refund, or, if both parties agree, the amount of the judgment may be credited toward any taxes that may be remaining due on the property that is the subject of the appeal, subject in either case to the approval of the board of supervisors.

2. The amount of the judgment shall be subtracted from the amounts due to taxing jurisdictions in the next fiscal year in proportion to the amount each received from the appellant's overpayment of taxes. The affected taxing jurisdictions shall include in their budgets for the next fiscal year the proportional amount of the judgment for which each is liable. Any increase in the budget because of the portion of the judgment being included is not subject to any budget limitation that may be prescribed by law.

3. Interest at the legal rate on the overpayment or underpayment is payable from the date of overpayment or underpayment. For the purpose of computing interest under the judgment, if the tax was paid in installments, a pro rata share of the total overpayment or underpayment is considered to be attributable to each installment.  For the purposes of this paragraph, "legal rate" means the rate set by the department as prescribed by section 42-1123.

B. A judgment in favor of an appellant who paid the taxes to the department shall be paid from the state general fund.
A.R.S. § 42-5043 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5043
42-5043 Liability; marketplace facilitators; remote sellers; refund claims; audits; definition
Status: in_force

42-5043. Liability; marketplace facilitators; remote sellers; refund claims; audits; definition

A. A marketplace facilitator is not liable for failing to pay the correct amount of transaction privilege tax for a marketplace seller's sales through the marketplace facilitator's marketplace to the extent that the marketplace facilitator demonstrates any of the following to the satisfaction of the department:

1. The failure to pay the correct amount of tax was due to incorrect information given to the marketplace facilitator by the marketplace seller, and the marketplace facilitator and the marketplace seller are not affiliated persons.

2. The marketplace facilitator and the marketplace seller are not affiliated persons, and the failure to pay the correct amount of tax was due to an error other than an error in sourcing the sale under section 42-5040.

B. The liability relief provided in subsection A, paragraph 2 of this section may not exceed the following:

1. For calendar year 2019, five percent of the total tax due under this chapter on taxable sales facilitated by the marketplace facilitator on behalf of a marketplace seller and sourced to this state under section 42-5040 during the same calendar year.

2. For calendar year 2020, three percent of the total tax due under this chapter on taxable sales facilitated by the marketplace facilitator on behalf of a marketplace seller and sourced to this state under section 42-5040 during the same calendar year.

3. For calendar year 2021 and each calendar year thereafter, zero percent of the total tax due under this chapter on taxable sales facilitated by the marketplace facilitator on behalf of a marketplace seller and sourced to this state under section 42-5040 during the same calendar year.

C. A remote seller is not liable for failing to pay the correct amount of transaction privilege tax if failure to pay the correct amount of tax was due to an error other than an error in sourcing the sale under section 42-5040.  The liability relief provided in this subsection may not exceed the following:

1. For calendar year 2019, five percent of the total tax due under this chapter on taxable sales sourced to this state under section 42-5040 during the same calendar year.

2. For calendar year 2020, three percent of the total tax due under this chapter on taxable sales sourced to this state under section 42-5040 during the same calendar year.

3. For calendar year 2021 and each calendar year thereafter, zero percent of the total tax due under this chapter on taxable sales sourced to this state under section 42-5040 during the same calendar year.

D. The department may waive penalties and interest if the marketplace facilitator or remote seller seeks liability relief, the department rules that reasonable cause exists and the marketplace facilitator paid tax on sales facilitated for a marketplace seller during the period for which relief is sought or the remote seller paid tax on sales during the period for which relief is sought.

E. The department may determine the manner in which a marketplace facilitator or remote seller may claim the liability relief provided for in this section.

F. Refund claims related to an overpayment of transaction privilege tax collected by a marketplace facilitator shall be filed as prescribed by section 42-1118. If a refund claim is denied, the claimant may appeal the denial pursuant to chapter 1, article 6 of this title.

G. An audit of a marketplace facilitator may not automatically cause an audit of a marketplace seller.

H. For the purposes of this section, "affiliated person" means a person that, with respect to another person, either:

1. Has an ownership interest of more than five percent, whether direct or indirect, in that other person.

2. Is related to the other person because a third person, or a group of third persons that are affiliated persons with respect to each other, holds an ownership interest of more than five percent, whether direct or indirect, in the related persons.
A.R.S. § 42-18060 — Arizona Code / Title 42 / Chapter 18 / Article 2 / Section 18060
42-18060 Lien of fiduciary paying tax
Status: in_force

42-18060. Lien of fiduciary paying tax

If the tax on property is assessed to a person as agent for another, or in a representative capacity, that person has a lien on that property or any property of the principal in the fiduciary's possession until the fiduciary is indemnified against the tax payment, or if the fiduciary has paid the tax, until the fiduciary is reimbursed for the payment.
A.R.S. § 42-5102 — Arizona Code / Title 42 / Chapter 5 / Article 3 / Section 5102
42-5102 Tax exemption for sales of food; nonexempt sales
Status: in_force

42-5102. Tax exemption for sales of food; nonexempt sales

A. Except for the gross proceeds of sales or gross income from the sale of food for consumption on the premises, the taxes imposed by this chapter do not apply to the gross proceeds of sales or gross income from sales of food by any of the following:

1. A retailer who conducts an eligible grocery business.

2. A retailer who conducts a business whose primary business is not the sale of food but who sells food which is displayed, packaged and sold in a similar manner as an eligible grocery business.

3. A retailer who sells food and does not provide or make available any facilities for the consumption of food on the premises.

4. A retailer who conducts a delicatessen business either from a counter which is separate from the place and cash register where taxable sales are made or from a counter which has two cash registers which are used to record taxable and tax exempt sales or a retailer who conducts a delicatessen business and who uses a cash register which has at least two tax computing keys which are used to record taxable and tax exempt sales.

5. A retailer who is a street or sidewalk vendor and who uses a pushcart.

6. Vending machines and other types of automatic retailers.

B. The taxes imposed by this chapter do not apply to the gross proceeds of sales or gross income from sales of food by a state university or community college or its designee on its campuses to students using a validated meal ticket or to patients purchasing or consuming food at the Arizona health sciences center.

C. The taxes imposed by this chapter do not apply to the gross proceeds of sales or gross income from sales of food by a retailer to:

1. A regularly organized private or parochial school that offers an educational program for grade twelve or under which may be attended in substitution for a public school pursuant to section 15-802.

2. A child care facility that is licensed under section 36-882 or a child care group home certified under section 36-897.01.

3. A facility which provides on a regular basis care and supervision of persons who, because of age or a mental or physical condition, are incapable of caring for themselves and where they are unaccompanied by their custodians or guardians for periods of less than twenty-four hours a day.

4. An organization which is tax exempt under section 501(c)(3) of the internal revenue code and which provides the articles to persons with a nominal charge or without a monetary charge.

5. A prison, jail or other institution under the jurisdiction of the state department of corrections, the department of public safety, the department of juvenile corrections or a county sheriff for consumption on the premises.

D. Notwithstanding subsection A of this section, the taxes imposed by this chapter do not apply to the gross proceeds of sales or gross income from sales of low or reduced cost articles of food or drink to eligible elderly or homeless persons or persons with a disability by a business subject to tax under section 42-5074 that contracts with the department of economic security and that is approved by the food and nutrition service of the United States department of agriculture pursuant to the supplemental nutrition assistance program established by the food and nutrition act of 2008 (P.L. 110-246; 122 Stat. 1651; 7 United States Code sections 2011 through 2036a), if the purchases are made with the benefits issued pursuant to the supplemental nutrition assistance program.
A.R.S. § 42-5002 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5002
42-5002 Exclusions from gross income, receipts or proceeds
Status: in_force

42-5002. Exclusions from gross income, receipts or proceeds

A. For the purpose of this article the total amount of gross income, gross receipts or gross proceeds of sales shall be deemed to be the amount received, exclusive of:

1. The taxes imposed by this chapter and chapter 6, article 3 of this title, sales or transaction privilege taxes imposed by municipalities in this state and sales or transaction privilege taxes imposed in this state by Indian tribes, if the Indian tribal tax is imposed with respect to sales by non-Indian or nonaffiliated Indian vendors to nonmembers of the tribe. A person who imposes an added charge to cover the tax levied by this article or which is identified as being imposed to cover transaction privilege tax shall not remit less than the amount so collected to the department.

2. Freight costs billed to and collected from a purchaser by a retailer for tangible personal property which, upon the order of the retailer, is shipped directly from a manufacturer or wholesaler to the purchaser.

B. For the purposes of this article the total amount of gross income, gross receipts or gross proceeds of sales for nuclear fuel shall be deemed to be the value of the purchase price of uranium oxide used in producing the fuel. The tax imposed by this article may be imposed only once for any one quantity or batch of nuclear fuel regardless of the number of transactions or financing arrangements which may occur with respect to that nuclear fuel.
A.R.S. § 42-5015 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5015
42-5015 Filing by electronic means
Status: in_force

42-5015. Filing by electronic means

A taxpayer who is required to pay any transaction privilege and affiliated excise taxes to this state or a county or municipality may report and pay the required tax through electronic means.  The electronic system shall be administered by the department of revenue.  The department may enter into an agreement with the cities and towns that did not have an intergovernmental contract or agreement in effect as of January 1, 2013 with the department to provide for unified or coordinated licensing, collection and auditing programs for the cities and towns to contribute to the payment of the electronic system through money or resources. The electronic system shall:

1. Include a single point for licensing, filing a single return and paying transaction privilege and affiliated excise taxes for all state, county and municipal taxing jurisdictions.

2. Consolidate data in a manner compatible with the data systems of the department of revenue.

3. Capture data with sufficient specificity to meet the needs of the taxing jurisdictions.

4. Allow for identification of the correct taxing jurisdictions and tax rates based on the place where the transaction is sourced.
A.R.S. § 42-5010.01 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5010.01
42-5010.01 Transaction privilege tax; additional rate increment
Status: in_force

42-5010.01. Transaction privilege tax; additional rate increment

A. From and after June 30, 2021 through June 30, 2041, in addition to the rates prescribed by section 42-5010, subsection A, an additional rate increment is imposed and shall be collected. The additional tax rate increment is levied at the rate of six-tenths of one percent of the tax base of every person engaging or continuing in this state in a business classification listed in section 42-5010, subsection A, paragraph 1.

B. The taxpayer shall pay taxes pursuant to this section at the same time and in the same manner as under section 42-5010, subsection A. The department shall separately account for the revenues collected with respect to the rates imposed by this section, and the state treasurer shall distribute all of those revenues in the manner prescribed by section 42-5029.02.  The rates imposed by this section are not considered local revenues for purposes of article IX, section 21, Constitution of Arizona.
A.R.S. § 42-5019 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5019
42-5019 Reporting sales made in more than one class
Status: in_force

42-5019. Reporting sales made in more than one class

A person engaged in any business in which sales are made on which the same rate does not apply, or in two or more businesses with respect to which the rate to be applied is not the same, shall make separate returns of the gross proceeds of sales or the gross income of each business separately classified.
A.R.S. § 42-5157 — Arizona Code / Title 42 / Chapter 5 / Article 4 / Section 5157
42-5157 Motor vehicles removed from inventory; service vehicles
Status: in_force

42-5157. Motor vehicles removed from inventory; service vehicles

A. The tax imposed by this article on motor vehicles that are removed from inventory by a motor vehicle dealer as defined in section 28-4301, that are used directly in the conduct of the motor vehicle dealer's primary business and that are returned to the dealer's active sales inventory within one year after the date of the initial removal from inventory shall be levied and imposed on a monthly basis and shall be applied to 1/39 of the value of each new motor vehicle as determined by the manufacturer's suggested retail price and to 1/39 of the value of each used motor vehicle as determined by any industry-wide publication in common use and devoted to listing used car values.

B. A service vehicle is not considered to be removed from inventory if the service vehicle is continuously available for sale. The department shall consider any service vehicle that remains a new motor vehicle as defined in section 28-4301 or that is treated as a new motor vehicle under title 28, chapter 10 to be continuously available for sale.
A.R.S. § 42-5030 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5030
42-5030 Transfers to the Arizona convention center development fund; distributions
Status: in_force

42-5030. Transfers to the Arizona convention center development fund; distributions

A. At the same time as the first distributions each fiscal year pursuant to section 42-5029, the department shall credit to the Arizona convention center development fund established by title 9, chapter 6, article 1 the amounts determined pursuant to this section.

B. The department shall credit twenty million dollars in each fiscal year until a certification of completion of construction is filed with the state treasurer pursuant to section 9-622.  In each fiscal year thereafter, the department shall credit the amounts computed pursuant to subsection C of this section to the Arizona convention center development fund for each eligible project as described in section 9-605.

C. The amount distributed pursuant to subsection B of this section shall be computed by dividing the total cost of the eligible project not funded from municipal sources as identified in the certificate of completion of construction filed pursuant to section 9-622 by three hundred million and multiplying the quotient by the amount prescribed in section 9-602, subsection D.

D. If the chief financial officer of the eligible city certifies to the state treasurer pursuant to section 9-602 that no additional distributions are required from the Arizona convention center development fund for an eligible project, the department shall make no further transfers to the fund for that project.
A.R.S. § 42-16169 — Arizona Code / Title 42 / Chapter 16 / Article 4 / Section 16169
42-16169 Finality of decision
Status: in_force

42-16169. Finality of decision

Any decision of the state board of equalization pertaining to the valuation or classification of property is final when an appeal has not been taken within the time prescribed by section 42-16203. No person may plead such a decision in any proceeding as a bar to raising any valuation or classification issue relating to any other year.
A.R.S. § 42-14003 — Arizona Code / Title 42 / Chapter 14 / Article 1 / Section 14003
42-14003 Information considered in determining valuation; notice of determination
Status: in_force

42-14003. Information considered in determining valuation; notice of determination

A. In determining valuation under this chapter the department shall consider all additional information including information that is presented in an appeal and information that is otherwise available.

B. The department shall notify the property owner of the final full cash value on or before August 31.
A.R.S. § 42-5039 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5039
42-5039 Qualified destination management companies; definitions
Status: in_force

42-5039. Qualified destination management companies; definitions

A. A qualified destination management company is not subject to transaction privilege tax under this chapter on the gross proceeds of sales or gross income derived from a qualified contract for destination management services.  The gross proceeds of sales or gross income derived by a qualified destination management company from transactions that are not part of a qualified contract for destination management services are subject to tax if otherwise taxable under this chapter.

B. A qualified destination management company is a final consumer and user of any tangible personal property, activity or service subject to transaction privilege tax under article 2 of this chapter that the qualified destination management company arranges pursuant to a qualified contract for destination management services.

C. For the purposes of this section:

1. "Destination management services" means the business of coordinating, designing and implementing the delivery by a third party of four or more of the following:

(a) Transportation.

(b) Entertainment.

(c) Food or beverage.

(d) Recreational or amusement activity.

(e) Tours.

(f) Event venue.

(g) Theme decor.

2. "Qualified contract" means a contract for the provision of destination management services by a qualified destination management company where both of the following apply:

(a) The qualified destination management company receives payment from or on behalf of the qualified destination management company's client for the cost of the destination management services arranged by the qualified destination management company.

(b) The qualified destination management company pays the vendor supplying the destination management services arranged by the qualified destination management company including any applicable transaction privilege tax or collection of use tax charged by the vendor to the qualified destination management company.

3. "Qualified destination management company" means a person that receives on an annual basis at least eighty per cent of its gross proceeds of sales or gross income derived from destination management services.
A.R.S. § 42-13302 — Arizona Code / Title 42 / Chapter 13 / Article 7 / Section 13302
42-13302 Determining limited value in cases of modifications, omissions and changes
Status: in_force

42-13302. Determining limited value in cases of modifications, omissions and changes

A. In the following circumstances the limited property value shall be established at a level or percentage of full cash value that is comparable to that of other properties of the same or a similar use or classification:

1. Property that was erroneously totally or partially omitted from the property tax rolls in the preceding tax year, except as a result of this section.

2. Property for which a change in physical, objectively verifiable use has occurred on the property since the preceding tax year.  For the purposes of this paragraph and section 42-16002:

(a) A change in the occupant or classification of a single-family residence is not a change in use, in and of itself.

(b) A change in the classification of a guest ranch as defined in section 42-13551 is not a change in use, in and of itself.

3. Property that has been modified by construction, destruction or demolition since the preceding valuation year such that the total value of the modification is equal to or greater than fifteen percent of the full cash value.

4. Property that has been split, subdivided or consolidated from January 1 through September 30 of the valuation year, except for cases that result from an action initiated by a governmental entity.

5. Property that previously qualified for property valuation protection under article IX, section 18, subsection (7), Constitution of Arizona, if title to the property is conveyed to a person that does not qualify for property valuation protection or the current owner of the property no longer qualifies or did not reapply for property valuation protection.

6. Property that previously qualified for a statutory valuation and no longer qualifies, unless otherwise provided in law.  For the purposes of this paragraph, "statutory valuation" means a specific formula for the calculation of full cash value prescribed in chapter 12, 13, 15 or 19 of this title.

B. In the case of property that is split, subdivided or consolidated after September 30 through December 31 of the valuation year, except for cases that result from an action initiated by a governmental entity, the total limited property value of the new parcel or parcels is the same as the total limited property value of the original parcel or parcels.  For the following valuation year, the limited property value shall be established at a level or percentage of full cash value that is comparable to that of other properties of the same or a similar use or classification. The new parcel or parcels shall retain the same value-adding characteristics that applied to the original parcel before being split or consolidated, except as provided in subsection A, paragraph 3 of this section.

C. In the case of property that was split, subdivided or consolidated from January 1 through September 30 of the valuation year as a result of an action initiated by a governmental entity, the limited value is the lower of either:

1. The level or percentage of full cash value that is comparable to that of other properties of the same or similar use or classification.

2. The total limited value for the original parcel or parcels as determined under section 42-13301, and in the following valuation year, the limited property value shall be established pursuant to section 42-13301.

D. In the case of property that was split, subdivided or consolidated after September 30 through December 31 of the valuation year as a result of an action initiated by a governmental entity, the total limited value for the resulting parcel or parcels is the same as the total limited value for the original parcel or parcels as determined under section 42-13301, and in the following valuation year, the limited property value shall be established as the lower of either:

1. The level or percentage of full cash value that is comparable to that of other properties of the same or similar use or classification.

2. The limited property value established pursuant to section 42-13301.
A.R.S. § 42-6056 — Arizona Code / Title 42 / Chapter 6 / Article 2 / Section 6056
42-6056 Municipal tax hearing office
Status: in_force

42-6056. Municipal tax hearing office

(Conditionally Rpld.)

A. A municipal tax hearing office is established.  The hearing office shall hear all reviews of petitions for hearing or redetermination under the model city tax code for cities and towns not in the state collection system as of January 1, 2013 and for appeals from supplementary audits performed by cities and towns under the state collection system for all audits and assessments initiated by a city or town prior to January 1, 2015. All matters initiated by a city or town from and after January 1, 2015 shall be subject to review pursuant to section 42-6002.

B. The municipal tax code commission shall confirm within sixty days all hearing officers appointed to the municipal tax hearing office.

C. The municipal tax hearing office shall submit at least quarterly a report of the office’s activities to the municipal tax code commission.

D. The cost of the municipal tax hearing office shall be funded by the cities and towns in a manner determined pursuant to an intergovernmental agreement or contract as provided in section 11-952.
A.R.S. § 42-18058 — Arizona Code / Title 42 / Chapter 18 / Article 2 / Section 18058
42-18058 Collection and payment of tax on livestock in feedlot or stockyard; exceptions
Status: in_force

42-18058. Collection and payment of tax on livestock in feedlot or stockyard; exceptions

A. The operator of a feedlot or stockyard shall collect and remit the tax on feeder livestock that are confined at the feedlot or stockyard for fattening before sale for slaughter. The operator shall remit the tax quarterly to the county treasurer based on the aggregate of the applicable tax rates that were in effect for the preceding tax year.

B. Tax shall not be collected or remitted on the following livestock:

1. Livestock that die before leaving the feedlot or stockyard.

2. Livestock that have previously been taxed in this state during the current tax year before arriving at the feedlot or stockyard.

3. Livestock that are held in the feedlot or stockyard for less than forty-five days.

C. The department shall prescribe procedures and provide forms that are necessary to implement this section.
A.R.S. § 42-11155 — Arizona Code / Title 42 / Chapter 11 / Article 4 / Section 11155
42-11155 Property owned by charitable institutions but used for other purposes
Status: in_force

42-11155. Property owned by charitable institutions but used for other purposes

The exemptions provided by article 3 of this chapter relating to charitable institutions do not apply to property owned by charitable institutions but primarily held or used by others whose use is not exempt from taxation by article 3 of this chapter or by the Constitution of Arizona.
A.R.S. § 42-13204 — Arizona Code / Title 42 / Chapter 13 / Article 5 / Section 13204
42-13204 Election to use income method of valuation initially
Status: in_force

42-13204. Election to use income method of valuation initially

In lieu of valuation under section 42-13203, the owner of a shopping center may elect to have the valuation of the shopping center determined by the income method commonly known as the straight line building residual method if the owner submits all reasonably necessary income and expense information for the owner's three most recent fiscal years to the county assessor before September 1 of the year immediately preceding the year for which the property will be valued.
A.R.S. § 42-2051 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2051
42-2051 Arizona taxpayer assistance office; taxpayer problem resolution officer; duties
Status: in_force

42-2051. Arizona taxpayer assistance office; taxpayer problem resolution officer; duties

A. The Arizona taxpayer assistance office is established as an office in the department. The employees of the office shall be selected by the director. The manager of the taxpayer assistance office is the taxpayer problem resolution officer. The office reports directly to the director's office. The employees of the office may include employees of the department and may also include residents of this state with knowledge of taxation.

B. The office shall assist taxpayers in:

1. Obtaining easily understandable tax information and information on audits, corrections and appeals procedures of the department.

2. Answering questions regarding preparing and filing returns with the department.

3. Locating documents or payments filed with or submitted to the department by taxpayers.

C. The office shall also:

1. Receive and evaluate complaints of improper, abusive or inefficient service by employees of the department and recommend to the director appropriate action to correct such service.

2. Identify policies and practices of the department that might be barriers to the equitable treatment of taxpayers and recommend alternatives to the director.

3. Provide expeditious service to taxpayers whose problems are not resolved through normal channels.

4. Negotiate with department personnel to resolve the most complex and sensitive taxpayer problems.

5. Take action to stop or prohibit the department from taking an action against a taxpayer.

6. Participate and represent taxpayers' interests and concerns in planning meetings, reviewing instructions and formulating department policies and procedures.

7. Compile data each year on the number and type of taxpayer complaints and evaluate the actions taken to resolve complaints.

8. Survey taxpayers each year to obtain their evaluation of the quality of service provided by the department.

9. Monitor the number and type of seizures of property under chapter 1, article 5 of this title.

10. Notify and recommend appropriate action to the director if the office determines that a seizure has occurred or will occur which has subjected or will subject the taxpayer to a seizure of property without affording a reasonable opportunity for discussion of alternative methods of payment of the obligation.

11. Perform other functions which relate to taxpayer assistance as prescribed by the director.

D. Actions taken by the office may be reviewed only by the director upon request of the department or a taxpayer. The director may modify action taken by the office.
A.R.S. § 42-18107 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18107
42-18107 Additional penalty on listed property
Status: in_force

42-18107. Additional penalty on listed property

A. A penalty of five dollars or five per cent of the delinquent taxes for which the tax lien is being sold, whichever is more, shall be added to the amount of taxes that are delinquent on each parcel of real property that is separately assessed and described in the list and notice.

B. This penalty:

1. Is imposed and is due on January 1 after the list is prepared pursuant to section 42-18106.

2. Shall be collected by the county treasurer.
A.R.S. § 42-12057 — Arizona Code / Title 42 / Chapter 12 / Article 2 / Section 12057
42-12057 Criteria for renewable energy property
Status: in_force

42-12057. Criteria for renewable energy property

A. To qualify for the classification as class six pursuant to section 42-12006, paragraph 8, the owner of a manufacturing facility or headquarters facility must provide documentation to the county assessor each year that the facility is primarily dedicated to renewable energy manufacturing or regional, national or global renewable energy business headquarters operations.

B. For the purposes of this section, renewable energy operations are limited to manufacturers of, and headquarters for, systems and components that are used or useful in manufacturing renewable energy equipment for generating, storing, testing and research and development, transmitting or distributing electricity from renewable resources, including specialized crates necessary to package the renewable energy equipment manufactured at the facility.
A.R.S. § 42-12007 — Arizona Code / Title 42 / Chapter 12 / Article 1 / Section 12007
42-12007 Class seven property
Status: in_force

42-12007. Class seven property

For purposes of taxation, class seven is established consisting of real and personal property and improvements that meet the criteria for property included in class one, paragraphs 12 and 13 and also the criteria for commercial historic property as defined in section 42-12101.
A.R.S. § 42-18061 — Arizona Code / Title 42 / Chapter 18 / Article 2 / Section 18061
42-18061 Refund of overpayment due to change in tax roll; reversion of unclaimed refund
Status: in_force

42-18061. Refund of overpayment due to change in tax roll; reversion of unclaimed refund

A. If a change is made in the tax roll pursuant to law, the county treasurer shall refund any taxes that have been overpaid as a result of the change as follows:

1. If monies are available, the county treasurer shall pay the refunds out of those monies in the current year.

2. If monies are not available, the board of supervisors shall budget for the refund in the next fiscal year.

3. The county treasurer is entitled to credit for the refunds in the next accounting after the repayment with each of the political subdivisions and this state to which the overpayment of tax was distributed.

4. The state and any affected political subdivision shall include in their budgets for the fiscal year the proportional amount of the refund for which each is liable.

B. If a refund that is authorized by this section is unpaid and unclaimed two years after the fiscal year in which it was budgeted, the monies that were budgeted for the refund revert to the appropriate fund of the political subdivision that levied the tax.
A.R.S. § 42-2052 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2052
42-2052 Erroneous advice or misleading statements by the department; abatement of penalties and interest; definitions
Status: in_force

42-2052. Erroneous advice or misleading statements by the department; abatement of penalties and interest; definitions

A. Notwithstanding sections 42-1123 and 42-1125, no interest or penalty may be assessed on an amount assessed as a deficiency if either:

1. The deficiency assessed is directly attributable to erroneous written advice furnished to the taxpayer by an employee of the department acting in an official capacity in response to a specific request from the taxpayer and not from the taxpayer's failure to provide adequate or accurate information.

2. All of the following are true:

(a) A tax return form or tax ruling prepared by the department contains a statement that, if followed by a taxpayer, would cause the taxpayer to misapply this title or title 43.

(b) The taxpayer reasonably relies on the statement.

(c) The taxpayer's underpayment directly results from this reliance.

B. Each employee of the department, at the time any oral advice is given to any person, shall inform the person that the department is not bound by such oral advice.

C. For purposes of this section:

1. "Tax return form" includes the instructions that the department prepares for use with the tax return form whether the form or instructions are provided on paper or by electronic means.

2. "Tax ruling" means a statement issued by the director and denominated as a tax ruling or a tax procedure.
A.R.S. § 42-5035 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5035
42-5035 Use of share of tax monies by counties; inclusion of estimate of anticipated tax collections in county budget
Status: in_force

42-5035. Use of share of tax monies by counties; inclusion of estimate of anticipated tax collections in county budget

A. The tax monies accruing to the counties under this article shall be credited to the general fund of each respective county.

B. The department, on or before the first Monday of July each year, shall estimate the anticipated tax monies to be collected under this article payable to each county of the state under this article during the ensuing fiscal year, and shall forthwith transmit the estimate to each county treasurer. The board of supervisors may include the estimate in the county's budget in its estimate of receipts from sources other than property taxes.

C. No debt, obligation or liability shall be paid or liquidated from any portion of the tax collected under this article which is credited to the county general fund unless it is for an item or purpose specific in amount included in the budget.
A.R.S. § 42-1202 — Arizona Code / Title 42 / Chapter 1 / Article 5 / Section 1202
42-1202 Surrender of property subject to levy; definition
Status: in_force

42-1202. Surrender of property subject to levy; definition

A. Except as otherwise provided in subsection B of this section, any person in possession of, or obligated with respect to, property or rights to property subject to levy upon which a levy has been made shall, upon demand of the department, surrender such property or rights to property or discharge such obligation to the department, except such part of the property or rights to property as is, at the time of such demand, subject to an attachment or execution under any judicial process.

B. A levy on an organization with respect to a life insurance or endowment contract issued by such organization, without necessity for the surrender of the contract document, constitutes a demand by the department for payment of the amount described in this subsection and the exercise of the right of the person against whom the tax is assessed to the advance of such amount. Such organization shall pay over the amount within ninety days after service of notice of levy. The notice shall include a certification by the department that a copy of the notice has been mailed to the person against whom the tax is assessed at the person's last known address. The levy is deemed to be satisfied if such organization pays over to the department the amount which the person against whom the tax is assessed could have received from the organization on the date prescribed in this subsection for the satisfaction of the levy, increased by the amount of any advance, including contractual interest, made to such person on or after the date the organization had actual notice or knowledge of the existence of the lien with respect to which the levy is made, other than an advance, including contractual interest, made automatically to maintain the contract in force under an agreement entered into before the organization has such notice or knowledge. The satisfaction of a levy under this subsection is without prejudice to any civil action for the enforcement of any lien imposed by this chapter with respect to the contract.

C. A person who fails or refuses to surrender any property or rights to property, subject to levy, upon demand by the department, is liable in person and estate to this state in a sum equal to the value of the property or rights to property not so surrendered, but not exceeding the amount of taxes for the collection of which such levy has been made, with costs and interest on such sum at the rate determined pursuant to section 42-1123 from the date of such levy, or, in the case of a levy described in section 42-1201, subsection E or F, from the date such person would otherwise have been obligated to pay such amounts to the taxpayer. Any amount, other than costs, recovered under this subsection shall be credited against the tax liability for the collection of which the levy was made.

D. A person in possession of or obligated with respect to property or rights to property subject to levy upon which a levy has been made who, upon demand by the department, surrenders the property or rights to property, or discharges the obligation, to the department or who pays a liability under subsection C of this section is discharged from any obligation or liability to the delinquent taxpayer with respect to such property or rights to property arising from the surrender or payment. In the case of a levy which is satisfied pursuant to subsection B of this section, the organization is also discharged from any obligation or liability to any beneficiary arising from such surrender or payment.

E. As used in this section, "person" includes an officer or employee of a corporation, an officer, employee or elected official of this state or its political subdivisions, or any agency or instrumentality of this state or its political subdivisions, or a member or employee of a partnership, who as such officer, employee, elected official or member is under a duty to surrender the property or rights to property, or to discharge the obligation.
A.R.S. § 42-18121.01 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18121.01
42-18121.01 Subsequent purchaser; assignment
Status: in_force

42-18121.01. Subsequent purchaser; assignment

A. If a person who holds a certificate of purchase does not exercise the option to pay subsequent taxes, accrued interest and related fees due on the property pursuant to section 42-18121, the county treasurer may require a person who desires to purchase a subsequent certificate of purchase on the property to acquire by assignment all currently outstanding certificates of purchase previously issued on the property.  The county treasurer shall process the sale as an assignment on behalf of the previous holder of the certificate of purchase.

B. An assignment made pursuant to this section vests in the person all the right and title of the original purchaser with the lien date effective from the original lien sale date.
A.R.S. § 42-16164 — Arizona Code / Title 42 / Chapter 16 / Article 4 / Section 16164
42-16164 Decisions
Status: in_force

42-16164. Decisions

A. The hearing officer, board member or panel shall issue its decision at the conclusion of the hearing, except that in appropriate cases, the chairman of the state board may authorize the hearing to be continued for additional deliberation. The chairman of the state board may review any decision to ensure due process to all parties.

B. The board shall issue the decision in writing to each party and, in all cases, to the department by mail.
A.R.S. § 42-3305 — Arizona Code / Title 42 / Chapter 3 / Article 7 / Section 3305
42-3305 Enforcement; penalty for failure to precollect and remit tax; violation; classification
Status: in_force

42-3305. Enforcement; penalty for failure to precollect and remit tax; violation; classification

A. If the distributor fails to precollect or remit the tax imposed by this article when due, the distributor is subject to a civil penalty equal to the amount of taxes that should have been precollected or remitted but was not.

B. A distributor or any person who ships, transports, sells or distributes cigarettes, cigars, smoking tobacco, plug tobacco, snuff and other forms of tobacco on which the tax required by this article has not been paid when due is guilty of a class 3 misdemeanor.
A.R.S. § 42-5152 — Arizona Code / Title 42 / Chapter 5 / Article 4 / Section 5152
42-5152 Presumption
Status: in_force

42-5152. Presumption

It shall be presumed that tangible personal property purchased by any person and brought into this state is purchased for storage, use or consumption in this state.