A.R.S. § 42-14158 — Arizona Code / Title 42 / Chapter 14 / Article 4 / Section 14158
42-14158 Existing generation facilities; computing adjusted original cost; computing full cash value; definitions
Status: in_force

42-14158. Existing generation facilities; computing adjusted original cost; computing full cash value; definitions

A. To achieve equity in the full cash values of existing and new electric generation facilities, the department shall compute adjusted original costs for existing generation facilities in lieu of actual cost for use in determining the full cash values in accordance with section 42-14156. Adjusted original costs shall be used to determine full cash values for existing generation facilities for tax year 2004 and subsequent years.  Retirements of property in service before January 1, 2002 shall be deducted based on the percentage of adjusted original cost to actual original cost for each vintage year.  For any property added to an existing generation facility on or after January 1, 2002, or for an electric generation facility placed in service on or after January 1, 2001, cost shall be determined in accordance with the provisions of section 42-14156.

B. To compute the adjusted original cost of property placed in service before January 1, 2002 for existing generation facilities, the department shall:

1. Determine the full cash value ratio.

2. Determine the original cost by vintage year for 2001 and all prior years.

3. Multiply the original costs for real property improvements and personal property by vintage year by the full cash value ratio to reflect the tax year 2003 full cash value by vintage year.

4. Divide the full cash value by vintage year as calculated in paragraph 3 of this subsection of real property improvements and personal property by the valuation factors reflected in the department’s valuation tables as prescribed in section 42-14156, without phase-in adjustments prescribed in section 42-14156, subsection A, paragraph 3.

C. For the purposes of this section:

1. "Existing generation facility" means the property of an electric generation facility that was valued by the department as of January 1, 2001. It does not include any property added to the facility after January 1, 2002.

2. "Full cash value ratio" means the full cash value of the existing generation facility for tax year 2003, excluding the value of land associated with the facility, renewable energy equipment and materials and supplies as of December 31, 2001, divided by the total original cost, excluding the cost of land associated with the facility, renewable energy equipment and materials and supplies for the facility as of December 31, 2001.

3. "Original cost" means the actual cost of acquiring or constructing property, including additions, retirements, adjustments and transfers.

4. "Vintage year" means the first year of depreciation of the asset reflected on the owner’s balance sheet.
A.R.S. § 42-11054 — Arizona Code / Title 42 / Chapter 11 / Article 2 / Section 11054
42-11054 Standard appraisal methods and techniques
Status: in_force

42-11054. Standard appraisal methods and techniques

A. Subject to subsection B of this section, the department shall:

1. Prescribe guidelines for applying standard appraisal methods and techniques that shall be used by the department and county assessors in determining the valuation of property.

2. Prepare and maintain manuals and other necessary guidelines, consistent with this section, reflecting the standard methods and techniques to perpetuate a current inventory of taxable property and the valuation of that property.

B. Before they are adopted, the department shall submit each substantive proposed guideline, table and manual that is developed, amended or otherwise modified from and after December 31, 2006 to the joint legislative oversight committee on property tax assessment and appeals.  The department shall not finally adopt, amend or otherwise modify a substantive guideline, table or manual for at least thirty days after submitting the measure to the committee.  The committee may hold one or more informational hearings on the proposed measure within thirty days after submission. In adopting, amending or modifying the measure the department shall consider the committee's comments. If the committee fails to hold a hearing within thirty days after submission, the department may adopt, amend or modify the measure without further consideration.

C. In applying prescribed standard appraisal methods and techniques:

1. Current usage shall be included in the formula for reaching a determination of full cash value.

2. Solar energy devices, as defined in section 44-1761, grid-tied photovoltaic systems and any other device or system designed to produce solar energy primarily for on-site consumption are considered to add no value to the property on which such a device or system is installed.

3. If characterized as personal property, subject to any applicable constitutional exemption from taxation, solar energy devices, as defined in section 44-1761, grid-tied photovoltaic systems and any other device or system designed to produce solar energy primarily for on-site consumption shall be valued as provided in section 42-13056.

4. Energy efficient building components, renewable energy equipment and combined heat and power systems are considered to add no value to the property, if the property owner provides the county assessor with documentation of all elements that qualify pursuant to this paragraph, including documents showing actual acquisition and installation costs.  The documentation must be submitted to the county assessor not later than six months before the notice of full cash value is issued for the initial evaluation year pursuant to section 42-15101 or, if the component is added after September 30 of the preceding year, not later than March 31 of the initial valuation year.  For the purposes of this paragraph:

(a) "Combined heat and power system" means a system that generates electricity or mechanical power and useful thermal energy in a single, integrated system such that the useful power output of the facility plus one-half the useful thermal output during any twelve-month period is not less than 42.5 percent of the total energy input of fuel to the facility.

(b) "Energy efficient building components" means high performance sustainable building components installed so that the buildings or building components meet or exceed the energy efficiencies prescribed by the United States environmental protection agency energy star program or by a leadership in energy and environmental design green building rating standard developed by the United States green building council, or an equivalent green building standard, or that are at least fifteen percent more energy efficient than the international energy conservation code in effect at the time of building permit issuance.

(c) "Renewable energy equipment" means equipment that is used to produce energy primarily for on-site consumption from renewable resources, including wind, forest thinnings, agricultural waste, biogas, biomass, geothermal, low-impact hydropower and solar energy not included under paragraph 2 of this subsection.

D. If the methods and techniques prescribe using market data as an indication of market value, the price paid for future anticipated property value increments shall be excluded.

E. For the purposes of determining full cash value the department and county assessors shall use and apply the ratio standard guidelines issued by the department for tax year 1993 in the same manner as they were applied in tax year 1993. This subsection does not apply to property that is valued according to prescribed statutory methods or to property for which values are determined in the year after an appeal pursuant to section 42-16002.
A.R.S. § 42-5062 — Arizona Code / Title 42 / Chapter 5 / Article 2 / Section 5062
42-5062 Transporting classification
Status: in_force

42-5062. Transporting classification

A. The transporting classification is comprised of the business of transporting for hire persons, freight or property by motor vehicle, railroads or aircraft from one point to another point in this state. The transporting classification does not include:

1. Transporting for hire persons, freight or property by:

(a) Motor carriers subject to a fee prescribed in title 28, chapter 16, article 4.

(b) Light motor vehicles subject to a fee under title 28, chapter 15, article 4.

(c) Transportation network companies subject to a fee prescribed pursuant to section 28-9552.

(d) Transportation network company drivers on transactions involving transportation network services as defined in section 28-9551.

(e) Vehicle for hire companies that are issued permits pursuant to section 28-9503.

(f) Vehicle for hire drivers operating under a company permit issued pursuant to section 28-9503 on transactions involving vehicle for hire services.

2. The business of transporting for hire persons traveling in air commerce by aircraft if taxation of the business is preempted by federal law.

3. Ambulances or ambulance services provided under title 48 or certified pursuant to title 36, chapter 21.1 or provided by a city or town in a county with a population of less than one hundred fifty thousand persons as determined in the most recent United States decennial census.

4. Public transportation program services for the dial-a-ride programs and special needs transportation services.

5. Transporting freight or property for hire by a railroad operating exclusively in this state if the transportation comprises a portion of a single shipment of freight or property, involving more than one railroad, either from a point in this state to a point outside this state or from a point outside this state to a point in this state. For the purposes of this paragraph, "a single shipment" means the transportation that begins at the point at which one of the railroads first takes possession of the freight or property and continues until the point at which one of the railroads relinquishes possession of the freight or property to a party other than one of the railroads.

6. Arranging transportation as a convenience or service to a person's customers if that person is not otherwise engaged in the business of transporting persons, freight or property for hire.  This exception does not apply to businesses that dispatch vehicles pursuant to customer orders and send the billings and receive the payments associated with that activity, including when the transportation is performed by third-party independent contractors. For the purposes of this paragraph, "arranging" includes billing for or collecting transportation charges from a person's customers on behalf of the persons providing the transportation.

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

1. The gross proceeds of sales or gross income derived from transporting for hire persons, freight or property by a railroad pursuant to a contract with another railroad that is also considered to be engaged in the businesses of transporting persons, freight or property for hire if the other railroad is liable for the tax on gross proceeds of sales or gross income attributable to the transportation.

2. The gross proceeds of sales or gross income derived from business activity that is properly included in any other business classification under this article and that is taxable to the person engaged in that classification, but the gross proceeds of sales or gross income to be deducted shall not exceed the consideration paid to the person conducting the activity.

3. The gross proceeds of sales or gross income derived from a business activity that is arranged by the person who is subject to tax under this section and that is not taxable to the person conducting the activity due to an exclusion, exemption or deduction under this section or section 42-5073, but the gross proceeds of sales or gross income to be deducted shall not exceed the consideration paid to the person conducting the activity.

4. The gross proceeds of sales or gross income derived from business activity that is arranged by a person who is subject to tax under this section and that is taxable to another person under this section who conducts the activity, but the gross proceeds of sales or gross income to be deducted shall not exceed the consideration paid to the person conducting the activity.

5. The gross proceeds of sales or gross income derived from transporting fertilizer by a railroad from a point in this state to another point in this state.
A.R.S. § 42-3151 — Arizona Code / Title 42 / Chapter 3 / Article 4 / Section 3151
42-3151 Inspection of records and stocks of luxuries
Status: in_force

42-3151. Inspection of records and stocks of luxuries

A. All books, papers, invoices and records of any wholesaler, distributor or retailer whether or not required under this chapter to be kept, showing sales, receipts and purchases of luxuries, shall be open for inspection by the department as follows:

1. Except as provided in paragraph 2 of this subsection, any inspection must begin during the normal business hours of the building, facility, site or place being inspected.

2. Any inspection that does not begin during normal business hours requires a judicial warrant or the prior written consent of the wholesaler, distributor or retailer.

B. Any stock of luxuries in and upon any building, facility, site or place where placed, produced, stored or sold may be inspected by the department to determine compliance with this chapter.  Except as provided in subsections A and C of this section, a business may not maintain any books, papers, invoices, records and luxuries subject to the department's inspection in a place and manner that requires a judicial warrant or prior written consent of the wholesaler, distributor or retailer.

C. A business that maintains any books, papers, invoices or records electronically shall provide access to the data for the department's inspection at its business location, regardless of the storage location of the data.  The business shall provide the access at the business location in a place and manner that is accessible to the department during normal business hours without a judicial warrant or prior written consent of the wholesaler, distributor or retailer.
A.R.S. § 42-3009 — Arizona Code / Title 42 / Chapter 3 / Article 1 / Section 3009
42-3009 Exemption for articles and substances sold in interstate commerce
Status: in_force

42-3009. Exemption for articles and substances sold in interstate commerce

The tax imposed by this chapter shall not be imposed upon any article or substance sold in interstate commerce and that this state is prohibited from taxing under the Constitution of the United States.
A.R.S. § 42-5074 — Arizona Code / Title 42 / Chapter 5 / Article 2 / Section 5074
42-5074 Restaurant classification
Status: in_force

42-5074. Restaurant classification

A. The restaurant classification is comprised of the business of operating restaurants, dining cars, dining rooms, lunchrooms, mobile food units, lunch stands, soda fountains, catering services or similar establishments where articles of food or drink are sold for consumption on or off the premises.

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

1. Sales to a person engaged in business classified under the restaurant classification if the items sold are to be resold in the regular course of the business.

2. Sales by a congressionally chartered veterans organization of food or drink prepared for consumption on the premises leased, owned or maintained by the organization.

3. Sales by churches, fraternal benefit societies and other nonprofit organizations, as these organizations are defined in the federal internal revenue code (26 United States Code section 501), that do not regularly engage or continue in the restaurant business for the purpose of fund-raising.

4. Sales 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 a major league baseball team 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.

5. Sales at a rodeo featuring primarily farm and ranch animals in this state 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 if no part of the organization's net earnings inures to the benefit of any private shareholder or individual.

6. Sales by any nonprofit organization organized and operated exclusively for charitable purposes and recognized by the United States internal revenue service under section 501(c)(3) of the internal revenue code.

7. Sales to qualifying hospitals as defined in section 42-5001.

8. Sales to 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.

9. Sales of food, drink and condiment for consumption within the premises of any 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.

10. Sales of articles of prepared or unprepared food, drink or condiment and accessory tangible personal property to a school district or charter school if the articles and accessory tangible personal property are served to persons for consumption on the premises of a public school in the school district or charter school during school hours.

11. Prepared food, drink or condiment donated by a restaurant to a nonprofit charitable organization that has qualified under section 501(c)(3) of the internal revenue code and that regularly serves meals to the needy and indigent on a continuing basis at no cost.

12. Sales of articles of food and drink at low or reduced prices to eligible elderly or homeless persons or persons with a disability by a restaurant that contracts with the department of economic security and that is approved by the food and nutrition services 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 of the articles of food and drink are made with the benefits issued pursuant to the supplemental nutrition assistance program.

C. The tax imposed on the restaurant classification pursuant to this section does not apply to the gross proceeds of sales or gross income from tangible personal property sold to a commercial airline consisting of food, beverages and condiments and accessories used for serving the food and beverages, if those items are to be provided without additional charge to passengers for consumption in flight.  For the purposes of this subsection, "commercial airline" means a person holding a federal certificate of public convenience and necessity or foreign air carrier permit for air transportation to transport persons, property or United States mail in intrastate, interstate or foreign commerce.

D. The department shall separately account for revenues collected under the restaurant classification for the purposes of section 42-5029, subsection D, paragraph 4, subdivision (b).

E. For the purposes of section 42-5032.01, the department shall separately account for revenues collected under the restaurant classification from businesses operating restaurants, dining rooms, lunchrooms, lunch stands, soda fountains, catering services or similar establishments:

1. On the premises of a multipurpose facility that is owned or operated by the tourism and sports authority pursuant to title 5, chapter 8 for consumption on or off the premises.

2. At professional football contests that are held in a stadium located on the campus of an institution under the jurisdiction of the Arizona board of regents.

F. For the purposes of section 42-5032.03 and subject to section 48-4238, beginning October 1, 2025 and each month thereafter through  December 31, 2055, the department shall separately account for revenues collected under the restaurant classification from businesses operating restaurants, dining rooms, lunchrooms, lunch stands, soda fountains, catering services or similar establishments on the premises of a major league baseball facility or an adjacent building that is owned by a county stadium district pursuant to title 48, chapter 26 and operated by the county stadium district or the professional baseball franchise organization that occupies the major league baseball facility or adjacent building.  For the purposes of this subsection, "adjacent building" and "major league baseball facility" have the same meanings prescribed in section 48-4201.
A.R.S. § 42-17108 — Arizona Code / Title 42 / Chapter 17 / Article 3 / Section 17108
42-17108 Encumbering municipal monies to pay obligations after close of fiscal year
Status: in_force

42-17108. Encumbering municipal monies to pay obligations after close of fiscal year

A. A city or town may encumber monies at the end of a fiscal year for any liabilities incurred during that fiscal year and still outstanding at the end of the fiscal year.

B. Payments may be made from encumbered monies for a period of sixty days immediately after the end of the fiscal year. After the expiration of the sixty day period:

1. Any remaining encumbered balance lapses.

2. No further payments may be made from the budget of the preceding fiscal year.
A.R.S. § 42-5075 — Arizona Code / Title 42 / Chapter 5 / Article 2 / Section 5075
42-5075 Prime contracting classification; exemptions; definitions
Status: in_force

42-5075. Prime contracting classification; exemptions; definitions

A. The prime contracting classification is comprised of the business of prime contracting and the business of manufactured building dealer.  Sales for resale to another manufactured building dealer are not subject to tax.  Sales for resale do not include sales to a lessor of manufactured buildings. The sale of a used manufactured building is not taxable under this chapter. The prime contracting classification does not include any work or operation performed by a person that is not required to be licensed by the registrar of contractors pursuant to section 32-1121.

B. The tax base for the prime contracting classification is sixty-five percent of the gross proceeds of sales or gross income derived from the business. The following amounts shall be deducted from the gross proceeds of sales or gross income before computing the tax base:

1. The sales price of land, which shall not exceed the fair market value.

2. Sales and installation of groundwater measuring devices required under section 45-604 and groundwater monitoring wells required by law, including monitoring wells installed for acquiring information for a permit required by law.

3. The sales price of furniture, furnishings, fixtures, appliances and attachments that are not incorporated as component parts of or attached to a manufactured building or the setup site. The sale of such items may be subject to the taxes imposed by article 1 of this chapter separately and distinctly from the sale of the manufactured building.

4. The gross proceeds of sales or gross income received from a contract entered into for the modification of any building, highway, road, railroad, excavation, manufactured building or other structure, project, development or improvement located in a military reuse zone for providing aviation or aerospace services or for a manufacturer, assembler or fabricator of aviation or aerospace products within an active military reuse zone after the zone is initially established or renewed under section 42-1301. To be eligible to qualify for this deduction, before beginning work under the contract, the prime contractor must have applied for a letter of qualification from the department of revenue.

5. The gross proceeds of sales or gross income derived from a contract to construct a qualified environmental technology manufacturing, producing or processing facility, as described in section 41-1514.02, and from subsequent construction and installation contracts that begin within ten years after the start of initial construction. To qualify for this deduction, before beginning work under the contract, the prime contractor must obtain a letter of qualification from the department of revenue. This paragraph shall apply for ten full consecutive calendar or fiscal years after the start of initial construction.

6. The gross proceeds of sales or gross income from a contract to provide for one or more of the following actions, or a contract for site preparation, constructing, furnishing or installing machinery, equipment or other tangible personal property, including structures necessary to protect exempt incorporated materials or installed machinery or equipment, and tangible personal property incorporated into the project, to perform one or more of the following actions in response to a release or suspected release of a hazardous substance, pollutant or contaminant from a facility to the environment, unless the release was authorized by a permit issued by a governmental authority:

(a) Actions to monitor, assess and evaluate such a release or a suspected release.

(b) Excavation, removal and transportation of contaminated soil and its treatment or disposal.

(c) Treatment of contaminated soil by vapor extraction, chemical or physical stabilization, soil washing or biological treatment to reduce the concentration, toxicity or mobility of a contaminant.

(d) Pumping and treatment or in situ treatment of contaminated groundwater or surface water to reduce the concentration or toxicity of a contaminant.

(e) The installation of structures, such as cutoff walls or caps, to contain contaminants present in groundwater or soil and prevent them from reaching a location where they could threaten human health or welfare or the environment.

This paragraph does not include asbestos removal or the construction or use of ancillary structures such as maintenance sheds, offices or storage facilities for unattached equipment, pollution control equipment, facilities or other control items required or to be used by a person to prevent or control contamination before it reaches the environment.

7. The gross proceeds of sales or gross income that is derived from a contract for the installation, assembly, repair or maintenance of machinery, equipment or other tangible personal property that is either deducted from the tax base of the retail classification under section 42-5061, subsection B or that is exempt from use tax under section 42-5159, subsection B and that has independent functional utility, pursuant to the following provisions:

(a) The deduction provided in this paragraph includes the gross proceeds of sales or gross income derived from all of the following:

(i) Any activity performed on machinery, equipment or other tangible personal property with independent functional utility.

(ii) Any activity performed on any tangible personal property relating to machinery, equipment or other tangible personal property with independent functional utility in furtherance of any of the purposes provided for under subdivision (d) of this paragraph.

(iii) Any activity that is related to the activities described in items (i) and (ii) of this subdivision, including inspecting the installation of or testing the machinery, equipment or other tangible personal property.

(b) The deduction provided in this paragraph does not include gross proceeds of sales or gross income from the portion of any contracting activity that consists of the development of, or modification to, real property in order to facilitate the installation, assembly, repair, maintenance or removal of machinery, equipment or other tangible personal property that is either deducted from the tax base of the retail classification under section 42-5061, subsection B or exempt from use tax under section 42-5159, subsection B.

(c) The deduction provided in this paragraph shall be determined without regard to the size or useful life of the machinery, equipment or other tangible personal property.

(d) For the purposes of this paragraph, "independent functional utility" means that the machinery, equipment or other tangible personal property can independently perform its function without attachment to real property, other than attachment for any of the following purposes:

(i) Assembling the machinery, equipment or other tangible personal property.

(ii) Connecting items of machinery, equipment or other tangible personal property to each other.

(iii) Connecting the machinery, equipment or other tangible personal property, whether as an individual item or as a system of items, to water, power, gas, communication or other services.

(iv) Stabilizing or protecting the machinery, equipment or other tangible personal property during operation by bolting, burying or performing other similar nonpermanent connections to either real property or real property improvements.

8. The gross proceeds of sales or gross income attributable to the purchase of machinery, equipment or other tangible personal property that is exempt from or deductible from transaction privilege and use tax under:

(a) Section 42-5061, subsection A, paragraph 25, 29 or 58.

(b) Section 42-5061, subsection B.

(c) Section 42-5159, subsection A, paragraph 13, subdivision (a), (b), (c), (d), (e), (f), (j), (k), (m) or (n) or paragraph 55.

(d) Section 42-5159, subsection B.

9. The gross proceeds of sales or gross income received from a contract for the construction of an environmentally controlled facility for the raising of poultry for the production of eggs and the sorting, cooling and packaging of eggs.

10. The gross proceeds of sales or gross income that is derived from a contract entered into with a person who is engaged in the commercial production of livestock, livestock products or agricultural, horticultural, viticultural or floricultural crops or products in this state for the modification of any building, highway, road, excavation, manufactured building or other structure, project, development or improvement used directly and primarily to prevent, monitor, control or reduce air, water or land pollution.

11. The gross proceeds of sales or gross income that is derived from the installation, assembly, repair or maintenance of clean rooms that are deducted from the tax base of the retail classification pursuant to section 42-5061, subsection B, paragraph 17.

12. For taxable periods beginning from and after June 30, 2001, the gross proceeds of sales or gross income derived from a contract entered into for the construction of a residential apartment housing facility that qualifies for a federal housing subsidy for low-income persons over sixty-two years of age and that is owned by a nonprofit charitable organization that has qualified under section 501(c)(3) of the internal revenue code.

13. For taxable periods beginning from and after December 31, 1996 and ending before January 1, 2017, the gross proceeds of sales or gross income derived from a contract to provide and install a solar energy device. The contractor shall register with the department as a solar energy contractor. By registering, the contractor acknowledges that it will make its books and records relating to sales of solar energy devices available to the department for examination.

14. The gross proceeds of sales or gross income derived from a contract entered into for the construction of a launch site, as defined in 14 Code of Federal Regulations section 401.5.

15. The gross proceeds of sales or gross income derived from a contract entered into for the construction of a domestic violence shelter that is owned and operated by a nonprofit charitable organization that has qualified under section 501(c)(3) of the internal revenue code.

16. The gross proceeds of sales or gross income derived from contracts to perform postconstruction treatment of real property for termite and general pest control, including wood-destroying organisms.

17. The gross proceeds of sales or gross income received from contracts entered into before July 1, 2006 for constructing a state university research infrastructure project if the project has been reviewed by the joint committee on capital review before the university enters into the construction contract for the project. For the purposes of this paragraph, "research infrastructure" has the same meaning prescribed in section 15-1670.

18. The gross proceeds of sales or gross income received from a contract for the construction of any building, or other structure, project, development or improvement owned by a qualified business under section 41-1516 for harvesting or processing qualifying forest products removed from qualifying projects as defined in section 41-1516 if actual construction begins before January 1, 2024. To qualify for this deduction, the prime contractor must obtain a letter of qualification from the Arizona commerce authority before beginning work under the contract.

19. Any amount of the gross proceeds of sales or gross income attributable to development fees that are incurred in relation to a contract for construction, development or improvement of real property and that are paid by a prime contractor or subcontractor. For the purposes of this paragraph:

(a) The attributable amount shall not exceed the value of the development fees actually imposed.

(b) The attributable amount is equal to the total amount of development fees paid by the prime contractor or subcontractor, and the total development fees credited in exchange for the construction of, contribution to or dedication of real property for providing public infrastructure, public safety or other public services necessary to the development. The real property must be the subject of the development fees.

(c) "Development fees" means fees imposed to offset capital costs of providing public infrastructure, public safety or other public services to a development and authorized pursuant to section 9-463.05, section 11-1102 or title 48 regardless of the jurisdiction to which the fees are paid.

20. The gross proceeds of sales or gross income derived from a contract entered into for the construction of a mixed waste processing facility that is located on a municipal solid waste landfill and that is constructed for the purpose of recycling solid waste or producing renewable energy from landfill waste. For the purposes of this paragraph:

(a) "Mixed waste processing facility" means a solid waste facility that is owned, operated or used for the treatment, processing or disposal of solid waste, recyclable solid waste, very small quantity generator waste or household hazardous waste. For the purposes of this subdivision, "very small quantity generator waste", "household hazardous waste" and "solid waste facility" have the same meanings prescribed in section 49-701, except that solid waste facility does include a site that stores, treats or processes paper, glass, wood, cardboard, household textiles, scrap metal, plastic, vegetative waste, aluminum, steel or other recyclable material.

(b) "Municipal solid waste landfill" has the same meaning prescribed in section 49-701.

(c) "Recycling" means collecting, separating, cleansing, treating and reconstituting recyclable solid waste that would otherwise become solid waste, but does not include incineration or other similar processes.

(d) "Renewable energy" means usable energy, including electricity, fuels, gas and heat, produced through the conversion of energy provided by sunlight, water, wind, geothermal, heat, biomass, biogas, landfill gas or another nonfossil renewable resource.

21. The gross proceeds of sales or gross income derived from a contract to install containment structures. For the purposes of this paragraph, "containment structure" means a structure that prevents, monitors, controls or reduces noxious or harmful discharge into the environment.

C. Entitlement to the deduction pursuant to subsection B, paragraph 7 of this section is subject to the following provisions:

1. A prime contractor may establish entitlement to the deduction by both:

(a) Marking the invoice for the transaction to indicate that the gross proceeds of sales or gross income derived from the transaction was deducted from the base.

(b) Obtaining a certificate executed by the purchaser indicating the name and address of the purchaser, the precise nature of the business of the purchaser, the purpose for which the purchase was made, the necessary facts to establish the deductibility of the property under section 42-5061, subsection B, and a certification that the person executing the certificate is authorized to do so on behalf of the purchaser.  The certificate may be disregarded if the prime contractor has reason to believe that the information contained in the certificate is not accurate or complete.

2. A person who does not comply with paragraph 1 of this subsection may establish entitlement to the deduction by presenting facts necessary to support the entitlement, but the burden of proof is on that person.

3. The department may prescribe a form for the certificate described in paragraph 1, subdivision (b) of this subsection. The department may also adopt rules that describe the transactions with respect to which a person is not entitled to rely solely on the information contained in the certificate provided in paragraph 1, subdivision (b) of this subsection but must instead obtain such additional information as required in order to be entitled to the deduction.

4. If a prime contractor is entitled to a deduction by complying with paragraph 1 of this subsection, the department may require the purchaser who caused the execution of the certificate to establish the accuracy and completeness of the information required to be contained in the certificate that would entitle the prime contractor to the deduction.  If the purchaser cannot establish the accuracy and completeness of the information, the purchaser is liable in an amount equal to any tax, penalty and interest that the prime contractor would have been required to pay under article 1 of this chapter if the prime contractor had not complied with paragraph 1 of this subsection. Payment of the amount under this paragraph exempts the purchaser from liability for any tax imposed under article 4 of this chapter. The amount shall be treated as a transaction privilege tax to the purchaser and as tax revenues collected from the prime contractor in order to designate the distribution base for purposes of section 42-5029.

D. Subcontractors or others who perform modification activities are not subject to tax if they can demonstrate that the job was within the control of a prime contractor or contractors or a dealership of manufactured buildings and that the prime contractor or dealership is liable for the tax on the gross income, gross proceeds of sales or gross receipts attributable to the job and from which the subcontractors or others were paid.

E. Amounts received by a contractor for a project are excluded from the contractor's gross proceeds of sales or gross income derived from the business if the person who hired the contractor executes and provides a certificate to the contractor stating that the person providing the certificate is a prime contractor and is liable for the tax under article 1 of this chapter. The department shall prescribe the form of the certificate. If the contractor has reason to believe that the information contained on the certificate is erroneous or incomplete, the department may disregard the certificate. If the person who provides the certificate is not liable for the tax as a prime contractor, that person is nevertheless deemed to be the prime contractor in lieu of the contractor and is subject to the tax under this section on the gross receipts or gross proceeds received by the contractor.

F. Every person engaging or continuing in this state in the business of prime contracting or dealership of manufactured buildings shall present to the purchaser of such prime contracting or manufactured building a written receipt of the gross income or gross proceeds of sales from such activity and shall separately state the taxes to be paid pursuant to this section.

G. For the purposes of section 42-5032.01, the department shall separately account for revenues collected under the prime contracting classification from any prime contractor engaged in the preparation or construction of a multipurpose facility, and related infrastructure, that is owned, operated or leased by the tourism and sports authority pursuant to title 5, chapter 8.

H. For the purposes of section 42-5032.02, from and after September 30, 2013, the department shall separately account for revenues reported and collected under the prime contracting classification from any prime contractor engaged in the construction of any buildings and associated improvements that are for the benefit of a manufacturing facility. For the purposes of this subsection, "associated improvements" and "manufacturing facility" have the same meanings prescribed in section 42-5032.02.

I. For the purposes of section 42-5032.03 and subject to section 48-4238, beginning October 1, 2025 and each month thereafter through  December 31, 2055, the department shall separately account for revenues reported and collected under the prime contracting classification from any prime contractor engaged in the construction of any buildings and associated improvements that are for the benefit of a major league baseball facility or an adjacent building that is owned by a county stadium district pursuant to title 48, chapter 26 and operated by the county stadium district or the professional baseball franchise organization that occupies the major league baseball facility or adjacent building.  For the purposes of this subsection, "adjacent building" and "major league baseball facility" have the same meanings prescribed in section 48-4201.

J. The gross proceeds of sales or gross income derived from a contract for lawn maintenance services is not subject to tax under this section if the contract does not include landscaping activities. Lawn maintenance service is a service pursuant to section 42-5061, subsection A, paragraph 1, and includes lawn mowing and edging, weeding, repairing sprinkler heads or drip irrigation heads, seasonal replacement of flowers, refreshing gravel, lawn dethatching, seeding winter lawns, leaf and debris collection and removal, tree or shrub pruning or clipping, garden and gravel raking and applying pesticides, as defined in section 3-361, and fertilizer materials, as defined in section 3-262.

K. Except as provided in subsection P of this section, the gross proceeds of sales or gross income derived from landscaping activities is subject to tax under this section. Landscaping includes installing lawns, grading or leveling ground, installing gravel or boulders, planting trees and other plants, felling trees, removing or mulching tree stumps, removing other imbedded plants, building irrigation berms, installing railroad ties and installing underground sprinkler or watering systems.

L. The portion of gross proceeds of sales or gross income attributable to the actual direct costs of providing architectural or engineering services that are incorporated in a contract is not subject to tax under this section. For the purposes of this subsection, "direct costs" means the portion of the actual costs that are directly expended in providing architectural or engineering services.

M. Operating a landfill or a solid waste disposal facility is not subject to taxation under this section, including filling, compacting and creating vehicle access to and from cell sites within the landfill. Constructing roads to a landfill or solid waste disposal facility and constructing cells within a landfill or solid waste disposal facility may be deemed prime contracting under this section.

N. The following apply in determining the taxable situs of sales of manufactured buildings:

1. For sales in this state where the manufactured building dealer contracts to deliver the building to a setup site or to perform the setup in this state, the taxable situs is the setup site.

2. For sales in this state where the manufactured building dealer does not contract to deliver the building to a setup site or does not perform the setup, the taxable situs is the location of the dealership where the building is delivered to the buyer.

3. For sales in this state where the manufactured building dealer contracts to deliver the building to a setup site that is outside this state, the situs is outside this state and the transaction is excluded from tax.

O. The gross proceeds of sales or gross income attributable to a written contract for design phase services or professional services, executed before modification begins and with terms, conditions and pricing of all of these services separately stated in the contract from those for construction phase services, is not subject to tax under this section, regardless of whether the services are provided sequential to or concurrent with prime contracting activities that are subject to tax under this section. This subsection does not include the gross proceeds of sales or gross income attributable to construction phase services. For the purposes of this subsection:

1. "Construction phase services" means services for the execution and completion of any modification, including the following:

(a) Administration or supervision of any modification performed on the project, including team management and coordination, scheduling, cost controls, submittal process management, field management, safety program, close-out process and warranty period services.

(b) Administration or supervision of any modification performed pursuant to a punch list. For the purposes of this subdivision, "punch list" means minor items of modification work performed after substantial completion and before final completion of the project.

(c) Administration or supervision of any modification performed pursuant to change orders. For the purposes of this subdivision, "change order" means a written instrument issued after execution of a contract for modification work, providing for all of the following:

(i) The scope of a change in the modification work, contract for modification work or other contract documents.

(ii) The amount of an adjustment, if any, to the guaranteed maximum price as set in the contract for modification work. For the purposes of this item, "guaranteed maximum price" means the amount guaranteed to be the maximum amount due to a prime contractor for the performance of all modification work for the project.

(iii) The extent of an adjustment, if any, to the contract time of performance set forth in the contract.

(d) Administration or supervision of any modification performed pursuant to change directives. For the purposes of this subdivision, "change directive" means a written order directing a change in modification work before agreement on an adjustment of the guaranteed maximum price or contract time.

(e) Inspection to determine the dates of substantial completion or final completion.

(f) Preparation of any manuals, warranties, as-built drawings, spares or other items the prime contractor must furnish pursuant to the contract for modification work. For the purposes of this subdivision, "as-built drawing" means a drawing that indicates field changes made to adapt to field conditions, field changes resulting from change orders or buried and concealed installation of piping, conduit and utility services.

(g) Preparation of status reports after modification work has begun detailing the progress of work performed, including preparation of any of the following:

(i) Master schedule updates.

(ii) Modification work cash flow projection updates.

(iii) Site reports made on a periodic basis.

(iv) Identification of discrepancies, conflicts or ambiguities in modification work documents that require resolution.

(v) Identification of any health and safety issues that have arisen in connection with the modification work.

(h) Preparation of daily logs of modification work, including documentation of personnel, weather conditions and on-site occurrences.

(i) Preparation of any submittals or shop drawings used by the prime contractor to illustrate details of the modification work performed.

(j) Administration or supervision of any other activities for which a prime contractor receives a certificate for payment or certificate for final payment based on the progress of modification work performed on the project.

2. "Design phase services" means services for developing and completing a design for a project that are not construction phase services, including the following:

(a) Evaluating surveys, reports, test results or any other information on-site conditions for the project, including physical characteristics, legal limitations and utility locations for the site.

(b) Evaluating any criteria or programming objectives for the project to ascertain requirements for the project, such as physical requirements affecting cost or projected utilization of the project.

(c) Preparing drawings and specifications for architectural program documents, schematic design documents, design development documents, modification work documents or documents that identify the scope of or materials for the project.

(d) Preparing an initial schedule for the project, excluding the preparation of updates to the master schedule after modification work has begun.

(e) Preparing preliminary estimates of costs of modification work before completion of the final design of the project, including an estimate or schedule of values for any of the following:

(i) Labor, materials, machinery and equipment, tools, water, heat, utilities, transportation and other facilities and services used in the execution and completion of modification work, regardless of whether they are temporary or permanent or whether they are incorporated in the modifications.

(ii) The cost of labor and materials to be furnished by the owner of the real property.

(iii) The cost of any equipment of the owner of the real property to be assigned by the owner to the prime contractor.

(iv) The cost of any labor for installation of equipment separately provided by the owner of the real property that has been designed, specified, selected or specifically provided for in any design document for the project.

(v) Any fee paid by the owner of the real property to the prime contractor pursuant to the contract for modification work.

(vi) Any bond and insurance premiums.

(vii) Any applicable taxes.

(viii) Any contingency fees for the prime contractor that may be used before final completion of the project.

(f) Reviewing and evaluating cost estimates and project documents to prepare recommendations on site use, site improvements, selection of materials, building systems and equipment, modification feasibility, availability of materials and labor, local modification activity as related to schedules and time requirements for modification work.

(g) Preparing the plan and procedures for selection of subcontractors, including any prequalification of subcontractor candidates.

3. "Professional services" means architect services, engineer services, geologist services, land surveying services or landscape architect services that are within the scope of those services as provided in title 32, chapter 1 and for which gross proceeds of sales or gross income has not otherwise been deducted under subsection L of this section.

P. The gross proceeds of sales or gross income derived from a contract with the owner of real property or improvements to real property for the maintenance, repair, replacement or alteration of existing property is not subject to tax under this section if the contract does not include modification activities, except as specified in this subsection. The gross proceeds of sales or gross income derived from a de minimis amount of modification activity does not subject the contract or any part of the contract to tax under this section. For the purposes of this subsection:

1. Tangible personal property that is incorporated or fabricated into a project described in this subsection may be subject to the amount prescribed in section 42-5008.01.

2. Each contract is independent of any other contract, except that any change order that directly relates to the scope of work of the original contract shall be treated the same as the original contract under this chapter, regardless of the amount of modification activities included in the change order. If a change order does not directly relate to the scope of work of the original contract, the change order shall be treated as a new contract, with the tax treatment of any subsequent change order to follow the tax treatment of the contract to which the scope of work of the subsequent change order directly relates.

Q. Notwithstanding subsection P of this section, a contract that primarily involves surface or subsurface improvements to land and that is subject to title 28, chapter 19, 20 or 22 or title 34, chapter 2 or 6 is taxable under this section, even if the contract also includes vertical improvements. Agencies that are subject to procurement processes under those provisions shall include in the request for proposals a notice to bidders when those projects are subject to this section. This subsection does not apply to contracts with:

1. Community facilities districts, fire districts, county television improvement districts, community park maintenance districts, cotton pest control districts, hospital districts, pest abatement districts, health service districts, agricultural improvement districts, county free library districts, county jail districts, county stadium districts, special health care districts, public health services districts, theme park districts or revitalization districts.

2. Any special taxing district not specified in paragraph 1 of this subsection if the district does not substantially engage in the modification, maintenance, repair, replacement or alteration of surface or subsurface improvements to land.

R. Notwithstanding subsection S, paragraph 10 of this section, a person owning real property who enters into a contract for sale of the real property, who is responsible to the new owner of the property for modifications made to the property in the period subsequent to the transfer of title and who receives a consideration for the modifications is considered a prime contractor solely for purposes of taxing the gross proceeds of sale or gross income received for the modifications made subsequent to the transfer of title. The original owner's gross proceeds of sale or gross income received for the modifications shall be determined according to the following methodology:

1. If any part of the contract for sale of the property specifies amounts to be paid to the original owner for the modifications to be made in the period subsequent to the transfer of title, the amounts are included in the original owner's gross proceeds of sale or gross income under this section. Proceeds from the sale of the property that are received after transfer of title and that are unrelated to the modifications made subsequent to the transfer of title are not considered gross proceeds of sale or gross income from the modifications.

2. If the original owner enters into an agreement separate from the contract for sale of the real property providing for amounts to be paid to the original owner for the modifications to be made in the period subsequent to the transfer of title to the property, the amounts are included in the original owner's gross proceeds of sale or gross income received for the modifications made subsequent to the transfer of title.

3. If the original owner is responsible to the new owner for modifications made to the property in the period subsequent to the transfer of title and derives any gross proceeds of sale or gross income from the project subsequent to the transfer of title other than a delayed disbursement from escrow unrelated to the modifications, it is presumed that the amounts are received for the modifications made subsequent to the transfer of title unless the contrary is established by the owner through its books, records and papers kept in the regular course of business.

4. The tax base of the original owner is computed in the same manner as a prime contractor under this section.

S. For the purposes of this section:

1. "Alteration" means an activity or action that causes a direct physical change to existing property. For the purposes of this paragraph:

(a) For existing property that is properly classified as class two property under section 42-12002, paragraph 1, subdivision (c) or paragraph 2, subdivision (c) and that is used for residential purposes, class three property under section 42-12003 or class four property under section 42-12004, this paragraph does not apply if the contract amount is more than twenty-five percent of the most recent full cash value established under chapter 13, article 2 of this title as of the date of any bid for the work or the date of the contract, whichever value is higher.

(b) For all existing property other than existing property described in subdivision (a) of this paragraph, this paragraph does not apply if the contract amount is more than $750,000.

(c) Project elements may not be artificially separated from a contract to cause a project to qualify as an alteration. The department has the burden of proof that project elements have been artificially separated from a contract.

(d) If a project for which the owner and the person performing the work reasonably believed, at the inception of the contract, would be treated as an alteration under this paragraph and, on completion of the project, the project exceeded the applicable threshold described in either subdivision (a) or (b) of this paragraph by not more than twenty-five percent of the applicable threshold for any reason, the work performed under the contract qualifies as an alteration.

(e) A change order that directly relates to the scope of work of the original contract shall be treated as part of the original contract, and the contract amount shall include any amount attributable to a change order that directly relates to the scope of work of the original contract.

(f) Alteration does not include maintenance, repair or replacement.

2. "Contracting" means engaging in business as a contractor.

3. "Contractor" is synonymous with the term "builder" and means any person or organization that undertakes to or offers to undertake to, or purports to have the capacity to undertake to, or submits a bid to, or does personally or by or through others, modify any building, highway, road, railroad, excavation, manufactured building or other structure, project, development or improvement, or to do any part of such a project, including the erection of scaffolding or other structure or works in connection with such a project, and includes subcontractors and specialty contractors. For all purposes of taxation or deduction, this definition shall govern without regard to whether or not such a contractor is acting in fulfillment of a contract.

4. "Manufactured building" means a manufactured home, mobile home or factory-built building, as defined in section 41-4001.

5. "Manufactured building dealer" means a dealer who either:

(a) Is licensed pursuant to title 41, chapter 37, article 4 and who sells manufactured buildings to the final consumer.

(b) Supervises, performs or coordinates the excavation and completion of site improvements or the setup of a manufactured building, including the contracting, if any, with any subcontractor or specialty contractor for the completion of the contract.

6. "Modification" means construction, grading and leveling ground, wreckage or demolition. Modification does not include:

(a) Any project described in subsection P of this section.

(b) Any wreckage or demolition of existing property, or any other activity that is a necessary component of a project described in subsection P of this section.

(c) Any mobilization or demobilization related to a project described in subsection P of this section, such as the erection or removal of temporary facilities to be used by those persons working on the project.

7. "Modify" means to make a modification or cause a modification to be made.

8. "Owner" means the person that holds title to the real property or improvements to real property that is the subject of the work, as well as an agent of the title holder and any person with the authority to perform or authorize work on the real property or improvements, including a tenant and a property manager. For the purposes of subsection P of this section, a person who is hired by a general contractor that is hired by an owner, or a subcontractor of a general contractor that is hired by an owner, is considered to be hired by the owner.

9. "Prime contracting" means engaging in business as a prime contractor.

10. "Prime contractor" means a contractor who supervises, performs or coordinates the modification of any building, highway, road, railroad, excavation, manufactured building or other structure, project, development or improvement, including the contracting, if any, with any subcontractors or specialty contractors and who is responsible for the completion of the contract.  Except as provided in subsections E and R of this section, a person who owns real property, who engages one or more contractors to modify that real property and who does not itself modify that real property is not a prime contractor within the meaning of this paragraph regardless of the existence of a contract for sale or the subsequent sale of that real property.

11. "Replacement" means the removal from service of one component or system of existing property or tangible personal property installed in existing property, including machinery or equipment, and the installation of a new component or system or new tangible personal property, including machinery or equipment, that provides the same, a similar or an upgraded design or functionality, regardless of the contract amount and regardless of whether the existing component or system or existing tangible personal property is physically removed from the existing property.

12. "Sale of a used manufactured building" does not include a lease of a used manufactured building.
A.R.S. § 42-15305 — Arizona Code / Title 42 / Chapter 15 / Article 7 / Section 15305
42-15305 Applicability
Status: in_force

42-15305. Applicability

This article does not alter the definition of, or the characteristics used to determine ownership under applicable law.
A.R.S. § 42-17056 — Arizona Code / Title 42 / Chapter 17 / Article 2 / Section 17056
42-17056 Initial base levy limit if no primary property taxes were levied in the preceding tax year; subsequent levy amount
Status: in_force

42-17056. Initial base levy limit if no primary property taxes were levied in the preceding tax year; subsequent levy amount

A. If a county, city, town or community college district did not levy primary property taxes in the preceding tax year, the governing body shall submit a proposed amount to be raised by primary property taxes for approval of the voters.

B. The election shall be held on the third Tuesday in May before the beginning of the fiscal year in as nearly as practicable the same manner as prescribed by title 35, chapter 3, article 3. The ballot shall state that if the amount is approved by the voters, it will be the base for determining levy limitations for the county, city, town or district for subsequent fiscal years.

C. If a majority of the qualified electors voting approve the proposed levy amount for primary property taxes, the levy applicable for the county, city, town or district for the next fiscal year shall be an amount not exceeding the approved amount.

D. On acceptance by the voters, the governing body shall send a copy of the approved resolution to the property tax oversight commission.

E. If the proposed levy amount is not approved, the county, city, town or community college district shall not levy a primary property tax for that year.

F. At least twenty but not more than thirty-five years after the date of an initial approval pursuant to this section, a community college district with a primary property tax levy that was initially established pursuant to this section may resubmit a proposed amount to be raised by primary property taxes for approval by the voters.  The proposed amount must be less than or equal to two times the otherwise authorized levy amount for the same year.  The election shall be conducted as prescribed in subsection B of this section. If a majority of the qualified electors voting:

1. Approve the proposed levy amount, the levy applicable for the district for:

(a) The first tax year following approval pursuant to this paragraph must be less than or equal to the previously approved amount plus one-third of the difference between the previously approved amount and the amount approved pursuant to this paragraph.

(b) The second tax year following approval pursuant to this paragraph must be less than or equal to the previously approved amount plus two-thirds of the difference between the previously approved amount and the amount approved pursuant to this paragraph.

(c) The third tax year following approval pursuant to this paragraph and each subsequent tax year must be less than or equal to the amount approved pursuant to this paragraph.

2. Disapprove the proposed levy amount, the district shall levy a primary property tax based on the previously authorized levy and may not resubmit another proposed amount until at least two years after the proposed levy amount was disapproved.

G. This section does not apply to community college tuition financing districts formed pursuant to section 15-1409, except that the property tax oversight commission shall set a property tax levy limit that is not less than the amount required pursuant to section 15-1409, subsection C.
A.R.S. § 42-6108 — Arizona Code / Title 42 / Chapter 6 / Article 3 / Section 6108
42-6108 Tax on hotels
Status: in_force

42-6108. Tax on hotels

A. The board of supervisors of a county having a population of less than two million five hundred thousand but more than five hundred thousand persons may levy and, if levied, the department shall collect a tax on the gross proceeds of sales or gross income from the business of every person engaging or continuing in the county in a business taxed under chapter 5 of this title and classified under section 42-5070 or 42-5076.  The tax shall be levied under this section beginning January 1 or July 1, whichever date first occurs at least three months after the county resolution approving the tax levy. The rate of tax shall not exceed six per cent.

B. The tax only applies in unincorporated areas of the county.

C. At the end of each month the state treasurer shall transmit the net revenues collected pursuant to this section to the treasurer of the county levying the tax.  The county shall use:

1. Not more than thirty-four percent of these revenues for the purposes set forth in section 48-4204, subsection A, as financial participation by the county as required by that subsection.

2. Not more than sixteen percent of these revenues for the purposes of economic development under section 11-254.04. Any increase in tax imposed under this section shall not constitute a new tax for the purposes of section 11-254.04, subsection B.

3. All remaining revenues to promote and enhance tourism through the recognized tourism promotion agency in the county.
A.R.S. § 42-18301 — Arizona Code / Title 42 / Chapter 18 / Article 7 / Section 18301
42-18301 List of real property held by state under tax deed
Status: in_force

42-18301. List of real property held by state under tax deed

A. On or before the first Monday in November of each year, the county board of supervisors shall prepare a list of the real property in the county that is held by the state by tax deed.

B. The list shall include:

1. A full description of each parcel.

2. The name of the former owner, if known.

3. The total amount of taxes, interest, penalties, fees and costs, including the unpaid charges of the county treasurer and recorder.
A.R.S. § 42-5031.01 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5031.01
42-5031.01 Distribution of revenues for Indian tribal postsecondary educational institutions; definition
Status: in_force

42-5031.01. Distribution of revenues for Indian tribal postsecondary educational institutions; definition

A. Subject to subsection C of this section, each month the state treasurer shall transmit to the treasurer or other designated depository of each qualifying Indian tribe the amount of transaction privilege tax revenues received pursuant to this article in the preceding month from all sources located on the Indian reservation established for the qualifying Indian tribe as determined pursuant to section 42-5029, subsection A, paragraph 3.

B. The monies distributed pursuant to this section are for the exclusive purpose of supporting the maintenance, renewal and capital expenses of one or more community college campuses in this state that are owned, operated or chartered by each qualifying Indian tribe on its own Indian reservation. Before receiving any monies under this section, a qualifying Indian tribe shall enter into an initial compact with this state on or before September 1, 2017, signed by the governor, to account for the use of monies distributed pursuant to this section.  The compact shall:

1. Be for a term of at least twenty years.  After a hearing and review of the compact by the joint legislative budget committee held during the fourth year prior to the expiration of the compact's term, a compact may be amended and renewed for an additional term of at least twenty years with the consent of this state, signed by the governor, and the qualifying Indian tribe, signed by the chairman, president or governor of the qualifying Indian tribe.

2. Require the monies to be used primarily for capital needs, including maintenance and renewal of existing facilities at designated community college campuses on the qualifying Indian tribe's own reservation in this state.

3. Provide for audits by the auditor general of the use of the monies. The auditor general shall submit copies of each audit to the joint legislative budget committee.

4. If necessary, provide for reimbursement to the department of revenue of costs associated with implementing this section, not to exceed one hundred fifty thousand dollars, from revenues that would otherwise be paid to the qualifying Indian tribe pursuant to this section.

C. Notwithstanding subsection A of this section, the state treasurer shall not transmit in any fiscal year more than the sum of the following amounts:

1. With respect to a single community college, one million seven hundred fifty thousand dollars or more than ten percent of transaction privilege tax revenues received pursuant to this article from all sources located on the reservation, whichever is less.

2. With respect to an additional technical college located on the same Indian reservation, eight hundred seventy-five thousand dollars or more than five percent of transaction privilege tax revenues received pursuant to this article from all sources located on the reservation, whichever is less.

D. For the purposes of this section, "qualifying Indian tribe" means an Indian tribe that owns, operates and charters any community college or postsecondary educational institution located on its own reservation in this state.
A.R.S. § 42-14251 — Arizona Code / Title 42 / Chapter 14 / Article 6 / Section 14251
42-14251 Definitions
Status: in_force

42-14251. Definitions

In this article, unless the context otherwise requires:

1. "Air commerce" means the scheduled transportation by aircraft of persons or property for hire in interstate, intrastate or international transportation.

2. "Aircraft" means any device that is used or designed for navigation or flight through the air.

3. "Aircraft time" means the number of minutes in the preceding calendar year in which flight property was in the possession of an airline company.

4. "Airline company" means any person who directly or indirectly undertakes to engage in the business of scheduled air commerce.

5. "Fleet type" means aircraft type and model.

6. "Flight property" means all airline company aircraft of the types used in this state except aircraft that are permanently removed from operations.

7. "Operating", "operations" or "operated" means regularly scheduled aircraft landings or takeoffs.

8. "Original cost" means the capitalized acquisition cost to the original purchaser from the manufacturer of airframes and engines plus substantial modifications. If the acquisition cost cannot be determined, original cost means the manufacturer's original list price for the model, type and year plus substantial modifications.

9. "Person" means any individual, corporation, firm, partnership, company or association and includes a guardian, trustee, executor, administrator, receiver or conservator or any person who acts in a fiduciary capacity.

10. "Small flight property" means all airline company aircraft of the types that are used in this state, not permanently removed from operations, with a maximum passenger capacity of less than fifty-six seats and a maximum payload capacity of less than eighteen thousand pounds.

11. "State ground time" means the number of minutes that flight property is considered to be on the ground in this state during the preceding calendar year and is computed by multiplying the number of departures of flight property in this state during the preceding calendar year by forty-five.

12. "System ground time" means the number of minutes that flight property is on the ground systemwide during the preceding calendar year and is computed by subtracting the number of revenue and nonrevenue airborne minutes of all flight property during the preceding calendar year from aircraft time.
A.R.S. § 42-17002 — Arizona Code / Title 42 / Chapter 17 / Article 1 / Section 17002
42-17002 Property tax oversight commission
Status: in_force

42-17002. Property tax oversight commission

A. The property tax oversight commission is established to:

1. Further the public confidence in property tax limitations.

2. Provide a uniform methodology for determining those limitations.

3. Provide a continuing review of practices for ensuring a fair and equitable administration of the property tax laws.

B. The commission consists of:

1. The director of the department of revenue or the director's designee, who serves as chairman.

2. Four persons who are knowledgeable in the area of property tax assessment and levy, one appointed by the governor and three appointed jointly by the president of the senate and the speaker of the house of representatives. The appointive members' terms are three years.

C. An appointment to fill a vacancy on the commission resulting from other than expiration of a term is for the unexpired portion of the term only.

D. The department shall provide secretarial and staff support services to the commission.

E. The private citizen members of the commission shall receive fifty dollars per day for time spent in performing their duties.

F. The commission shall meet at least annually and, in addition, at the call of the chairman. The commission shall meet at such other times and places as convenient or necessary to conduct its affairs and shall render its findings, reports and recommendations in writing to the governor, to the director of the department of revenue and to the legislature.
A.R.S. § 42-3404 — Arizona Code / Title 42 / Chapter 3 / Article 10 / Section 3404
42-3404 Exemptions and exclusions of certain tobacco products from tobacco taxes
Status: in_force

42-3404. Exemptions and exclusions of certain tobacco products from tobacco taxes

A. The taxes imposed by this chapter do not apply to:

1. Tobacco products that are sold to the United States army, air force, navy, marine corps or coast guard exchanges and commissaries and navy or coast guard ships' stores.

2. Tobacco products that are sold to the United States department of veterans affairs.

3. Tobacco products that are non-tax-paid under subtitle E, chapter 52 of the internal revenue code and that are under internal revenue bond or customs control.

4. Tobacco products that are sold or transferred to a law enforcement agency for use in a criminal investigation if the sale or transfer is authorized by the department. A law enforcement agency authorized by the department to receive or purchase tobacco products is not required to:

(a) Be licensed as a distributor.

(b) Collect or remit the tax imposed by this chapter with respect to authorized distributions.

5. Tobacco products that are sold by a distributor licensed under section 42-3401 to a common carrier engaged in foreign passenger service or to a retailer that sells tobacco products on the facilities of the carrier that are dedicated to foreign passenger service.

6. Federally tax free tobacco products that are sold or given for delivery directly from the manufacturer under internal revenue bond to a veterans' home of this state or a hospital or domiciliary facility of the United States department of veterans affairs for gratuitous issue to veterans receiving hospitalization or domiciliary care.  The taxes are not imposed with respect to the use or consumption of the tobacco products by the institution, veteran patients or domiciliaries.

7. Tobacco products that are sold by a manufacturer to a distributor licensed under section 42-3401.

8. Tobacco products that are manufactured outside the United States and that are sold by an importer to a distributor licensed under section 42-3401.

B. Subsection A, paragraphs 1 and 2 of this section do not apply after the first day of the first calendar month beginning more than sixty days after existing federal law is amended to permit state taxation of cigarettes sold by or through federal military installations.

C. Sales of tobacco products by a licensed distributor to an instrumentality of the United States government must be supported by a separate sales invoice and a properly completed federal exemption certificate.  Each sales invoice must be numbered, be dated and show the name of the seller, the name of the purchaser and the destination.

D. This section does not affect the imposition of transaction privilege and use taxes pursuant to chapter 5 of this title to any transactions described in subsection A of this section if the transaction is otherwise subject to transaction privilege tax or use tax.

E. The exemptions and exclusions provided in subsection A of this section do not affect the taxability under this chapter of tobacco products that are sold, given or transferred to a person in this state subsequent to the transactions described in subsection A of this section.
A.R.S. § 42-5353 — Arizona Code / Title 42 / Chapter 5 / Article 8 / Section 5353
42-5353 Administration; disposition of revenues
Status: in_force

42-5353. Administration; disposition of revenues

Unless the context otherwise requires, article 1 of this chapter governs the administration of the tax imposed under this article. Monies received from the taxes collected pursuant to section 42-5352 shall be deposited in the state aviation fund established by section 28-8202.
A.R.S. § 42-15066 — Arizona Code / Title 42 / Chapter 15 / Article 2 / Section 15066
42-15066 Assessing clean rooms as personal property; definition
Status: in_force

42-15066. Assessing clean rooms as personal property; definition

A. Clean rooms that are used for manufacturing, processing, fabrication or research and development of semiconductor products shall be valued and assessed as tangible personal property.

B. For purposes of this section, "clean room" means all property that comprises or creates an environment where humidity, temperature, particulate matter and contamination are precisely controlled within specified parameters, without regard to whether the property is actually contained within that environment or whether any of the property is affixed to or incorporated into real property. Clean room:

1. Includes the integrated systems, fixtures, piping, movable partitions, lighting and all property that is necessary or adapted to reduce contamination or to control airflow, temperature, humidity, chemical purity or other environmental conditions or manufacturing tolerances, as well as the production machinery and equipment operating in conjunction with the clean room environment.

2. Does not include the building or a permanent, nonremovable component of the building that houses the clean room environment.
A.R.S. § 42-5451 — Arizona Code / Title 42 / Chapter 5 / Article 10 / Section 5451
42-5451 Definitions
Status: in_force

42-5451. Definitions

(Caution:  1998 Prop. 105 applies)

In this article, unless the context otherwise requires:

1. "Consumer," "dual licensee," "marijuana," "marijuana establishment" and "marijuana products" have the same meanings prescribed in section 36-2850.

2. "Designated caregiver," "nonprofit medical marijuana dispensary" and "qualifying patient" have the same meanings prescribed in section 36-2801.
A.R.S. § 42-1105.03 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1105.03
42-1105.03 Unauthorized disclosure; violation; classification
Status: in_force

42-1105.03. Unauthorized disclosure; violation; classification

A return preparer, electronic return preparer or electronic return transmitter is guilty of a class 3 misdemeanor if the preparer or transmitter knowingly or recklessly discloses information related to a return, statement or other document to another person who is not authorized to receive that information under this title or title 43.
A.R.S. § 42-5253 — Arizona Code / Title 42 / Chapter 5 / Article 6 / Section 5253
42-5253 Remission and distribution of revenues
Status: in_force

42-5253. Remission and distribution of revenues

A. Each provider shall remit monthly to the department the amount of tax due pursuant to section 42-5252, accompanied by an information return as prescribed by the department.

B. The department shall deposit, pursuant to sections 35-146 and 35-147, all monies remitted pursuant to this article as follows:

1. Section 42-5252, subsection A in the emergency telecommunication services revolving fund.

2. Section 42-5252, subsection B in the telecommunication fund for the deaf.
A.R.S. § 42-19110 — Arizona Code / Title 42 / Chapter 19 / Article 3 / Section 19110
42-19110 Seizure of property
Status: in_force

42-19110. Seizure of property

A. After receiving a tax bill the sheriff shall:

1. Seize the property wherever it is found.

2. Advertise the property for sale at public auction for cash within one year after the date of the seizure.

B. Under authority of the tax bill, the sheriff:

1. Shall seize the property.

2. May enter any building, dwelling, grounds or other place or enclosure in order to seize the property.

3. May call any citizen to aid the sheriff if necessary.

C. If the property is located in a manner that requires a judicial warrant to achieve entry, any magistrate may issue the warrant on a showing that probable cause exists to believe that the property described in the tax bill is so located.
A.R.S. § 42-2154 — Arizona Code / Title 42 / Chapter 2 / Article 4 / Section 2154
42-2154 Limitation on requirements of article
Status: in_force

42-2154. Limitation on requirements of article

This article does not:

1. Require any person to utilize the forms or procedures provided for in this article.

2. Eliminate other registration and licensing efforts by the department of revenue and the department of economic security.
A.R.S. § 42-11106 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11106
42-11106 Exemption for apartments for elderly residents or  residents with disabilities
Status: in_force

42-11106. Exemption for apartments for elderly residents or  residents with disabilities

Property that is used to operate a nonprofit residential apartment housing facility that is structured for persons with disabilities or persons who are sixty-two years of age or older is exempt from taxation if either of the following circumstances applies:

1. The property is located adjacent to property that is exempt from taxation under section 42-11105, subsection B and is owned and operated by the same person or association that owns that adjacent property.

2. The federal, state or local government or a nonprofit organization pays a subsidy and:

(a) The payment or subsidy is a substantial amount in relation either to the amount given or to the total annual operating expenses to pay for principal, interest and operating expenses.

(b) The nonprofit organization is not created or operated for the primary purpose of providing the subsidy or payment.
A.R.S. § 42-2078 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2078
42-2078 New interpretation or application of law; affirmative defense; definition
Status: in_force

42-2078. New interpretation or application of law; affirmative defense; definition

A. Unless expressly authorized by law, the department shall not apply any newly enacted law retroactively or in a manner that will penalize a taxpayer for complying with prior law.

B. If the department adopts a new interpretation or application of any provision of this title or title 43 or determines that any of those provisions applies to a new or additional category or type of taxpayer, and the change in interpretation or application is not due to a change in the law:

1. The change in interpretation or application applies prospectively unless it is favorable to taxpayers.

2. The department shall not assess any tax, penalty or interest retroactively based on the change in interpretation or application.

3. The change is an affirmative defense in any administrative or judicial action for retroactive assessment of tax, interest and penalties to taxable periods before the new interpretation or application was adopted.

C. Tax liabilities, penalties and interest paid before a new interpretation or application of chapter 5 of this title by the department shall not be refunded unless the taxpayer requesting the refund provides evidence satisfactory to the department that the amounts will be refunded to the person who paid an added charge to cover the tax.

D. For the purposes of this section, "new interpretation or application" includes policies and procedures adopted by administrative rule, tax ruling, tax procedure or instructions to a tax return.
A.R.S. § 42-18264 — Arizona Code / Title 42 / Chapter 18 / Article 6.1 / Section 18264
42-18264 Personal notice by certified mail
Status: in_force

42-18264. Personal notice by certified mail

A. At least ninety days before the date of delivering a treasurer's deed on a parcel of property under this article the county treasurer shall mail notice to the owner of the parcel as shown on the current tax roll and any other party who is identified in the title search conducted under section 42-18263 as having a legal or equitable interest in the property.

B. The notice shall be sent by certified mail, return receipt requested, to the person's last known address.

C. The notice shall state that the county board of supervisors has applied for a treasurer's deed on behalf of this state and shall include a description of the property, the date the tax lien was assigned and the last date for redeeming the property. The notice may be in the following form:

Official Notice

Treasurer's office, ________________ county, state of Arizona.

The board of supervisors of ________________ county, acting on behalf of the state of Arizona, has applied for a treasurer's deed to the following described real property, owned by ________________ and located in ___________________ county, Arizona:

(Description)

A tax lien was assigned to the state of Arizona on    (Date)   for taxes, interest, penalties and charges. If this tax lien is not redeemed according to law before  (Date)  , I will convey the property to the state of Arizona.

____________________________

County Treasurer

____________________________

State of Arizona
A.R.S. § 42-6008 — Arizona Code / Title 42 / Chapter 6 / Article 1 / Section 6008
42-6008 Municipal interest rates
Status: in_force

42-6008. Municipal interest rates

A city or town that levies and collects a tax under the model city tax code shall compute interest on a deficiency assessment or a claim for refund or credit at the rate and in the manner prescribed by section 42-1123, subsection A.
A.R.S. § 42-2101 — Arizona Code / Title 42 / Chapter 2 / Article 3 / Section 2101
42-2101 Private taxpayer rulings; request; revocation or modification; taxpayer information ruling; definitions
Status: in_force

42-2101. Private taxpayer rulings; request; revocation or modification; taxpayer information ruling; definitions

A. The department may issue private taxpayer rulings to taxpayers and potential taxpayers on request. Each request shall be in writing and shall:

1. State the name, address and, if applicable, taxpayer identifying number of the taxpayer or potential taxpayer who requests the ruling.

2. Describe all facts that are relevant to the requested ruling.

3. State whether, to the best knowledge of the taxpayer or potential taxpayer, the issue or related issues are being considered by the department in connection with an active audit, protest or appeal that involves the taxpayer or potential taxpayer and whether the same request has been or is being submitted to another taxing authority for a ruling.

4. Be signed by the taxpayer or potential taxpayer who makes the request or by an authorized representative of the taxpayer or potential taxpayer.

B. A taxpayer ruling request that complies with subsection A, paragraphs 2 and 3 of this section and that is signed by a representative of a taxpayer or potential taxpayer shall be considered a request for a taxpayer information ruling instead of a private taxpayer ruling.

C. A private taxpayer ruling or taxpayer information ruling may be revoked or modified by either:

1. A change or clarification in the law that was applicable at the time the ruling was issued, including changes or clarifications caused by legislation, adopted administrative rules and court decisions.

2. Actual written notice by the department to the last known address of the taxpayer or potential taxpayer of the revocation or modification of the private taxpayer ruling or taxpayer information ruling if the taxpayer identifying information has been disclosed to the department pursuant to subsection E of this section. If taxpayer identifying information has not been disclosed, written notice by the department to the last known address of the taxpayer representative who requested the ruling constitutes notice to the taxpayer or potential taxpayer.

D. With respect to the taxpayer or prospective taxpayer to whom the private taxpayer ruling was issued, the revocation or modification of a private taxpayer ruling shall not be applied retroactively to tax periods or tax years before the effective date of the revocation or modification, and the department shall not assess any penalty or tax attributable to erroneous advice that it furnished to the taxpayer or potential taxpayer in the private taxpayer ruling if:

1. The taxpayer reasonably relied on the private taxpayer ruling.

2. The penalty or tax did not result either from a failure by the taxpayer to provide adequate or accurate information or from a change in the information.

E. Subsection D of this section applies to a taxpayer information ruling if the taxpayer or potential taxpayer provides its name, address, identifying number, if applicable, and authorization pursuant to section 42-2003, subsection A, paragraph 1 for the representative of the taxpayer or potential taxpayer before the date the department publishes the ruling.  The department shall notify the representative of the taxpayer or potential taxpayer of the proposed publication date.  If the director has determined that the taxpayer information ruling should not be published pursuant to subsection M of this section, subsection D of this section applies if the taxpayer or potential taxpayer provides the identifying information before the date specified by the department on issuing the taxpayer information ruling to the representative.  If the taxpayer or potential taxpayer does not provide the department with the identifying information and representative authorization before the proposed publication date, or for an unpublished ruling, the date specified by the department, the taxpayer information ruling is not binding on the department for the purpose of abating interest, penalty or tax.

F. A private taxpayer ruling or taxpayer information ruling may not be relied on, cited or introduced into evidence in any proceeding by a taxpayer other than the taxpayer who has received the private taxpayer ruling.

G. A taxpayer may apply for an administrative hearing to determine the propriety of a retroactive application of a revoked or modified private taxpayer ruling by filing a written petition with the department pursuant to section 42-1251 within forty-five days after receiving written notice of the department's intent to retroactively apply a revoked or modified private taxpayer ruling. This subsection applies to a taxpayer information ruling if the taxpayer has disclosed the taxpayer's identifying information pursuant to subsection E of this section.

H. A private taxpayer ruling or taxpayer information ruling constitutes the department's interpretation of the law or rules only as they apply to the taxpayer making, and the particular facts contained in, the request.

I. A private taxpayer ruling or taxpayer information ruling may be issued only if no tax has accrued with respect to the transactions, events or facts contained in the request. The department may issue a private taxpayer ruling or taxpayer information ruling addressing a taxpayer's ongoing business activities, except that the ruling applies only to transactions that occur or tax liabilities that accrue from and after the date the taxpayer receives the ruling.

J. Within thirty days after receiving a written request pursuant to subsection A of this section, the department shall meet with the requestor to discuss the facts and circumstances pertaining to the request, at a time and place designated by the department, unless the requestor waives this meeting. The department shall issue private taxpayer rulings or taxpayer information rulings within ninety days after receiving the written request, unless the department and the requestor agree to delay the ruling. If the ruling is expected to be delayed, the department shall notify the requestor of the basis for the proposed delay and the proposed date of issuance.  Pursuant to subsection A of this section, the department may decline to issue a ruling, and this subsection does not require the department to issue a ruling. If the department declines to issue a ruling, the department shall issue appropriate written assistance or advice that explains the reason the department is declining to issue a ruling and provide a general discussion of relevant tax principles or applications.

K. The department shall provide the requestor with a draft of the private taxpayer ruling or taxpayer information ruling at least thirty days before issuing the ruling pursuant to subsection J of this section. If requested by the requestor, the department shall meet with the requestor within fourteen days after providing the draft ruling, at a time and place designated by the department, to discuss the contents of the draft ruling.

L. The department shall maintain the private taxpayer ruling or taxpayer information ruling as a public record and make it available at a reasonable cost for public inspection and copying. The text of private taxpayer or taxpayer information rulings is open to public inspection subject to the confidentiality requirements prescribed by article 1 of this chapter.

M. At the time of making a private taxpayer ruling or taxpayer information ruling request, a taxpayer or potential taxpayer may submit a written request that the ruling not be published due to concerns about confidentiality or other disclosed reasons.  If the director determines that the ruling should not be published and the taxpayer requests that the ruling be kept confidential, the ruling shall be deemed confidential for the purpose of section 39-121.01, subsection D, paragraph 2. If the director determines that the ruling should be published and the taxpayer requests that the ruling be kept confidential, the taxpayer may withdraw the ruling request, and the department shall not proceed with a ruling if the request is withdrawn. Notwithstanding section 41-1092.02, the decision of the director to publish is not an appealable agency action as defined in section 41-1092 and is not subject to appeal by the taxpayer.

N. For the purposes of this section:

1. "Private taxpayer ruling" means a written determination by the department issued on or after September 21, 1991 that interprets and applies one or more statutes contained in this title or title 43 and any applicable administrative rules that the department has adopted to the specific prospective facts described in the request for a private taxpayer ruling.

2. "Taxpayer information ruling" means a written determination by the department issued on or after September 26, 2008 that interprets and applies one or more statutes contained in this title or title 43 and any applicable administrative rules that the department has adopted to the specific prospective facts described in a request for a taxpayer information ruling.
A.R.S. § 42-18153 — Arizona Code / Title 42 / Chapter 18 / Article 4 / Section 18153
42-18153 Amount required for redemption
Status: in_force

42-18153. Amount required for redemption

To redeem a real property tax lien, a person must pay to the county treasurer:

1. The amount for which the real property tax lien was sold, with interest at the rate stated in the certificate of purchase.

2. The amount of all taxes accruing on the real property after the sale and paid by the purchaser and endorsed on the certificate of purchase, with interest on the subsequent taxes at the same rate as stated in the certificate of purchase.

3. Any statutory fees paid by the purchaser or the purchaser's assigns in connection with the certificate, except the processing fee imposed by section 42-18116, subsection C, with interest at the rate stated in the certificate of purchase except as otherwise provided by this chapter.
A.R.S. § 42-1303 — Arizona Code / Title 42 / Chapter 1 / Article 7 / Section 1303
42-1303 Duties of department of revenue; annual report
Status: in_force

42-1303. Duties of department of revenue; annual report

The department shall administer this article and shall:

1. Monitor the implementation and operation of this article and continually evaluate the progress made in the military reuse zone.

2. Assist an employer or prospective employer in a zone to obtain the benefits of any incentive authorized by this article.

3. Submit an annual written report to the governor evaluating the effectiveness of the program with respect to each zone, stating the amount of foregone tax revenue due to the incentives offered pursuant to section  42-1302, reporting any abuses and presenting any suggestions to improve the program. The report is due on or before March 1, beginning in the first full calendar year after the zone is established and ending in the first full calendar year after the zone is terminated.

4. Adopt rules as necessary to administer this article.

5. Provide information regarding military reuse zones on request and conduct informational and instructional seminars and training.
A.R.S. § 42-15006 — Arizona Code / Title 42 / Chapter 15 / Article 1 / Section 15006
42-15006 Assessed valuation of class six property
Status: in_force

42-15006. Assessed valuation of class six property

The assessed valuation of class six property described in section 42-12006 is five per cent of the full cash value or limited valuation of class six property, as applicable.
A.R.S. § 42-1251.01 — Arizona Code / Title 42 / Chapter 1 / Article 6 / Section 1251.01
42-1251.01 Appeals of suspension, revocation or refusal to renew liquor licenses; hearings; definition
Status: in_force

42-1251.01. Appeals of suspension, revocation or refusal to renew liquor licenses; hearings; definition

A. A suspension, revocation or refusal to renew a liquor license by the director of the department of liquor licenses and control pursuant to section 4-210, subsection A, paragraph 5 are considered a contested case.

B. The aggrieved party may appeal the suspension, revocation or refusal to renew by the director pursuant to section 4-210, subsection A, paragraph 5 based on a contention that the business is either:

1. Not delinquent on any taxes, penalties or interest owed to this state or a political subdivision of this state.

2. Delinquent on its taxes, penalties and interest for less than one hundred twenty days.

3. Delinquent on its taxes, penalties and interest in an amount that totals $250 or less.

C. The aggrieved party shall file the appeal in writing with the department of revenue within fifteen days after service of the notice of the decision of the director.  The decision of the director is suspended until the determination of any appeal by the office of administrative hearings.

D. An administrative law judge shall conduct a hearing on the appeal pursuant to title 41, chapter 6, article 10 and may accept any relevant and material evidence and testimony and may exercise the actions prescribed by section 4-112, subsection F or section 12-2212. At the hearing, an attorney for or a corporate officer or employee of a corporation may represent the corporation.

E. A decision issued by the director is not final for purposes of appeal to the superior court until a decision has been issued by the office of administrative hearings.

F. The office of administrative hearings may affirm, reverse or modify any decision issued by the director.

G. For the purposes of this section, "director" means the director of the department of liquor licenses and control.
A.R.S. § 42-18235 — Arizona Code / Title 42 / Chapter 18 / Article 6 / Section 18235
42-18235 Payment of bid; qualified entity's deed
Status: in_force

42-18235. Payment of bid; qualified entity's deed

A. The highest bidder at the sale, other than the judgment holder to the extent of the credit bid, shall pay the price bid by not later than 5:00 p.m. mountain standard time of the day after the sale, other than a Saturday, Sunday or legal holiday.  If the highest bidder fails to pay the amount bid for the property struck off to the bidder at the sale, the qualified entity, in the qualified entity's sole discretion, shall either continue the sale to reopen bidding or immediately offer the property to the second highest bidder who may purchase the property at that bidder's bid price. The deposit of the highest bidder who fails to pay the amount bid shall be applied to the costs of facilitating the sale and the balance, if any, and treated as additional sale proceeds to be distributed pursuant to section 42-18236, subsection A. If the second highest bidder does not pay that bidder's bid price by 5:00 p.m. mountain standard time of the next day, excluding Saturdays, Sundays and legal holidays after the qualified entity offers the property to that bidder, the qualified entity shall either continue the sale to reopen bidding or offer the property to each of the prior bidders on successive days excluding Saturdays, Sundays and legal holidays in order of their highest bid, until a bid price is paid, or if there is no other bidder, the sale shall be deemed to be continued to a time and place designated by the qualified entity, or if not designated, the sale shall be continued to the same place and at the same time twenty-eight days after the last scheduled sale date. If the twenty-eighth day is a Saturday, Sunday or legal holiday, the sale shall be continued to the next business day. If the sale is continued, the qualified entity shall provide notice of the continuation of the sale by registered or certified mail, with postage prepaid, to all bidders who provide their names, addresses and telephone numbers in writing to the qualified entity. In addition to the forfeit of deposit, a highest bidder who fails to pay the amount bid by that bidder is liable to any person who suffers loss or expenses as a result, including attorney fees. In any subsequent sale of property, the qualified entity may refuse to accept any bid of that person. In any sale that is continued pursuant to this subsection, the qualified entity shall reject a bid from any previous bidder who elected not to pay that bidder's bid price.

B. The price bid shall be paid at the office of the qualified entity or the qualified entity's agent, or any other reasonable place designated by the qualified entity. The payment of the bid price may be made at a later time if agreed on in writing by the qualified entity.  Within seven business days after receipt of payment by the qualified entity or the qualified entity's agent, made in a form that is satisfactory to the qualified entity, the qualified entity shall execute and submit the qualified entity's deed to the county recorder for recording and, on request, shall provide an unrecorded copy of the signed qualified entity's deed to the purchaser. The recording of the qualified entity's deed on sale constitutes delivery of the deed to the purchaser.  The qualified entity is not liable for any damages resulting from the failure to record the deed on sale after physical delivery of the deed to the purchaser. The deed shall include the following information:

1. The date, court action number and name of the judgment ordering the sale of the property.

2. The name of the purchaser.

3. The property description.

4. The date of the conveyance.

5. A formal acknowledgment by the qualified entity.

C. All persons to whom the qualified entity mails a notice of a sale pursuant to section 42-18232 shall waive all defenses and objections to the sale not raised in an action that results in an injunction before the scheduled date of the sale. A copy of the injunction shall be delivered to the qualified entity within twenty-four hours after the order is entered.

D. A sale is not complete if the sale violates subsection C of this section because of an undisclosed order entered by the court within the time provided for in subsection C of this section. A sale held in violation of subsection C of this section shall be continued to a date, time and place announced by the qualified entity at the sale and shall comply with section 42-18234. If not announced, the sale shall be continued to the same place and at the same time twenty-eight days later.  If the twenty-eighth day falls on a Saturday, Sunday or legal holiday, the sale shall be continued to the next business day.

E. The deed conveyed pursuant to this section shall operate to convey to the purchaser title of the purchased property. That conveyance shall be absolute without right of redemption and clear of all subordinate liens, claims or interests.
A.R.S. § 42-2068 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2068
42-2068 Suspension of running of period of limitations during taxpayer disability
Status: in_force

42-2068. Suspension of running of period of limitations during taxpayer disability

A. Notwithstanding section 42-1106, the running of the statute of limitations for refunds is suspended if an individual, as defined in section 43-104, is financially disabled and eligible for equitable tolling of the statute of limitations for refunds under section 6511(h) of the internal revenue code. The department shall suspend the statute of limitations during any period of a qualifying individual's life that the individual is financially disabled.

B. A determination under this section may be appealed pursuant to section 42-1251 or 42-1253.
A.R.S. § 42-15204 — Arizona Code / Title 42 / Chapter 15 / Article 5 / Section 15204
42-15204 Transition from personal property to real property roll
Status: in_force

42-15204. Transition from personal property to real property roll

After the affidavit of affixture has been recorded, the mobile home shall remain on the personal property tax roll until the next real and personal property tax rolls are prepared, at which time the mobile home shall be transferred from the personal property tax roll to the real property tax roll and shall be considered for all purposes to be a fixture and a real property improvement.
A.R.S. § 42-5042 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5042
42-5042 Online lodging operators; requirements; civil penalty; definitions
Status: in_force

42-5042. Online lodging operators; requirements; civil penalty; definitions

A. An online lodging operator may not offer for rent or rent a lodging accommodation without a current transaction privilege tax license.  The online lodging operator shall list the transaction privilege tax license number on each advertisement for each lodging accommodation the online lodging operator maintains, including online lodging marketplace postings. An online lodging operator that fails to comply with this subsection shall pay a civil penalty of $250 for a first offense and $1,000 for a second or any subsequent offense.

B. For the purposes of this section:

1. "Lodging accommodation" has the same meaning prescribed in section 42-5076.

2. "Online lodging marketplace" has the same meaning prescribed in section 42-5076.

3. "Online lodging operator" has the same meaning prescribed in section 42-5076 and includes an owner of a vacation rental or short-term rental that is not offered through an online lodging marketplace.

4. "Vacation rental" and "short-term rental" have the same meanings prescribed in section 9-500.39 or 11-269.17.

5. "Verified violation" has the same meaning prescribed in section 9-500.39 or 11-269.17.
A.R.S. § 42-5251 — Arizona Code / Title 42 / Chapter 5 / Article 6 / Section 5251
42-5251 Definitions
Status: in_force

42-5251. Definitions

In this article, unless the context otherwise requires:

1. "Customer" means a person or entity in whose name telephone or telecommunication services are rendered, as evidenced by a signature on an application or contract for service or by receipt or payment of bills regularly issued in the person's or entity's name.

2. "Emergency telecommunication services" means telecommunication services or systems that use number 911 or a similarly designated telephone number for emergency calls.

3. "Exchange access services" means telephone or telecommunication exchange access lines or channels that provide local access from the premises of a customer to the local telecommunications network to effect the transfer of information.

4. "Prepaid wireless telecommunications service" means wireless services that allow 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.

5. "Provider" means any of the following:

(a) A public service corporation that offers telephone or telecommunications services pursuant to title 40 and that provides exchange access services.

(b) A supplier of wireless services.

(c) A supplier of any combination of wire and wireless services.

6. "Wireless services" means a commercial mobile service, as defined by 47 Code of Federal Regulations section 20.3, as amended.
A.R.S. § 42-13002 — Arizona Code / Title 42 / Chapter 13 / Article 1 / Section 13002
42-13002 Relationship between department and county assessors
Status: in_force

42-13002. Relationship between department and county assessors

A. The department shall:

1. Exercise general supervision over county assessors in administering the property tax laws to ensure that all property is uniformly valued for property tax purposes.

2. Prescribe forms to be used by county assessors for:

(a) Listing and valuing property for tax purposes.

(b) Reporting changes in valuations.

(c) Such other purposes as the department may require under this title.

3. Assist county assessors:

(a) In maintaining uniform maps and records.

(b) In placing on the rolls the valuations determined under this chapter.

(c) To ensure a uniform valuation of all property throughout the state for property tax purposes, including providing the services of department personnel to the assessors. The department may charge to the county the costs of department personnel provided to that county.

B. The department may:

1. Require the reclassification of property, if necessary.

2. Require information from the county assessor's office and the county treasurer's office to verify compliance with the procedures prescribed by section 42-12052.

3. Audit the valuation of new construction as determined by each county as prescribed by section 42-17051.

C. The director and county assessors shall meet at the state capitol, or at a place designated by the director, at least twice each year to consider matters relating to property taxation. The traveling expenses of assessors in attending these meetings shall be paid by the respective counties.
A.R.S. § 42-1105 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1105
42-1105 Taxpayer identification, verification and records; retention
Status: in_force

42-1105. Taxpayer identification, verification and records; retention

A. The federal taxpayer identification number, assigned pursuant to section 6109 of the internal revenue code, is the taxpayer identifier for purposes of the taxes administered pursuant to this article. Each person who is required to make a return, statement or other document shall include the identifier in order to secure the person's proper identification. If the return, statement or other document is made, electronically or otherwise, by another person on behalf of the taxpayer, the taxpayer shall furnish the identifier to the other person, and the person shall furnish both the taxpayer's identifier and the person's own identifier with the return, statement or document.

B. The department may prescribe by administrative rule alternative methods for signing, subscribing or verifying a return, statement or other document required or authorized to be filed with the department that have the same validity and consequence as the actual signature or written declaration of the taxpayer or other person required to sign, subscribe or verify the return, statement or other document.  While the department is adopting a rule prescribing alternative methods for signing, subscribing or verifying a return, statement or other document, the director, by tax ruling, may waive the requirement of a signature for a particular type or class of return, statement or other document required to be filed with the department.  This subsection does not apply if the alternative method for signing a return, statement or other document is an electronic signature. The department shall accept or require electronic signatures in the manner prescribed in section 42-1131.  For purposes of this subsection, "tax ruling" has the same meaning prescribed in section 42-2052.

C. A person who is a return preparer or an electronic return preparer shall furnish a completed copy of the return, statement or other document to the taxpayer no later than the time the return, statement or other document is presented for the taxpayer's signature.

D. Except as provided in section 42-3010, every person who is subject to the taxes administered pursuant to this article shall keep and preserve copies of filed tax returns, including any attachments to the tax return, any signature documents used for the tax return, suitable records and other books and accounts necessary to determine the tax for which the person is liable for the period prescribed in section 42-1104.  The books, records and accounts shall be open for inspection at any reasonable time by the department or its authorized agent.

E. Except as provided in section 42-3010, a return preparer or electronic return preparer shall keep copies of the return, statement or other document for six years for transaction privilege and use tax returns and four years for all other returns, statements and other documents following the date on which the return, statement or other document was due to be filed or was presented to the taxpayer for signature, whichever is later.

F. Except as provided in section 42-3010, the department may require by administrative rule electronic return preparers to keep for each prepared return, statement or other document the following documents for six years for transaction privilege and use tax returns and four years for all other returns, statements and other documents following the later of either the date on which the return, statement or other document was due to be filed with the department or was presented to the taxpayer for signature:

1. The signature document or tax return form bearing the taxpayer's original signature in a manner prescribed by the department by administrative rule or tax ruling.

2. Any attachments to the return, statement or other document required to be submitted to the department if the return, statement or other document had not been electronically transmitted to the department.

G. The operator of a swap meet, flea market, fair, carnival, festival, circus or other transient selling event shall maintain a current list of vendors conducting business on the premises as sellers.  The list shall include each vendor name, business name and business address.  On written notice, the department may require an operator to submit a copy of the list at any time to the department.

H. For at least the period of time prescribed by section 42-1104, the department shall retain any return, statement or other document as a record pursuant to sections 41-151.14, 41-151.15, 41-151.16, 41-151.17 and 41-151.19. Anything submitted with the return, statement or other document that is not required, authorized or requested by the department is not part of the record and may be destroyed, unless it is, at the department's reasonable discretion, of more than de minimis value.  Copies of original documents of which the department reasonably expects the taxpayer has retained any originals are presumed to be of de minimis value for purposes of this section. If the department determines that any document that is not required, authorized or requested by the department pursuant to this subsection is of more than de minimis value, within ten days after receipt the department shall notify the taxpayer in writing or by electronic means of its intent to destroy the document. If the taxpayer requests the return of any document included in the notice, the department shall immediately comply, although the director may require the taxpayer to pay any shipping costs to return the document. If the taxpayer does not request the return of the documents within thirty days after the date on the notice or the taxpayer consents to the destruction of the documents, whichever occurs first, the department may destroy the documents included in the notice.
A.R.S. § 42-5351 — Arizona Code / Title 42 / Chapter 5 / Article 8 / Section 5351
42-5351 Definitions
Status: in_force

42-5351. Definitions

In this article, unless the context otherwise requires:

1. "Jet fuel":

(a) Means crude oil or any fraction of crude oil which is liquid at sixty degrees Fahrenheit and 14.7 pounds per square inch absolute, and petroleum-based substances comprised of a complex blend of hydrocarbons derived from crude oil through processes of separation, conversion, upgrading and finishing, such as motor fuels, residual fuel oils, lubricants, petroleum solvents and used oils when these products are expressly manufactured and blended for the purpose of effectively and efficiently operating jet or turbine powered aircraft.

(b) Includes:

(i) An aviation turbine fuel that consists of conventional and synthetic blending components that can be used without the need to modify aircraft engines and existing fuel distribution infrastructure.

(ii) jet fuels derived from coprocessed feedstocks at a conventional petroleum refinery.

2. "Person" includes an individual, firm, partnership, joint venture, association, corporation, estate, trust, receiver or syndicate, this state or a county, city, municipality, district or any other political subdivision or agency of this state.

3. "Retail sale" means a sale for any purpose other than a sale for resale in the regular course of business.

4. "Retailer" includes every person engaging or continuing in the business of selling jet fuel for storage, use or other consumption or in the business of selling jet fuel owned by that person or others for storage, use or other consumption. If in the opinion of the department it is necessary for the efficient administration of this article to regard any salesmen, representatives, peddlers or canvassers as the agents of the dealers, distributors, supervisors or employers under whom they operate or from whom they obtain the jet fuel sold by them, regardless of whether they are selling on their own behalf or on behalf of such dealers, distributors, supervisors or employers, the department may so regard them and may regard the dealers, distributors, supervisors or employers as retailers for purposes of this article.

5. "Storage" means keeping or retaining jet fuel purchased from a retailer for any purpose except sale in the regular course of business or subsequent use solely outside this state.

6. "Use or consumption" means the exercise of any right or power over jet fuel incidental to owning the fuel except holding for sale or selling the fuel in the regular course of business.
A.R.S. § 42-3001 — Arizona Code / Title 42 / Chapter 3 / Article 1 / Section 3001
42-3001 Definitions
Status: in_force

42-3001. Definitions

In this chapter, unless the context otherwise requires:

1. "Affix" and "affixed" include imprinting tax meter stamps on packages and individual containers as authorized by the department.

2. "Brand family" has the same meaning prescribed in section 44-7111.

3. "Cavendish" means a tobacco product that is smoked from a pipe and that meets one of the following criteria:

(a) Is described as cavendish, as containing cavendish or as a cavendish blend on its packaging, labeling or promotional materials.

(b) Appears to have been processed or manufactured with an amount of flavorings and humectants that exceeds twenty percent of the weight of the tobacco contained in the product.

(c) Appears to be blended with or contain a tobacco product described in subdivision (b) of this paragraph.

4. "Cider" means vinous liquor that is made from the normal alcoholic fermentation of the juice of sound, ripe apples, pears or other pome fruit, including flavored, sparkling and carbonated cider and cider made from condensed apple, pear or other pome fruit must, and that contains more than one-half of one percent of alcohol by volume but not more than seven percent of alcohol by volume.

5. "Cigar" means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco other than any roll of tobacco that is a cigarette, as defined in paragraph 6, subdivision (b) of this section.

6. "Cigarette" means either of the following:

(a) Any roll of tobacco wrapped in paper or any substance not containing tobacco.

(b) Any roll of tobacco wrapped in any substance containing tobacco that, because of its appearance, the type of tobacco used in the filler or its packaging and labeling, is likely to be offered to or purchased by a consumer as a cigarette described in subdivision (a) of this paragraph.  This subdivision shall be interpreted consistently with the classification guidelines established by the federal alcohol and tobacco tax and trade bureau.

7. "Consumer" means a person in this state that comes into possession of any luxury subject to the tax imposed by this chapter and that, on coming into possession of the luxury, is not a distributor intending to sell or distribute the luxury, a retailer or a wholesaler.

8. "Craft distiller" means a distiller in the United States or in a territory or possession of the United States that holds a license pursuant to section 4-205.10.

9. "Distributor" means any person that manufactures, produces, ships, transports or imports into this state or in any manner acquires or possesses for the purpose of making the first sale of the following:

(a) Cigarettes without Arizona tax stamps affixed as required by this article.

(b) Roll-your-own tobacco or other tobacco products on which the taxes have not been paid as required by this chapter.

10. "Farm winery" has the same meaning prescribed in section 4-101.

11. "First sale" means the initial sale or distribution in intrastate commerce or the initial use or consumption of cigarettes, roll-your-own tobacco or other tobacco products.

12. "Luxury" means any article, object or device on which a tax is imposed under this chapter.

13. "Malt liquor" means any liquid that contains more than one-half of one percent alcohol by volume and that is made by the process of fermentation and not distillation of hops or grains, but not including:

(a) Liquids made by the process of distillation of such substances.

(b) Medicines that are unsuitable for beverage purposes.

14. "Master settlement agreement" has the same meaning prescribed in section 44-7101.

15. "Microbrewery" has the same meaning prescribed in section 4-101.

16. "Nonparticipating manufacturer" has the same meaning prescribed in section 44-7111.

17. "Other tobacco products" means tobacco products other than cigarettes and roll-your-own tobacco.

18. "Participating manufacturer" has the same meaning prescribed in section 44-7111.

19. "Person" means any individual, firm, partnership, joint venture, association, corporation, municipal corporation, estate, trust, club, society or other group or combination acting as a unit, and the plural as well as the singular number.

20. "Place of business" means a building, facility site or location where an order is received or where tobacco products are sold, distributed or transferred.  Place of business does not include a vehicle.

21. "Retailer" means any person that comes into possession of any luxury subject to the taxes imposed by this chapter for the purpose of selling it for consumption and not for resale.

22. "Roll-your-own tobacco" means any tobacco that, because of its appearance, type, packaging or labeling, is suitable for use and likely to be offered to or purchased by consumers as tobacco for making cigarettes. This paragraph shall be interpreted consistently with the term as used in section 44-7101. This paragraph shall be interpreted consistently with the classification guidelines established by the federal alcohol and tobacco tax and trade bureau.

23. "Smoking tobacco" means any tobacco that, because of its appearance, type, packaging, labeling or promotion, is suitable for use and likely to be offered to or purchased by consumers as tobacco for making cigarettes or otherwise consumed by burning. Smoking tobacco includes pipe tobacco and roll-your-own tobacco.

24. "Spirituous liquor" means any liquid that contains more than one-half of one percent alcohol by volume, that is produced by distillation of any fermented substance and that is used or prepared for use as a beverage. Spirituous liquor does not include medicines that are unsuitable for beverage purposes.

25. "Tobacco product manufacturer" has the same meaning prescribed in section 44-7101.

26. "Tobacco products" means all luxuries included in section 42-3052, paragraphs 5 through 9.

27. "Vehicle" means a device in, on or by which a person or property is or may be transported or drawn on the roads of this state regardless of the means by which it is propelled or whether it runs on a track.

28. "Vinous liquor" means any liquid that contains more than one-half of one percent alcohol by volume and that is made by the process of fermentation of grapes, berries, fruits, vegetables or other substances but does not include:

(a) Liquids in which hops or grains are used in the process of fermentation.

(b) Liquids made by the process of distillation of hops or grains.

(c) Medicines that are unsuitable for beverage purposes.

29. "Wholesaler" means a person that sells any spirituous, vinous or malt liquor taxed under this chapter to retail dealers or for the purposes of resale only.
A.R.S. § 42-2251 — Arizona Code / Title 42 / Chapter 2 / Article 6 / Section 2251
42-2251 Definitions
Status: in_force

42-2251. Definitions

In this article, unless the context otherwise requires:

1. "Computer software executable code" includes:

(a) Any object code, machine code or other code that is readable by a computer when loaded into its memory and used directly by the computer to execute instructions.

(b) Any related user manuals.

2. "Computer software source code" includes:

(a) The code written by a programmer using a programming language that is comprehensible to appropriately trained persons and is not capable of directly being used to give instructions to a computer.

(b) Related programmers’ notes, design documents, memoranda and similar documentation.

(c) Related customer communications.

3. "Owner", with respect to any software, includes the developer of the software.

4. "Related person" has the same meaning prescribed by section 267 or 707(b) of the internal revenue code.

5. "Return" has the same meaning prescribed by section 42-2001.

6. "Software" includes computer software source code and computer software executable code.

7. "Tax-related computer software source code" means the computer source code for any computer software program intended for accounting, tax return preparation or compliance or tax planning.
A.R.S. § 42-16213 — Arizona Code / Title 42 / Chapter 16 / Article 5 / Section 16213
42-16213 Findings and judgment
Status: in_force

42-16213. Findings and judgment

A. If the court finds that the valuation is excessive or insufficient, the court shall find the property's full cash value. The court may find a full cash value that is higher or lower than the full cash value that was appealed regardless of which party filed the appeal, except as follows:

1. If the appeal is taken by a county assessor and the court finds that the valuation is insufficient, the court's finding of the real property's full cash value shall be not greater than the full cash value that was appealed by the taxpayer to the board of equalization.

2. Paragraph 1 of this subsection does not apply if the valuation of the property for the tax year was set pursuant to section 42-16002, subsection B.

B. If the court finds that the valuation is:

1. Excessive, the court shall render judgment for the taxpayer and against the state or county, whichever is appropriate, in an amount equal to the excess in taxes levied and assessed together with the costs of the appeal.

2. Correct, the court shall dismiss the action with costs against the plaintiff except in appeals taken pursuant to section 42-16206.

3. Insufficient, the judgment, consistent with subsection A of this section, shall be for the state or county, whichever is appropriate, and against the taxpayer for the costs of the appeal and any taxes due on the property in excess of the amount originally levied and assessed. The judgment is a lien on the appellant's real and personal property as though the assessment had originally been in the amount of the judgment.

C. If the court finds that the classification is in error, the court shall determine the correct classification. The taxes due on the property shall be determined using the classification determined by the court regardless of whether the department filed an appeal pursuant to section 42-16206.
A.R.S. § 42-13355 — Arizona Code / Title 42 / Chapter 13 / Article 8 / Section 13355
42-13355 Assessing clean rooms as personal property; definition
Status: in_force

42-13355. Assessing clean rooms as personal property; definition

A. Clean rooms that are used for manufacturing, processing, fabrication or research and development of semiconductor products shall be valued and assessed as tangible personal property.

B. For the purposes of this section:

1. "Clean room" means all property that comprises or creates an environment where humidity, temperature, particulate matter and contamination are precisely controlled within specified parameters, without regard to whether the property is actually contained within that environment or whether any of the property is affixed to or incorporated into real property.

2. Clean rooms include the integrated systems, fixtures, piping, movable partitions, lighting and all property that is necessary or adapted to reduce contamination or to control airflow, temperature, humidity, chemical purity, or other environmental conditions or manufacturing tolerances, as well as the productions machinery and equipment operating in conjunction with the clean room environment.

3. Clean rooms do not include the building or a permanent, nonremovable component of the building that houses the clean room environment.
A.R.S. § 42-1254 — Arizona Code / Title 42 / Chapter 1 / Article 6 / Section 1254
42-1254 Appeal to tax court
Status: in_force

42-1254. Appeal to tax court

A. The department or a taxpayer aggrieved by a decision of the state board of tax appeals may bring an action in tax court.

B. If the department is aggrieved by a decision of the board and the amount in dispute is less than five thousand dollars, the department may not bring an action in tax court unless the department determines that the decision of the board involves an issue of substantial significance to the state. A taxpayer aggrieved by a determination of the department that an issue is of substantial significance to the state may file a motion with the tax court to dismiss the action brought by the department on the grounds that the determination constitutes an abuse of discretion.

C. Except in the case of individual income tax cases in which the amount in dispute is less than five thousand dollars, a person who is aggrieved by a final decision or order of the department under section 42-1251 or article 3 of this chapter, in lieu of appealing to the state board of tax appeals under section 42-1253, may bring an action in tax court by filing a notice of appeal in writing within thirty days after the decision or order from which the appeal is taken has become final.  In addition, as provided by section 42-1251, subsections B and C, a person may bypass all or part of the administrative appeals process in certain tax disputes by bringing an action in tax court by filing a notice of appeal in writing within the time prescribed by section 42-1251, subsection B.

D. Any appeal that is taken to tax court pursuant to this section is subject to the following provisions:

1. An injunction, writ of mandamus or other legal or equitable process may not issue in an action in any court in this state against an officer of this state to prevent or enjoin the collection of any tax, penalty or interest.

2. The action shall not begin more than thirty days after the order or decision of the board or department becomes final. Failure to bring the action within thirty days after the order or decision of the board or department becomes final constitutes a waiver of the protest and a waiver of all claims against this state arising from or based on the illegality in the tax, penalties and interest at issue, except that within the time limits set forth in section 42-1106, a taxpayer who fails to bring an action within thirty days may pay the tax under protest stating the grounds of objection to the legality of the tax and then file a claim for refund of the taxes paid. The refund claim shall then be governed by section 42-1119 and this section.

3. The tax court shall hear and determine the appeal as a trial de novo.

4. Either party to such an action may appeal to the court of appeals or supreme court as provided by law.

5. If a final judgment is rendered in favor of the taxpayer in the action, the amount or such portion of the judgment as may be necessary shall first be credited to any taxes, penalties and interest due from the plaintiff taxpayer, and the amount of the balance remaining due the taxpayer shall be certified by the department of revenue to the department of administration, with a certified copy of the final judgment and a claim for refund authenticated by the department of revenue. On receipt, the department of administration shall draw a warrant payable to the taxpayer in an amount equal to the amount of the tax found by the judgment to be illegal, minus the amount of any taxes, penalties and interest due from the taxpayer. The department of administration shall draw a separate warrant payable to the taxpayer in an amount equal to the interest and other costs recovered against the department of revenue by the judgment, which shall be paid from the appropriate tax account.
A.R.S. § 42-14053 — Arizona Code / Title 42 / Chapter 14 / Article 2 / Section 14053
42-14053 Determining and reporting valuation of producing mines and mining property
Status: in_force

42-14053. Determining and reporting valuation of producing mines and mining property

A. On or before August 31 of each year, the department shall find the full cash value of:

1. Patented and unpatented producing mines.

2. Personal property used on producing mines.

3. Improvements to producing mines.

4. Mills and smelters that are operated in conjunction with producing mines.

B. On or before November 30 of each year, the department shall transmit the valuations of these properties in each taxing district to the respective county assessors.

C. The valuations required by this section are the values determined as of January 1 of the valuation year.
A.R.S. § 42-2066 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2066
42-2066 Statute of limitations on tax debts
Status: in_force

42-2066. Statute of limitations on tax debts

A taxpayer's obligations for any tax, interest or penalty required to be collected by the department for any tax period are extinguished, if not previously satisfied, ten years after the amount of tax determined to be due becomes final unless one of the following circumstances applies:

1. The department has commenced a suit to collect the debt pursuant to section 42-1114.

2. The taxpayer has agreed in writing to extend this time period before the time period expires.

3. Enforced collection has been stayed by the operation of federal or state law during the period. The period of limitations prescribed by this section is extended by the period of time that the department was stayed from engaging in enforced collections.
A.R.S. § 42-17401 — Arizona Code / Title 42 / Chapter 17 / Article 8 / Section 17401
42-17401 Elderly assistance fund; primary school district tax reduction; definition
Status: in_force

42-17401. Elderly assistance fund; primary school district tax reduction; definition

A. An elderly assistance fund shall be established by the board of supervisors in a county with a population of more than two million persons to be administered by the county treasurer.  The fund shall be used to reduce the primary school district taxes pursuant to subsection C of this section.

B. The board of supervisors shall spend any unspent monies that remain in the elderly assistance fund from and after December 31, 2015 solely on the elderly assistance program. Any subsequent appropriations made to the elderly assistance fund shall also be spent solely on the elderly assistance program.

C. On June 30 of each year, the county treasurer shall determine the total amount of monies in the elderly assistance fund and the total number of qualified individuals who live in the county.  The county treasurer shall use the monies in the fund to proportionately reduce the primary school district taxes that are levied against the property of all qualified individuals in the county for the following tax year.

D. The county treasurer shall invest monies in the fund.  Interest earned on fund monies shall be deposited in the taxpayer's information fund established by section 11-495.

E. For the purposes of this section, "qualified individual" means an individual who lives in an organized school district and who is approved for the property valuation protection option pursuant to article IX, section 18, subsection (7), Constitution of Arizona.
A.R.S. § 42-14157 — Arizona Code / Title 42 / Chapter 14 / Article 4 / Section 14157
42-14157 Allocation of electric transmission, distribution and generation values among taxing jurisdictions; definition
Status: in_force

42-14157. Allocation of electric transmission, distribution and generation values among taxing jurisdictions; definition

A. The value of property computed under sections 42-14154, 42-14156 and 42-14159 shall be allocated among the various taxing jurisdictions as follows:

1. Combine the values for plant in service and materials and supplies pursuant to section 42-14154 or 42-14159 with the value of electric generation facilities pursuant to section 42-14156 for the owner or the combined group.

2. Combine the original plant in service costs and materials and supplies pursuant to section 42-14154 or 42-14159 with the original cost of generation plant facilities pursuant to section 42-14156 for the owner or the combined group.

3. Allocate the value determined under paragraph 1 of this subsection among the respective taxing jurisdictions in proportion to the original cost determined under paragraph 2 of this subsection.

B. The unit value of environmental protection facilities under section 42-14154 or 42-14159 shall be allocated among the various taxing jurisdictions in proportion to the original cost of the environmental protection facilities of the owner or the combined group in the respective taxing jurisdiction.

C. Construction work in progress determined under sections 42-14154, 42-14156 and 42-14159 shall be allocated among the various taxing jurisdictions on a situs basis separately from the unit value of environmental protection facilities.

D. The unit value of renewable energy equipment determined under section 42-14155 shall be allocated among the various taxing jurisdictions in proportion to the original cost of the renewable energy equipment of the owner or the combined group in the respective taxing jurisdiction.

E. For the purposes of this section, "combined group" means all corporations and other entities that are at least eighty per cent owned or controlled by a common parent entity, determined by reference to voting shares.
A.R.S. § 42-12010 — Arizona Code / Title 42 / Chapter 12 / Article 1 / Section 12010
42-12010 Purpose of classification of property
Status: in_force

42-12010. Purpose of classification of property

A. The classes of property are established by this article for the common treatment of the property in each class for purposes of the assignment of a common assessment percentage under chapter 15, article 1 of this title and other purposes prescribed by statute, but the statutory classes under this article are not considered to constitute classes of property for purposes of article IX, section 1, Constitution of Arizona.

B. The valuation of properties in individual subclasses established by this article shall be determined in the distinct manner prescribed by law for each subclass in compliance with article IX, section 1, Constitution of Arizona.
A.R.S. § 42-18155 — Arizona Code / Title 42 / Chapter 18 / Article 4 / Section 18155
42-18155 Payment of redemption money to holder of certificate of purchase or registered certificate
Status: in_force

42-18155. Payment of redemption money to holder of certificate of purchase or registered certificate

A. On demand of any person who is entitled to redemption money held by the county treasurer, the treasurer shall pay the money to that person on the surrender of the certificate of purchase or on the redemption of the registered certificate for the redeemed tax lien.

B. If only a portion of the tax lien on the property described in the certificate of purchase or the registered certificate has been redeemed, the treasurer shall endorse on the certificate or annotate the record of the registered certificate the portion redeemed and the amount of money paid to the person holding the certificate and shall take a receipt for the money paid.
A.R.S. § 42-1109 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1109
42-1109 Failure to file return; false or fraudulent return; limited scope review; mandamus; order to produce documents; electronic portal
Status: in_force

42-1109. Failure to file return; false or fraudulent return; limited scope review; mandamus; order to produce documents; electronic portal

A. If a person who is required to file a report or return fails to do so within fifteen days after written demand by the department, the department shall proceed to obtain facts and information on which to base the tax, and for that purpose the department or its agent may examine the books, records and papers of the person and may take evidence on oath of any person who the department believes has facts or information pertinent to the inquiry. The director or the director's agent may administer the oath. As soon as the department procures the information, it shall hold a hearing to determine the amount of tax payable by the person. The department shall give at least ten days' notice in writing of the time and place of holding the hearing, which shall be mailed to the person's last known address or served personally. The levy of the tax is final after the hearing as to any person who fails or refuses to file a return.

B. If a taxpayer files a false or fraudulent return or fails or neglects to file a return within fifteen calendar days after written or electronic demand by the department, the department, at any time, may require a return or a supplementary return or may estimate the taxable income from any available information and may propose to assess the amount of tax, interest and penalties due. The provisions of this article relating to delinquent taxes apply to the tax, interest and penalties computed pursuant to this subsection. A proceeding in court to collect the tax, interest and penalties provided for in this subsection may be begun without assessment at any time.  Notwithstanding section 42-1004, subsection C, the assessment of tax, interest or penalties under this subsection does not preclude subsequent deficiency assessments under section 42-1108.

C. The department may conduct a limited scope review of a filed individual income tax return if it discovers a discrepancy between amounts reported on the return and the information the department receives pursuant to section 43-412.  In a notice to the taxpayer, the department may request records from a taxpayer in support of the taxpayer's filed returns and propose a tentative amount of tax, interest and penalties due on the basis of this additional information.  The taxpayer shall have at least thirty calendar days to respond to this notice on a form prescribed by the department. A limited scope review under this subsection may be conducted only once per taxable year per taxpayer and shall not be considered an initial audit contact for purposes of section 42-2075 if any of the following applies:

1. The taxpayer provides documentation or an explanation that resolves the discrepancy between the originally filed return and the information received pursuant to section 43-412.

2. The taxpayer files an amended return that corrects the discrepancy.

3. The department, at the taxpayer's request, adjusts the return filed by the taxpayer based on an agreed amount.  An adjustment made at the taxpayer's request under this paragraph is not considered an audit and does not preclude a future audit of the same year under section 42-1108.

4. The department notifies the taxpayer requesting the taxpayer to resolve the discrepancy by filing an amended return in order to avoid a possible future audit and reduce possible future penalties and interest. Any future audit shall be conducted pursuant to section 42-1108.

D. If an assessment is proposed under this section, the taxpayer has the right to protest the assessment, to have an oral hearing on the protest if requested and to appeal to the state board of tax appeals from the department's action on the protest. The taxpayer shall proceed under this section in the manner and within the time prescribed by article 6 of this chapter.

E. In addition to the remedies provided by subsection B of this section, if a taxpayer fails to file a return within sixty days after the time prescribed by this chapter, the department may petition the tax court to issue a writ of mandamus requiring the person to file a return. The petition shall be returnable not later than ten days after filing the petition. The petition shall be heard and determined on the return day or on such day thereafter as the court shall fix, having regard to the speediest possible determination of the case, consistent with the rights of the parties. The court shall provide at least ten days' written notice of the hearing to the taxpayer, which shall be mailed to the taxpayer's last known address or served on the taxpayer personally. The judgment shall include costs in favor of the prevailing party.  Proceedings on such suits shall comply with the rules of procedure for special actions.

F. If a person wilfully refuses to make available any books, papers or records for examination by the department, or wilfully refuses to attend and testify, in connection with any proceedings instituted under subsection A of this section, the department may apply to the tax court for an order directing that person to produce the books, papers or records or to compel the person's attendance and testimony. If the books, papers or records required by the department are in the custody of a corporation, the order of the court may be directed to any principal officer of the corporation or its registered statutory agent. The failure to obey such an order of the court may be punished by the court as contempt.

G. The department may issue notice of its determination of deficiency under subsection B of this section by using an electronic portal in lieu of mail if all of the following requirements are met:

1. The taxpayer agrees in writing to allow the department to use the electronic portal to issue notice of the department's determination of deficiency for specified tax periods.  The agreement shall include an email address that the department may use to notify the taxpayer as required by paragraph 2 of this subsection.  A taxpayer that provides an email address is certifying that the taxpayer regularly monitors that email address. If the taxpayer's email address changes, the taxpayer shall notify the department of a new email address.

2. The department notifies the taxpayer via the email address when the notice of the department's determination of deficiency is posted to the electronic portal.

3. The email notification under paragraph 2 of this subsection is sent on the same day the notice of the department's determination of deficiency is posted to the electronic portal.

4. The date of receipt for a notice of the department's determination of deficiency is the later of the date the notice is posted to the electronic portal or the date the taxpayer receives the email notification required under paragraph 3 of this subsection. An email notification is deemed received by the taxpayer on the day it is sent by the department.
A.R.S. § 42-1301 — Arizona Code / Title 42 / Chapter 1 / Article 7 / Section 1301
42-1301 Designating military reuse zone; term; renewal
Status: in_force

42-1301. Designating military reuse zone; term; renewal

A. After executing a lease with a term of fifteen years or longer for the use or occupancy of real property or improvements that are located on a closed military facility with a runway that is at least eight thousand feet long at closing or after title to any part of a closed military facility with a runway that is at least eight thousand feet long at closing is transferred to this state or to another public or private entity, the governor, after consulting with the director, may designate the property as a military reuse zone.  Only properties that were used for operational and training purposes of the active uniformed services of the United States qualify for consideration as a military reuse zone.

B. The governor shall set a termination date for the military reuse zone that is not more than ten years after the date the zone is designated. During the last year before termination the governor may renew the military reuse zone for one term of ten years.  Thereafter, the legislature and the governor by joint resolution may renew the military reuse zone for additional ten-year terms.
A.R.S. § 42-3501 — Arizona Code / Title 42 / Chapter 3 / Article 12 / Section 3501
42-3501 Return and payment by distributors of tobacco products other than cigarettes
Status: in_force

42-3501. Return and payment by distributors of tobacco products other than cigarettes

A. Except for tobacco products described in section 42-3402, every distributor of tobacco products other than cigarettes shall pay the tax imposed by this chapter on all those products received within the state and shall add the amount of the tax to the sales price.

B. The distributor shall pay the tax to the department monthly on or before the twentieth day of the month next succeeding the month in which the tax accrues.

C. On or before that date the distributor shall prepare a sworn return for the month in which the tax accrues in the form prescribed by the department, showing:

1. The amount of tobacco products other than cigarettes received in this state during the month in which the tax accrues.

2. The amount of tax for the period covered by the return.

3. Any other information the department deems necessary for the proper administration of this chapter, including information required for roll-your-own tobacco provided under section 42-3462.

D. The distributor shall deliver the return, together with a remittance of the amount of the tax due, to the department.

E. A taxpayer who fails to pay the tax within ten days of the date on which the payment becomes 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.
A.R.S. § 42-3351 — Arizona Code / Title 42 / Chapter 3 / Article 8 / Section 3351
42-3351 Bonds required of liquor wholesalers; exemption
Status: in_force

42-3351. Bonds required of liquor wholesalers; exemption

A. Every wholesaler of spirituous, vinous and malt liquors shall file with the department, in such form as the department prescribes, a bond or bonds, duly executed by the wholesaler as principal, and with a corporation duly authorized to execute and write bonds within the state as surety, payable to the state, and conditioned upon the payment of all taxes, penalties and other obligations of the wholesaler arising under this chapter.

B. The department shall fix the total amount of the bond or bonds required of the wholesaler and may increase or reduce the amount at any time. In fixing the total amount, the department shall require a bond or bonds equivalent in total amount to twice the wholesaler's estimated monthly tax, ascertained in such manner as the department deems proper. The total amount of the bond or bonds required of any wholesaler shall not be less than two thousand dollars.

C. A wholesaler is exempt from the requirements of this section if the wholesaler has made timely payment of the taxes imposed by this chapter for the twenty-four consecutive months immediately preceding the current month.
A.R.S. § 42-3372 — Arizona Code / Title 42 / Chapter 3 / Article 9 / Section 3372
42-3372 Disposition of monies
Status: in_force

42-3372. Disposition of monies

(Caution:  1998 Prop. 105 applies)

Notwithstanding section 42-3102, the department shall deposit, pursuant to sections 35-146 and 35-147, monies levied and collected pursuant to this article in the early childhood development and education fund established by section 8-1181 for use as prescribed by title 8, chapter 13.
A.R.S. § 42-16105 — Arizona Code / Title 42 / Chapter 16 / Article 3 / Section 16105
42-16105 Appeal of valuation or legal classification from county assessor to county board
Status: in_force

42-16105. Appeal of valuation or legal classification from county assessor to county board

A. If the county assessor denies all or part of a petition under section 42-16055, and if a county board of equalization has been established in the county, the petitioner may appeal the assessor's decision to the county board by filing with the clerk of the county board, within twenty-five days after the date that the assessor's decision was mailed to the petitioner, a copy of the written basis of the decision according to the instructions on the petition.

B. The department may contest any proposed valuation or classification or any proposed change in valuation or classification before the county board. If, in the director's opinion, a decision of an assessor is erroneous, the director may appeal the assessor's decision to the county board within twenty-five days after the assessor's decision was mailed to the taxpayer and the department. In such an action the taxpayer shall raise any defense the taxpayer has to liability for the tax and any additional tax sought to be imposed. If issues other than valuation or classification are raised by either party, the action shall be tried as if it were an action pursuant to section 42-11005 or 42-11052.

C. A property owner that receives a notice of valuation under section 42-15105 may appeal the valuation or legal classification to the county board as provided in subsection A of this section within twenty-five days after the date of the assessor's notice.
A.R.S. § 42-17451 — Arizona Code / Title 42 / Chapter 17 / Article 9 / Section 17451
42-17451 Refund; failure to abate public nuisance; applicability; definitions
Status: in_force

42-17451. Refund; failure to abate public nuisance; applicability; definitions

(Caution:  1998 Prop. 105 applies; Rpld. 1/1/36)

A. Notwithstanding any other law, subject to subsection C, paragraph 3 and subsection I of this section, beginning in tax year 2025, a property owner may apply for a refund in an amount determined pursuant to subsection B of this section if either of the following occurs:

1. The city, town or county in which the real property is located adopts and follows a policy, pattern or practice of declining to enforce existing laws, ordinances or other legislation prohibiting illegal camping, obstructing public thoroughfares, loitering, panhandling, public urination or defecation, public consumption of alcoholic beverages or possession or use of illegal substances and the property owner incurs documented expenses to mitigate the effects of the policy, pattern or practice or the public nuisance on the property owner's real property.

2. The city, town or county in which the real property is located maintains a public nuisance and the property owner incurs documented expenses to mitigate the effects of the policy, pattern or practice or the public nuisance on the property owner's real property.

B. The amount of the refund is equal to the documented expenses incurred by the property owner that were reasonably necessary to mitigate the effects of the policy, pattern or practice or the public nuisance on the property owner's real property.

C. The refund allowed under this section:

1. Shall be paid in the same manner prescribed by section 42-1118.

2. Notwithstanding section 12-1134, subsection H, is in lieu of any claim for monetary damages or any rights under title 12, chapter 8, article 2.1.

3. May not exceed the amount the property owner paid for the prior tax year in primary property taxes for the tax year to the affected city, town or county. If the total amount of the refund determined pursuant to subsection B of this section is more than the amount the property owner paid for the prior tax year in primary property taxes to the affected city, town or county for the tax year and the refund is accepted, the department shall issue the refund for that tax year in an amount equal to the amount the property owner paid for the prior tax year in primary property tax to the affected city, town or county. The property owner must apply to the department for the remaining portion of the refund the following and successive tax years, as needed.

D. Within fifteen days after the department receives an application from a property owner for a refund under this section, the department shall notify the affected city, town or county. Within thirty days after receiving the notice, the affected city, town or county shall accept or reject the refund and notify the department of that determination. If the affected city, town or county:

1. Accepts the refund, the department shall pay the refund to the property owner pursuant to subsection C of this section.

2. Rejects the refund, the department may not pay the refund to the property owner. The property owner may file a cause of action in the superior court of the county in which the real property is located to challenge the rejection of the refund. The questions of whether the property owner is entitled to the refund and whether the amount of the refund is reasonable are judicial questions. In a cause of action filed pursuant to this paragraph:

(a) The city, town or county shall bear the burden of demonstrating that its actions are lawful or that the amount of the refund is unreasonable.

(b) The property owner is not liable to the city, town or county for attorney fees or costs.

(c) A prevailing property owner shall be awarded reasonable attorney fees and costs.

3. Does not respond to the department within the thirty-day period, the refund is deemed accepted and the department shall pay the refund to the property owner.

E. On notice from the department, the state treasurer shall withhold from the distribution of monies pursuant to section 42-5029, subsection D to the affected city, town or county the respective aggregate amount of refunds issued under this section. The state treasurer shall continue to withhold monies pursuant to this subsection until the entire amount provided by the department has been withheld. The state treasurer shall credit any monies withheld pursuant to this subsection to the department as reimbursement for issuing the refunds.  The state treasurer may not withhold any payments for debt service on bonds or other long-term obligations of the affected city, town or county that were issued or incurred before the refund was issued.

F. The property owner may not be required to submit any claim as a prerequisite to demanding or receiving just compensation in the form of a refund pursuant to this section.

G. A property owner may apply for a refund under this section once per tax year.

H. If the policy, pattern, practice or public nuisance remains in place after the property owner applies for a refund pursuant to this section, the property owner is entitled to another refund under this section in a subsequent tax year, unless the affected city, town or county and the property owner enter into a knowing and voluntary settlement, or the affected city, town or county ends the policy, pattern or practice or abates the public nuisance.

I. A property owner whose real property is located in the corporate boundaries of a city or town is eligible to apply for a refund only from that city or town. A property owner whose real property is located in an unincorporated area of a county is eligible to apply for a refund only from that county.

J. Except for any rights under title 12, chapter 8, article 2.1 that are fully waived by receiving a refund under this section pursuant to subsection C, paragraph 2 of this section, the remedy established by this section is in addition to any other remedy that is provided by the laws and constitution of this state or the United States and is not intended to modify or replace any other remedy.

K. The department shall prescribe the procedure and form required to administer this section.

L. This section does not apply to:

1. Decisions by city, town or county authorities to exercise prosecutorial discretion not to prosecute alleged offenders if the decisions are made on a case-by-case basis and the justifications for each decision are published on a monthly basis by the city, town or county.

2. Acts of executive clemency.

3. Acts or omissions taken pursuant to section 26-303.

4. Acts or omissions mandated by federal law.

M. For the purposes of this section:

1. "Affected city, town or county" means a city, town or county in which a property owner is applying for a refund provided under this section.

2. "Property owner" means the holder of fee title to the real property.
A.R.S. § 42-3006 — Arizona Code / Title 42 / Chapter 3 / Article 1 / Section 3006
42-3006 Tax stamps; general requirements
Status: in_force

42-3006. Tax stamps; general requirements

A. The department shall prepare and have on hand official adhesive stamps according to the classifications in section 42-3052 of luxuries upon which a tax is imposed by this chapter and for which the department either collects payment or prepayment of the tax through the purchase of such stamps or requires the affixation of stamps to indicate the tax-exempt nature of the luxuries.

B. The stamps shall have both of the following characteristics:

1. Be of a character so that they cannot be removed when once attached to an article without destroying them.

2. Be printed in the form and manner prescribed by the director.

C. Any tax stamp required under this chapter must be securely affixed to some visible part of the package or container and must remain firmly adhered to the package or container during possession by the consumer, except as otherwise provided.

D. Cigarette stamps shall also meet the requirements of article 11 of this chapter.
A.R.S. § 42-3303 — Arizona Code / Title 42 / Chapter 3 / Article 7 / Section 3303
42-3303 Tax on the consumer; precollection and remission by distributor
Status: in_force

42-3303. Tax on the consumer; precollection and remission by distributor

A. The taxes levied pursuant to this article are conclusively presumed to be direct taxes on the consumer but shall be precollected and remitted to the department by the distributor for purposes of convenience and facility only. The taxes that the distributor precollects and pays to the department:

1. Are considered to be an advance payment.

2. Shall be added to the price of the cigarettes, cigars, smoking tobacco, plug tobacco, snuff and other forms of tobacco.

3. Shall be recovered from the consumer.

B. For the purpose of the precollection and remittance of the tax imposed by this article, the distributor shall obtain and affix revenue stamps pursuant to article 11 of this chapter.
A.R.S. § 42-16163 — Arizona Code / Title 42 / Chapter 16 / Article 4 / Section 16163
42-16163 Hearing notices
Status: in_force

42-16163. Hearing notices

Unless otherwise provided by law, all notices of hearings on appeals before the state board shall be mailed at least fourteen days before the hearing.
A.R.S. § 42-2069 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2069
42-2069 Taxpayer communications with practitioners; confidentiality; definitions
Status: in_force

42-2069. Taxpayer communications with practitioners; confidentiality; definitions

A. With respect to tax advice, the same common law protections of confidentiality that apply to a communication between a taxpayer and an attorney also apply to a communication between a taxpayer and a federally authorized tax practitioner to the extent that the communication would be considered to be a privileged communication if it were between a taxpayer and an attorney.

B. Subsection A of this section may only be asserted in:

1. A noncriminal tax matter before the department.

2. A proceeding before the state board of tax appeals.

3. A noncriminal tax proceeding in court.

C. The department may deny an individual coverage under this privilege if it determines that a practitioner has engaged in activities or practices involving matters before the department that, if they involved matters before the United States internal revenue service, would result in the practitioner losing the authorization to practice before the internal revenue service. A practitioner aggrieved by a determination to deny the privilege may appeal that determination pursuant to section 42-1253 or 42-1254.

D. For the purposes of this section:

1. "Federally authorized tax practitioner" means an individual who is authorized under federal law to practice before the United States internal revenue service if the practice is subject to federal regulation under 31 United States Code section 330. Federally authorized tax practitioner includes any person who is engaged in practice with one or more federally authorized tax practitioners and who is subject to the same standards of practice and ethics requirements as a federally authorized tax practitioner.

2. "Tax advice" means advice given by an individual with respect to a matter that is within the scope of the individual's authority to practice as a federally authorized tax practitioner.
A.R.S. § 42-18203 — Arizona Code / Title 42 / Chapter 18 / Article 5 / Section 18203
42-18203 Application of law and rules of procedure
Status: in_force

42-18203. Application of law and rules of procedure

A. The provisions of law relating to civil actions and rules of civil procedure control the proceedings in an action to foreclose the right to redeem, including the right of appeal.

B. In an action to foreclose the right to redeem with respect to tax liens sold on real property of minors and legally incapacitated persons, the provisions of law relating to the prosecution of civil actions against persons under those disabilities apply.
A.R.S. § 42-1107 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1107
42-1107 Extension of time for filing returns
Status: in_force

42-1107. Extension of time for filing returns

A. The department, pursuant to administrative rule, may grant an automatic extension of time for filing an income tax return under title 43 if at least ninety percent of the tax liability disclosed by the taxpayer's return for the reporting period is paid and if the request for extension is received or mailed on or before the date the return is otherwise due to be filed.  If at least ninety percent of the tax liability disclosed by the taxpayer's return for the reporting period has not been paid at the time of filing for the extension, the taxpayer is subject to a penalty of one-half of one percent of the tax not paid for each thirty-day period or fraction of a thirty-day period elapsing between the date the return is otherwise due to be filed and the date the tax is paid, not to exceed a total of twenty-five percent. If a taxpayer is subject to both of the penalties prescribed under this section and section 42-1125, the maximum combined penalty that may be imposed on the taxpayer under both sections shall not exceed twenty-five percent of the tax found to be remaining due. A taxpayer is not subject to the penalties prescribed under section 42-1125, subsection D if the taxpayer is subject to the penalties prescribed under this section. If in its judgment good cause exists, the department may grant a further extension or extensions of time for filing the return pursuant to administrative rule. Except as provided in subsection D of this section, an extension or extensions granted under this subsection may not aggregate more than six months after the due date provided for the filing of returns.

B. If the taxpayer has been granted an extension or extensions of time within which to file a federal income tax return for any taxable year, the taxpayer is deemed to have been granted the same extension of time for filing the Arizona income tax return if the taxpayer has paid at least ninety percent of the tax liability disclosed by the taxpayer's return for the reporting period. If at the time the taxpayer has been granted a federal extension or extensions the taxpayer is required to pay at least ninety percent under this section, the payment shall be in a manner prescribed by the department.

C. The department, for good cause, may extend the time for making any other return required by chapter 5, articles 1, 4 and 5 of this title, and may grant such reasonable additional time in which to make the return as it deems proper, but the time for filing the return shall not be extended beyond the first day of the third month next succeeding the regular due date of the return.

D. The due date for an income tax return for a taxpayer filing a corporate or exempt organization return that has been granted an extension or extensions pursuant to subsection A or B of this section is seven months after the initial due date provided for filing returns. This subsection does not include small business corporation returns filed under section 43-1126.
A.R.S. § 42-19008 — Arizona Code / Title 42 / Chapter 19 / Article 1 / Section 19008
42-19008 Violation; classification
Status: in_force

42-19008. Violation; classification

A person who violates any provision of this article is guilty of a class 3 misdemeanor.
A.R.S. § 42-3459 — Arizona Code / Title 42 / Chapter 3 / Article 11 / Section 3459
42-3459 Secured cigarette stamp purchases on credit; cancellation of credit privileges; collection action; bonding requirement; waiver
Status: in_force

42-3459. Secured cigarette stamp purchases on credit; cancellation of credit privileges; collection action; bonding requirement; waiver

A. Subject to subsections B and C of this section, and except as provided in subsection D of this section, a licensed distributor who furnishes a bond of a surety company qualified to do business in this state, in an amount equal to two times the amount of the distributor's current monthly stamp purchases and conditioned upon the payment within the time prescribed, may make payment for the official stamp on or before the twentieth day of the month next following the purchase of an official stamp. All other distributors shall pay for each stamp at the time of purchase.

B. Upon a finding that the amount of stamp purchases, or meter machine usage, exceeds seventy-five percent of the amount of the bond, the department may cancel the credit privileges provided to qualified distributors pursuant to subsection A of this section.

C. If the indebtedness of a distributor whose credit privileges have been canceled pursuant to this section remains unpaid for thirty days after cancellation, the director shall request the attorney general to take suitable action on behalf of the department to collect either on the indebtedness or the surety bond.

D. The distributor may request that the department waive the bonding requirement in subsection A of this section if the distributor maintains a timely, accurate and complete filing and payment record for a period of two years and otherwise complies with all requirements of a licensed distributor pursuant to this chapter and title 44, chapter 27. The waiver of the bonding requirement applies only to the distributor's purchases of tax stamps with which the distributor prepays the Indian reservation tobacco tax, pursuant to section 42-3303.
A.R.S. § 42-6208 — Arizona Code / Title 42 / Chapter 6 / Article 5 / Section 6208
42-6208 Exempt government property improvements
Status: in_force

42-6208. Exempt government property improvements

The tax under this article, section 42-6206, subsection B and section 42-6209, subsection C do not apply with respect to:

1. Property that is used for a governmental activity.

2. Property that is used for public housing.

3. Easements and rights-of-way of railroads and gas, electric, water, pipeline and telephone utilities.

4. Interests in all or any part of a facility that is owned of record by a government lessor and used primarily for athletic, recreational, entertainment, artistic, cultural or convention activities if the interest is used for those activities or activities directly related and incidental to these uses including concession stands.

5. Property that is used for or in connection with aviation, including hangars, tie-downs, aircraft maintenance, sale of aviation related items, charter and rental activities, commercial aircraft terminal franchises, rental car operations, parking facilities and restaurants, stores and other services that are located in a terminal.

6. The use by a commercial airline of the runways and terminal facilities of state, city, town or county airports and public airports operating pursuant to sections 28-8423, 28-8424 and 28-8425.

7. Leases of property or interests in a transportation facility that is constructed or operated pursuant to title 28, chapter 22.

8. Interests in lands held in trust by this state pursuant to title 37, chapter 2, article 1.

9. Interests in property held in trust for an Indian or an Indian tribe by the United States government.

10. Interests in property that is defined as "contractor-acquired property" or "government-furnished property" in the federal acquisition regulations, 48 Code of Federal Regulations section 45.101, and that is owned by the government and used to perform a government contract.

11. Property of a corporation that is organized by or at the direction of a county, city or town to develop, construct, improve, repair, replace or own any property, improvement, building or other facility to be used for public purposes that the county, city or town pledges to lease or lease-purchase with county or municipal special or general revenues.

12. Interests in property used by a chamber of commerce recognized under section 501(c)(6) of the United States internal revenue code if the property is used predominately for those federal tax exempt purposes.

13. Interests in property used by organizations that are exempt from taxation under section 501(c)(3) of the internal revenue code.

14. Interests in parking garages or decks if the parking garages or decks are owned and operated by a government lessor or operated on behalf of a government lessor, by an entity other than the prime lessee, pursuant to a management agreement with the government lessor.

15. Residential rentals if the prime lessee is the occupant.
A.R.S. § 42-1112 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1112
42-1112 Enforcement powers and duties
Status: in_force

42-1112. Enforcement powers and duties

In performing its duties pursuant to this article the department may:

1. Examine any books, papers, records or memoranda bearing on the matters required to be included in the return of any taxpayer.

2. Require from a taxpayer's consolidated return, filed under sections 1501 and 1502 of the United States internal revenue code copies of:

(a) The first page.

(b) Schedule J.

(c) The company balance sheets.

(d) The income statement spreadsheets.

3. Require the attendance of the taxpayer or of any other person having knowledge in the premises and for such purposes may:

(a) Take testimony.

(b) Require material proof for its information.

(c) Administer oaths.

4. Issue subpoenas and subpoenas duces tecum, signed by the director or his designee, to be served on any person for the purposes of this section.
A.R.S. § 42-13403 — Arizona Code / Title 42 / Chapter 13 / Article 9 / Section 13403
42-13403 Computing valuation
Status: in_force

42-13403. Computing valuation

A. Subject to section 42-13404, values for common areas shall be made on the assumption that no other property use is possible.

B. Land, buildings and improvements used for common areas shall be valued at five hundred dollars per parcel. The county assessor may divide the assessment amount per parcel to depict an assessment for land and an assessment for buildings and improvements provided that the total assessment for the parcel does not exceed five hundred dollars.
A.R.S. § 42-1102 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1102
42-1102 Taxpayer bonds; definition
Status: in_force

42-1102. Taxpayer bonds; definition

A. If the department deems it necessary to protect the revenues to be collected under this title and title 43, it may require a person liable for the tax to file a bond to secure the payment of the tax, penalty or interest, which may become due from that person. The bond shall be:

1. Issued by a surety company authorized to transact business in this state and approved by the director of the department of insurance and financial institutions of this state as to solvency and responsibility or composed of securities or cash that are deposited with, and kept in the custody of, the department.

2. Except as otherwise provided in this section, in the amount that the department prescribes by administrative rule to secure the payment of any tax, penalty or interest, which may become due from the person.

B. For the purposes of licenses to sell tobacco products issued under section 42-3401, the amount of the bond required under this section is the greater of $500 or four times the average monthly tax liability. For the purposes of determining the bond amount, the average monthly tax liability is equal to the average monthly tax due from the applicant for the preceding six consecutive months. If an applicant does not have a six-month payment history, the bond amount is a minimum of $500.  If an applicant provides a surety bond and the bond lapses, the applicant shall deposit with the department cash or other security in an amount equal to the lapsed surety bond within five business days after the applicant's receipt of written notification by the department. The bond amount may be increased or decreased as necessary based on any reason listed in subsection D of this section or a change in the applicant's previous filing period, filing compliance record or payment history. If the bond amount is increased above the amount computed under this subsection, the applicant may request a hearing pursuant to subsection C of this section to show why the order increasing the bond amount is in error.

C. If the department determines that a person is to file a bond it shall notify the person to that effect, specifying the amount of the bond required. The person shall file the bond within five days after the giving of notice unless within that time the person requests in writing a hearing before the department at which time the department shall determine the necessity, propriety and amount of the bond. The determination is final unless within fifteen days after the giving of notice of the determination the person appeals the determination to the state board of tax appeals. The board shall decide on the appeal within fifteen days of its receipt. The bond, at any time without notice, may be applied to any tax, penalties or interest due, and for that purpose the securities may be sold at public or private sale without notice to the depositor.

D. For purposes of this section a bond may be required if:

1. After investigation of financial status, the department determines that an applicant for a new license would be unable to timely remit amounts due.

2. An applicant for a new license held a license for a prior business, and the remittance record for the prior business falls within one of the conditions in paragraph 5 of this subsection.

3. The department experienced collection problems while the applicant was engaged in business under a prior license.

4. The applicant is substantially similar to a person who would have been required to post a bond under paragraph 5 of this subsection or the person had a previous license that was revoked. An applicant is substantially similar if it is owned or controlled by persons who owned or controlled a previous licensee.

5. An existing licensee has had two or more delinquencies in remitting tax during the preceding twenty-four months if filing on a quarterly or less frequent basis or four or more delinquencies during the preceding twenty-four months if filing on a monthly or more frequent basis.

E. If a licensee who is required to post a bond or security maintains a good filing and payment record for a period of two years, the licensee may request that the department waive the continued bond or security requirement.

F. For the purposes of this section, "person" includes a firm, partnership, joint venture, association, corporation, sole proprietorship or other business or governmental entity subject to a tax administered by this article but does not include an individual subject to individual income tax.
A.R.S. § 42-3453 — Arizona Code / Title 42 / Chapter 3 / Article 11 / Section 3453
42-3453 Presumption of tax on unstamped cigarettes
Status: in_force

42-3453. Presumption of tax on unstamped cigarettes

Except as otherwise provided in section 42-1127, subsection F and section 42-3452, subsection B, for the purpose of proper administration and to prevent evasion of the taxes imposed by this chapter, until the contrary is established, it is presumed that cigarettes that are sold, distributed, used or consumed by a person in this state, but not placed in packages or containers on which official tax stamps are affixed, are intended for first sale by the person and are subject to the taxes imposed by this chapter.
A.R.S. § 42-14101 — Arizona Code / Title 42 / Chapter 14 / Article 3 / Section 14101
42-14101 Definitions
Status: in_force

42-14101. Definitions

In this article, unless the context otherwise requires:

1. "Gas" means:

(a) Natural gas, including casinghead gas.

(b) All other hydrocarbons that are not defined as oil by this section.

(c) Helium and other nonhydrocarbon substances of a gaseous nature.

2. "Geothermal resource" has the same meaning prescribed in section 27-651.

3. "Gross production" means all oil, gas or geothermal resources that are produced and saved except:

(a) Any interest of the United States or this state or of any other person or entity that is exempt under the laws of the United States or the constitution or laws of this state in any oil, gas or geothermal resources or in the proceeds of oil, gas or geothermal resources.

(b) Oil, gas or geothermal resources that are used in producing operations or for repressuring or recycling purposes to develop and operate the producer's interests in oil, gas or geothermal resource wells in this state.

4. "Gross yield" means the amount for which the gross production is sold in the immediate vicinity of the well or, if not sold on the property, the field or posted price or representative market price at the well of oil, gas or geothermal resources that are transported from the property.

5. "Oil" means crude petroleum oil and other hydrocarbons regardless of gravity that are produced at the well in liquid form by ordinary production methods and that are not the result of condensation of gas after it leaves the reservoir.

6. "Produced", "producing" or "production" means any taking of oil or gas from any land in this state that is under the state's jurisdiction.

7. "Producer" means a person who owns, controls or leases, either as lessor or lessee, or who has any other interest in oil, gas or geothermal resource lands or oil, gas or geothermal resource wells on January 1 of each year if any person produced any oil, gas or geothermal resource in any manner from the lands or wells during the preceding calendar year. Producer includes any person who owns any royalty or other interest in any oil, gas or geothermal resources, or its value, whether produced by that person or by another person on that person's behalf, either by lease, contract or otherwise.
A.R.S. § 42-14105 — Arizona Code / Title 42 / Chapter 14 / Article 3 / Section 14105
42-14105 Basis for valuing producing oil, gas and geothermal resource interests
Status: in_force

42-14105. Basis for valuing producing oil, gas and geothermal resource interests

A. Producing oil, gas and geothermal resource interests shall be valued for tax purposes at the amount of the gross yield for the preceding calendar year. The gross yield is the valuation of the oil, gas or geothermal resource interests of the lands from which the oil, gas or geothermal resource is produced as of January 1 of the following year.

B. This valuation does not affect the valuation of property other than producing oil, gas or geothermal resource interests.

C. Notwithstanding any other law, the basis of valuation prescribed by this section is in lieu of any other method of valuing oil, gas or geothermal resource interests and the oil, gas and geothermal resource deposits for ad valorem tax purposes.
A.R.S. § 42-1110 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1110
42-1110 Successor liability for tax
Status: in_force

42-1110. Successor liability for tax

A. The taxes administered pursuant to this article except estate and income taxes are a lien on the property of any person subject to this article who sells his business or stock of goods, or quits business, if the person fails to make a final return and payment of the tax within fifteen days after selling or quitting his business.

B. A person's successors or assigns shall withhold from the purchase money an amount sufficient to cover the taxes required to be collected and interest or penalties due and payable until the former owner produces a receipt from the department showing that the department has been paid or a certificate stating that no amount is due as then shown by the records of the department. The department shall respond to a request from the seller for a certificate within fifteen days by either providing the certificate or a written notice stating why the certificate cannot be issued. If a subsequent audit shows a deficiency arising before the sale of the business, the deficiency is an obligation of the seller and does not constitute a liability against the buyer who has received a certificate from the department. If the purchaser of a business or stock of goods fails to withhold sufficient purchase money as provided by this subsection, he is personally liable for payment of the amount of taxes required to be collected or paid by the former owner on account of the business so purchased, with interest and penalties accrued and unpaid by the former owner or assignors.
A.R.S. § 42-12107 — Arizona Code / Title 42 / Chapter 12 / Article 3 / Section 12107
42-12107 Penalties
Status: in_force

42-12107. Penalties

A. If property that is classified as historic property becomes disqualified for that classification, a penalty shall be added to the tax levied against the property on the next tax roll equal to the lesser of:

1. Fifty per cent of the total amount by which property taxes on the property were reduced during the years the property had been classified as historic property.

2. Fifty per cent of the market value of the property.

B. If property that is classified as historic property becomes disqualified for that classification and the owner fails to give the notice required by section 42-12106, subsection B:

1. The county assessor shall determine the date that the notice should have been given and shall notify the owner and the county treasurer.

2. The treasurer shall add to the tax levied against the property on the next tax roll in addition to the penalty prescribed by subsection A of this section an amount equal to fifteen per cent of that penalty. The treasurer shall deposit monies collected pursuant to this paragraph in the taxpayers' information fund established by section 11-495.

C. Before assessing a penalty under this section in the case of disqualification pursuant to section 42-12105, subsection A, paragraph 3 or subsection B, paragraph 3 or 4, the assessor shall notify the property owner of the disqualification by mail, return receipt requested.

D. A penalty shall not be imposed under this section:

1. On the sale or transfer of the property to an ownership that makes the property exempt from taxation.

2. If the historic property is destroyed by fire or act of God unless the fire was the result of an intentional act by the owner or by an agent of the owner acting on the owner's behalf.

E. A penalty that is determined to be due under this section shall be paid to the county treasurer before the next tax roll is completed. Except as provided in subsection B of this section, the county treasurer shall distribute the penalty under this section among the respective taxing jurisdictions in proportion to their current primary property tax levies on the property.

F. The penalties prescribed by this section apply only to:

1. The current fifteen year assessment period with respect to noncommercial historic property.

2. The current ten year assessment period with respect to commercial historic property.
A.R.S. § 42-2065 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2065
42-2065 Abatement of interest for errors or delays caused by the department
Status: in_force

42-2065. Abatement of interest for errors or delays caused by the department

A. The director, in the director's discretion, may abate all or part of any assessment if additional interest has accrued on:

1. A deficiency due to any unreasonable error or delay by an officer or employee of the department acting in the employee's official capacity.

2. Any payment of tax to the extent that any error or delay in the payment is attributable to an officer or employee of the department being unreasonably erroneous or dilatory.

B. The director may consider an error or delay only if no significant aspect of the error or delay can be attributed to the taxpayer and after the department has contacted the taxpayer in writing with respect to the deficiency or payment.

C. The director's decision is considered to be the department's final decision or order and is subject to appeal to the state board pursuant to section 42-1253.
A.R.S. § 42-19002 — Arizona Code / Title 42 / Chapter 19 / Article 1 / Section 19002
42-19002 Personal property tax roll
Status: in_force

42-19002. Personal property tax roll

A. The county assessor shall enter the valuation of personal property on the personal property tax roll.

B. The personal property tax roll shall include:

1. The name and residence of the person who owns the personal property or who possesses the property and reports the property for taxation, if the person is known. If the name of the owner of the property is not known, the property shall be listed, valued and entered on the roll to "unknown owner".

2. A description of the property sufficient to identify it.

3. The location of the property.

4. The rate of taxation levied against the property.

C. The roll shall be in a proper format for extending the tax levied on the property.

D. The county assessor may administratively designate on the roll which property is subject to section 42-17153, subsection B and to section 42-19117 when forwarding the roll to the board of supervisors.
A.R.S. § 42-3104 — Arizona Code / Title 42 / Chapter 3 / Article 3 / Section 3104
42-3104 Monies allocated to the corrections fund
Status: in_force

42-3104. Monies allocated to the corrections fund

The department shall deposit, pursuant to sections 35-146, 35-147 and 42-1116, the following monies in the corrections fund established by section 41-1641:

1. 20 percent of the monies collected pursuant to section 42-3052, paragraph 1.

2. 50 percent of the monies collected pursuant to section 42-3052, paragraph 2.

3. 50 percent of the monies collected pursuant to section 42-3052, paragraph 3.

4. 50 percent of the monies collected pursuant to section 42-3052, paragraph 4.

5. 11.11 percent of the monies collected pursuant to section 42-3052, paragraph 5.

6. 50 percent of the monies collected pursuant to section 42-3052, paragraph 6.

7. 50 percent of the monies collected pursuant to section 42-3052, paragraph 7.

8. 50 percent of the monies collected pursuant to section 42-3052, paragraph 8.

9. 50 percent of the monies collected pursuant to section 42-3052, paragraph 9.