A.R.S. § 42-2202 — Arizona Code / Title 42 / Chapter 2 / Article 5 / Section 2202
42-2202 Separate liability election; definition
Status: in_force

42-2202. Separate liability election; definition

A. Notwithstanding section 43-301, subsection C and section 43-562, a taxpayer who filed a joint income tax return under section 43-309 for a taxable year and who meets the following requirements may elect to limit the taxpayer's liability pursuant to this section with respect to a deficiency assessed for that return:

1. At the time the election is filed, the electing taxpayer is no longer married to, or is legally separated from, the spouse with whom the taxpayer filed the joint return.

2. The electing taxpayer was not a member of the same household as the spouse with whom the joint return was filed at any time during the twelve month period ending on the date the election is filed.

B. If the department grants relief under this section, the taxpayer's liability for any deficiency assessed with respect to the return shall not exceed the portion of the deficiency properly allocable to the electing taxpayer.

C. The department shall allocate a deficiency under this section as follows:

1. The portion of any deficiency allocated to an individual under this section is the amount that bears the same ratio to the deficiency as the net amount of items taken into account in computing the deficiency and allocable to the individual under subsection D of this section bears to the net amount of all items taken into account in computing the deficiency.

2. If all or part of a deficiency is attributable to the disallowance of a credit, and that credit is allocated to one individual under subsection D of this section, the deficiency or portion shall be allocated to that individual. That amount shall not be taken into account under paragraph 1 of this subsection.

D. For the purposes of this section, items giving rise to the deficiency shall be allocated as follows:

1. Any item giving rise to a deficiency on a joint return shall be allocated to the individuals filing the return in the same manner as it would have been allocated if the individuals had filed separate returns for the taxable year, without regard to community property laws.

2. An item otherwise allocable to an individual under paragraph 1 of this subsection shall be allocated to the other individual filing the joint return to the extent the item gave rise to a tax benefit on the joint return to the other individual.

3. The director may provide for allocation of any item in a different manner if the department establishes that the different allocation is appropriate due to fraud of one or both individuals.

E. If the tax liability of the taxpayer's child is included on the joint return:

1. The child's liability shall be disregarded in computing the liability of either spouse.

2. The child's liability shall be allocated appropriately between the spouses.

F. Any deficiency that is assessed with respect to the return shall not exceed the portion of the deficiency properly allocable to the individual.

G. Each electing individual under this section has the burden of proof with respect to establishing the portion of any deficiency allocable to that individual.

H. An election under this section is invalid if the department demonstrates that assets were transferred between individuals filing a joint return as part of a fraudulent scheme by those individuals.

I. If the department demonstrates that an individual making an election under this section had actual knowledge at the time the individual signed the return of any item giving rise to all or part of a deficiency that is not allocable to that individual under subsection E of this section, the election does not apply to that deficiency. This subsection does not apply if the individual with actual knowledge establishes that the return was signed under duress.

J. Any determination under this section shall be made without regard to community property laws.

K. An election made by an individual under this section after the department has collected tax attributable to the deficiency is considered to be a claim for refund pursuant to section 42-1118. The individual making an election after making the payment must make the election within six months after making the payment or within the time limits prescribed by section 42-1106, whichever period expires later.

L. A taxpayer may appeal a determination under this section pursuant to section 42-1251 or 42-1253.

M. Except in the case of a jeopardy assessment under section 42-1111, the department may not levy or proceed in court to collect any tax for taxable years from which the taxpayer is claiming relief under this section until all determinations are final. The period of limitations under section 42-1104 is suspended for the same period for which collection activities are suspended.

N. The department shall notify and allow the other joint filer to participate in any administrative proceeding under this section.

O. The portion of the deficiency for which the electing individual is liable, without regard to this subsection, shall be increased by the value of any disqualified asset, as defined in section 6015(c)(4)(B) of the internal revenue code, transferred to the individual.

P. For the purposes of this section, "deficiency" has the same meaning prescribed by section 6211 of the internal revenue code.
A.R.S. § 42-13007 — Arizona Code / Title 42 / Chapter 13 / Article 1 / Section 13007
42-13007 Education, training and certification advisory committee
Status: in_force

42-13007. Education, training and certification advisory committee

A. The education, training and certification advisory committee is established consisting of the following members:

1. A member of the state board of equalization who is appointed by the chairman of the state board.

2. Three county assessors or deputy county assessors who are appointed by the director.

3. A training coordinator in the property valuation and equalization division of the department who is appointed by the director.

B. The members who are appointed pursuant to subsection A, paragraphs 1 and 2 shall be appointed to one year terms. The training coordinator who serves pursuant to subsection A, paragraph 3 serves at the pleasure of the director, shall serve as secretary to the committee and shall keep written minutes of all committee meetings. The members of the committee shall choose a chairman from among the members. The committee shall meet at least semiannually at a time and place set by the chairman. Additional meetings shall be held on the call of the chairman or at the request of two or more members.

C. The committee shall evaluate:

1. The guidelines proposed by the department for placing persons who apply for admission to the assessor certification program into the proper professional level of certification.

2. The guidelines proposed by the department pertaining to appraisal reports, experience, education or training submitted for credit in the assessor certification program.

3. The curriculum proposed by the department for the assessor certification program.

4. The procedures proposed by the department for grading demonstration appraisal reports, including any graders who are designated for the reports.

5. The form and content of examinations that are given for credit in the assessor certification program.
A.R.S. § 42-18121 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18121
42-18121 Payment of subsequent taxes by certificate holder; separate certificate of purchase by assignment; fee
Status: in_force

42-18121. Payment of subsequent taxes by certificate holder; separate certificate of purchase by assignment; fee

A. On or after June 1, if a person who holds a certificate of purchase desires to pay subsequent taxes, accrued interest and related fees due on the property, the person shall exhibit the certificate or receipt of registered certificate to the county treasurer. The treasurer shall enter the amount of the payment on the certificate and on the record of tax lien sales. The amount of subsequent taxes bears interest at the rate stated in the certificate of purchase from the first day of the month following the purchase of the subsequent tax lien.  The county treasurer shall collect a fee of five dollars from the holder of the certificate for making the entries.

B. Beginning in calendar year 2016, on or after June 1 in a county with a population of more than three million persons if no prior year certificates of purchase are outstanding, if a person who holds a certificate of purchase for tax year 2014 and afterwards desires to pay subsequent taxes, the county treasurer shall issue a separate certificate of purchase by assignment for each subsequent year's taxes, accrued interest and related fees due on the property.  The principal amount of each subsequent year's certificate of purchase bears interest at the rate stated in the original certificate of purchase exhibited by the person from the first day of the month following the purchase of the subsequent certificate.  The treasurer shall collect a fee of five dollars for assignment of a certificate of purchase for each subsequent year. Except as provided by section 42-18201, subsection B, subsequent certificates of purchase by assignment carry the same foreclosure right as the original certificate of purchase, and partial payments shall be accepted by the treasurer as prescribed by section 42-18056, subsection C, by any party with a vested interest in the property.
A.R.S. § 42-1103.01 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1103.01
42-1103.01 Action to enjoin return preparers
Status: in_force

42-1103.01. Action to enjoin return preparers

A. The director may apply to the tax court to enjoin any return preparer from engaging in business if the return preparer has:

1. Been subject to a civil or criminal penalty prescribed by section 42-1125 or 42-1127.

2. Misrepresented the preparer's experience or education.

3. Guaranteed the payment of any tax refund or the allowance of any tax credit.

4. Engaged in any other fraudulent or deceptive conduct that substantially interferes with the proper administration of this title or title 43.

B. On application by the director and after a hearing, the court may enjoin the return preparer from engaging in business as a return preparer.
A.R.S. § 42-19103 — Arizona Code / Title 42 / Chapter 19 / Article 3 / Section 19103
42-19103 Proration of tax on property that is leased or rented from inventory
Status: in_force

42-19103. Proration of tax on property that is leased or rented from inventory

The taxes that are levied on personal property that is periodically leased or rented from the inventory of retailers or wholesalers assessed pursuant to section 42-19005 shall be prorated by three hundred sixty-fifths to be determined by the number of days the property is leased or rented.
A.R.S. § 42-18119 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18119
42-18119 Certificate of purchase as evidence of valid procedure
Status: in_force

42-18119. Certificate of purchase as evidence of valid procedure

The certificate of purchase or its certified copy is prima facie evidence of the correct performance and regularity of all acts pertaining to the tax lien sale and the validity and enforceability of the tax lien.
A.R.S. § 42-3052 — Arizona Code / Title 42 / Chapter 3 / Article 2 / Section 3052
42-3052 Classifications of luxuries; rates of tax
Status: in_force

42-3052. Classifications of luxuries; rates of tax

The taxes under this chapter are imposed at the following rates:

1. On each sealed container of spirituous liquor at the rate of three dollars per gallon and at a proportionate rate for any lesser or greater quantity than one gallon.

2. On each container of vinous liquor, except cider, of which the alcoholic content is not greater than twenty-four per cent by volume at the rate of eighty-four cents per gallon and at a proportionate rate for any lesser or greater quantity than one gallon.

3. On each container of vinous liquor of which the alcoholic content is greater than twenty-four per cent by volume, containing eight ounces or less, twenty-five cents, and for each eight ounces for containers containing more than eight ounces, twenty-five cents.

4. On each gallon of malt liquor or cider, sixteen cents, and at a proportionate rate for any lesser or greater quantity than one gallon.

5. On each cigarette, nine-tenths cent.

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

7. On all cavendish, plug or twist tobacco, one-half cent per ounce or fractional part of an ounce.

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

9. On cigars of all descriptions except those included in paragraph 8 of this section, made of tobacco or any tobacco substitute:

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

(b) If manufactured to retail at more than five cents each, two cents on each cigar.
A.R.S. § 42-19005 — Arizona Code / Title 42 / Chapter 19 / Article 1 / Section 19005
42-19005 Property leased or rented from inventory
Status: in_force

42-19005. Property leased or rented from inventory

A. Subject to section 42-19103, personal property that is periodically leased or rented from the inventory of retailers or wholesalers shall be assessed in the same manner as other personal property included in class one pursuant to sections 42-12001 and 42-15001.

B. The department shall:

1. Establish the method of determining the valuation of such property.

2. Prescribe all forms and reports required under this section.

C. Each retailer and wholesaler that leases or rents personal property from its inventory shall file an affidavit of particulars with the county assessor not later than the tenth day of each month for the preceding month's activity.

D. This section does not apply to property that is owned and held by persons primarily engaged in the business of renting personal property.
A.R.S. § 42-18005 — Arizona Code / Title 42 / Chapter 18 / Article 1 / Section 18005
42-18005 Property tax collection; liens assigned to state
Status: in_force

42-18005. Property tax collection; liens assigned to state

The county treasurer or board of supervisors, as applicable, may act as the agent for the state for the collection of property taxes under this chapter with respect to any tax liens that are assigned to the state or any property that is held by the state.
A.R.S. § 42-5165 — Arizona Code / Title 42 / Chapter 5 / Article 4 / Section 5165
42-5165 Retailer; advertising absorption of tax prohibited; penalty
Status: in_force

42-5165. Retailer; advertising absorption of tax prohibited; penalty

It is unlawful for any retailer to advertise or hold out or state to the public or to any customer or purchaser, directly or indirectly, that the tax or any part of the tax imposed by this article will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or that if added any part thereof will be refunded.
A.R.S. § 42-16109 — Arizona Code / Title 42 / Chapter 16 / Article 3 / Section 16109
42-16109 Corrections and changes to tax roll
Status: in_force

42-16109. Corrections and changes to tax roll

A. The county board may correct any error or mistake in the assessor's valuation or legal classification under the law when the county board considers it necessary to list the property on the roll at its full cash value.

B. The county board shall require the assessor to place on the roll and determine the valuation or legal classification of any property that is subject to taxation but that is not on the roll. In the absence of the assessor, the county board shall determine the valuation or legal classification of the omitted property and transmit the proposed valuation or legal classification to the department as provided by section 42-11056.

C. The county assessor shall make the necessary changes in the tax roll and records to reflect the county board's determination.

D. The department has the right to intervene and be heard in any proceeding pursuant to this section.
A.R.S. § 42-5063 — Arizona Code / Title 42 / Chapter 5 / Article 2 / Section 5063
42-5063 Utilities classification; definitions
Status: in_force

42-5063. Utilities classification; definitions

A. The utilities classification is comprised of the business of:

1. Producing and furnishing or furnishing to consumers natural or artificial gas and water.

2. Providing to retail electric customers ancillary services, electric distribution services, electric generation services, electric transmission services and other services related to providing electricity.

B. The utilities classification does not include:

1. Sales of ancillary services, electric distribution services, electric generation services, electric transmission services and other services related to providing electricity, gas or water to a person who resells the services.

2. Sales of natural gas or liquefied petroleum gas used to propel a motor vehicle.

3. Sales of alternative fuel, as defined in section 1-215, to a used oil fuel burner who has received a permit to burn used oil or used oil fuel under section 49-426 or 49-480.

4. Sales of ancillary services, electric distribution services, electric generation services, electric transmission services and other services that are related to providing electricity to a retail electric customer who is located outside this state for use outside this state if the electricity is delivered to a point of sale outside this state.

5. Sales or other transfers of renewable energy credits or any other unit created to track energy derived from renewable energy resources.  For the purposes of this paragraph, "renewable energy credit" means a unit created administratively by the corporation commission or governing body of a public power utility to track kilowatt hours of electricity derived from a renewable energy resource or the kilowatt hour equivalent of conventional energy resources displaced by distributed renewable energy resources.

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

(a) By a person that is engaged in business under this section.

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

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

1. Revenues received by a municipally owned utility in the form of fees charged to persons constructing residential, commercial or industrial developments or connecting residential, commercial or industrial developments to a municipal utility system or systems if the fees are segregated and used only for capital expansion, system enlargement or debt service of the utility system or systems.

2. Revenues received by any person or persons owning a utility system in the form of reimbursement or contribution compensation for property and equipment installed to provide utility access to, on or across the land of an actual utility consumer if the property and equipment become the property of the utility. This deduction shall not exceed the value of such property and equipment.

3. Gross proceeds of sales or gross income derived from sales to:

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

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

4. The portion of gross proceeds of sales or gross income that is derived from sales to a qualified environmental technology manufacturer, producer or processor as defined in section 41-1514.02 of a utility product and that is used directly in environmental technology manufacturing, producing or processing. This paragraph shall apply for twenty full consecutive calendar or fiscal years from the date the first paper manufacturing machine is placed in service. In the case of a qualified environmental technology manufacturer, producer or processor who does not manufacture paper, the time period shall begin with the date the first manufacturing, processing or production equipment is placed in service.

5. The portion of gross proceeds of sales or gross income attributable to transfers of electricity by any retail electric customer owning a solar photovoltaic energy generating system to an electric distribution system, if the electricity transferred is generated by the customer's system.

6. Gross proceeds of sales or gross income derived from sales of electricity, natural gas or liquefied petroleum gas to a qualified manufacturing or smelting business. A utility that claims this deduction shall report each month, on a form prescribed by the department, the name and address of each qualified manufacturing or smelting business for which this deduction is taken. This paragraph applies to gas transportation services. For the purposes of this paragraph:

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

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

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

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

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

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

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

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

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

7. Gross proceeds of sales or gross income derived from sales of electricity or natural gas to a business that operates an international operations center in this state and that is certified by the Arizona commerce authority pursuant to section 41-1520.

D. For the purposes of this section:

1. "Ancillary services" means those services so designated in federal energy regulatory commission order 888 adopted in 1996 that include the services necessary to support the transmission of electricity from resources to loads while maintaining reliable operation of the transmission system according to good utility practice.

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

3. "Electric distribution service" means distributing electricity to retail electric customers through the use of electric distribution facilities.

4. "Electric generation service" means providing electricity for sale to retail electric customers but excluding electric distribution or transmission services.

5. "Electric transmission service" means transmitting electricity to retail electric customers or to electric distribution facilities so classified by the federal energy regulatory commission or, to the extent permitted by law, so classified by the Arizona corporation commission.

6. "Other services" includes metering, meter reading services, billing and collecting services.

7. "Retail electric customer" means a person who purchases electricity for that person's own use, including use in that person's trade or business and not for resale, redistribution or retransmission.

8. "Utility pole" means any wooden, metal or other pole used for utility purposes and the pole's appurtenances that are attached or authorized for attachment by the person controlling the pole.
A.R.S. § 42-11006 — Arizona Code / Title 42 / Chapter 11 / Article 1 / Section 11006
42-11006 Injunctive relief prohibited
Status: in_force

42-11006. Injunctive relief prohibited

A court may not issue an injunction, writ of mandamus or any other extraordinary writ in any action or proceeding against the state, a county or municipality or a state, county or municipal officer to prevent or enjoin:

1. Extending an assessment on the tax roll.

2. Collecting an imposed or levied tax.
A.R.S. § 42-18202 — Arizona Code / Title 42 / Chapter 18 / Article 5 / Section 18202
42-18202 Notice
Status: in_force

42-18202. Notice

A. At least thirty days before filing an action to foreclose the right to redeem under this article, but not more than one hundred eighty days before such an action is commenced or may be commenced under section 42-18201, the certificate of purchase holder shall send notice of intent to file the foreclosure action by certified mail to:

1. The property owner of record according to the records of the county recorder in the county in which the property is located or to all of the following:

(a) The property owner, as determined by section 42-13051, at the property owner's mailing address according to the records of the county assessor in the county in which the property is located.

(b) The situs address of the property, if shown on the tax roll and if different from the property owner's address under subdivision (a) of this paragraph.

(c) The tax bill mailing address according to the records of the county treasurer in the county in which the property is located if that address is different from the addresses under subdivisions (a) and (b) of this paragraph.

2. The treasurer of the county in which the real property is located. The county treasurer may not accept partial payments under section 42-18056, subsection C after the date the treasurer receives a notice of action to foreclose the right to redeem.

B. The notice shall include:

1. The property owner's name.

2. The real property tax parcel identification number.

3. The county assessor's description of the real property.

4. The certificate of purchase number.

5. The proposed date of filing the action.

6. The following statement in substantially the following form:

Notice: If you believe that your property has value beyond the tax burden on the property and you do not want to lose any interest or equity in the property, you must request an excess proceeds sale pursuant to section 42-18204, Arizona Revised Statutes.

C. If the certificate of purchase holder:

1. Complies with subsection A, paragraph 1, subdivisions (a), (b) and (c) of this section, the certificate of purchase holder is considered to have substantially complied with the requirements of this section and is not required to send the notice to any other address.

2. Fails to send the notice required by this section, the certificate of purchase holder is considered to have substantially failed to comply with this section.  A court may not enter any judgment to foreclose the right to redeem under this article until the certificate of purchase holder sends the notice required by this section.
A.R.S. § 42-2058 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2058
42-2058 Basis for evaluating employee performance
Status: in_force

42-2058. Basis for evaluating employee performance

A. The department shall establish procedures to monitor the performance of department employees that include, if applicable, using evaluations obtained from taxpayers.

B. Fair and equitable treatment of taxpayers is a criterion for evaluating employee performance, including being free of favoritism or bias, reasonable and consistent with the laws of this state and the rules, procedures and rulings of the department.

C. The department shall not evaluate an employee on the basis of taxes assessed or collected by that employee.
A.R.S. § 42-16157 — Arizona Code / Title 42 / Chapter 16 / Article 4 / Section 16157
42-16157 Appeal of valuation or legal classification from county assessor to state board of equalization
Status: in_force

42-16157. Appeal of valuation or legal classification from county assessor to state board of equalization

A. Except as provided in subsection C or D of this section, if the county assessor denies all or part of a petition under section 42-16055, and if a county board of equalization is not established in the county where the property is located, the petitioner may appeal the assessor's decision to the state board of equalization by filing with the state 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 state board. If, in the director's opinion, a decision of an assessor is erroneous, the director may appeal the assessor's decision to the state 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 who receives a notice of valuation under section 42-15105 may appeal the valuation or legal classification to the state board as provided in subsection A of this section within twenty-five days after the date of the assessor's notice.

D. A property owner whose petition is denied, in whole or in part, pursuant to section 42-19051 may only appeal the valuation or legal classification to the state board as provided in subsection A of this section within twenty days after the date of the assessor's notice of refusal or decision.

E. The state board may contract with any county with a population of less than five hundred thousand persons according to the most recent United States decennial census to review and hold hearings and make decisions on petitions filed under section 42-16105. These hearings shall be conducted in the county in which the property of the subject hearings is located.
A.R.S. § 42-15251 — Arizona Code / Title 42 / Chapter 15 / Article 6 / Section 15251
42-15251 Definition of remote municipal property
Status: in_force

42-15251. Definition of remote municipal property

In this article, unless the context otherwise requires, "remote municipal property" means either:

1. Property that is owned by a city, town or successor political subdivision and that is not located in the county in which all or part of the city, town or political subdivision is located and from which water may be withdrawn or diverted and transported for use on other property in the county in which the city, town or political subdivision is located. For purposes of this paragraph, property that is owned by a city, town or political subdivision includes property that is owned directly by the city, town or political subdivision and property that is owned indirectly through a nonprofit corporation or another entity that is owned or controlled by the city, town or political subdivision.

2. Property that is privately owned and that previously met the requirements of paragraph 1.
A.R.S. § 42-13603 — Arizona Code / Title 42 / Chapter 13 / Article 13 / Section 13603
42-13603 Valuation; income method; requirements; confidentiality; definitions
Status: in_force

42-13603. Valuation; income method; requirements; confidentiality; definitions

A. Subject to section 42-13604, this article allows the owner of low-income multifamily residential rental property to elect a statutory income method for valuing the low-income multifamily residential rental property.

B. On timely election by the owner of a low-income multifamily residential rental property, the county assessor shall value property under this article based on the income method to value using the actual annual income and actual annual expenses of the property and using a capitalization rate that is based on the prevailing capitalization rate for a conventional multifamily property in the same geographic area adjusted to account for the differences between low-income multifamily residential rental properties and conventional multifamily properties, including the additional risk that the recorded affirmative land use restrictive covenants agreement places on the net operating income from the property, the restriction to the use of the property for affordable housing, the time period that the income and use restrictions remain in effect on the property and the illiquidity caused by the reduced pool of qualified potential buyers. After the capitalization rate is determined, the county assessor shall add the capitalization rate to the effective tax rate before calculating the full cash value.

C. The owner of a low-income multifamily residential rental property may elect to have the valuation of the property determined by the income method to value by submitting the three most current annual audited financial statements required by the Arizona department of housing to the county assessor before September 1 of the year immediately preceding the year for which the property will be valued.  If the owner does not yet have three annual audited financial statements because the property is too new to the low-income housing tax credit program to have three years of audited data, the owner may submit and the county assessor shall use for valuation purposes the available audited financial statements and the pro forma income and expense data that was provided to the Arizona department of housing at the time the low-income housing tax credit application was submitted to the Arizona department of housing.

D. The department shall prescribe a form for an owner of a low-income multifamily residential housing tax credit project to elect to value the property pursuant to this article.

E. All information a taxpayer submits to the county assessor pursuant to this article is confidential pursuant to chapter 2, article 1 of this title.

F. If a property previously qualified for valuation under this article but has been fully transitioned to current use as a conventional multifamily property in compliance with 26 United States Code section 42(h)(6)(E), the property shall no longer be valued under this article and the property's limited value shall be calculated pursuant to section 42-13302.

G. For the purposes of this section:

1. "Actual annual expenses" means all operating expenses, as reflected in the annual income and expense documentation submitted pursuant to subsection C of this section, including the following:

(a) Maintenance and repair costs.

(b) Supplies.

(c) Service contracts.

(d) Utilities.

(e) Tenant internet service and other services required by the Arizona department of housing.

(f) Administrative costs, including costs for the following:

(i) Accounting and auditing.

(ii) Office supplies.

(iii) Compliance and asset management.

(iv) Monitoring imposed by the Arizona department of housing.

(v) Attorney fees.

(vi) Payroll and payroll taxes.

(vii) Employee benefits.

(viii) Security.

(ix) Supportive and any other services stipulated by the affirmative land use restrictive covenants agreement.

(x) Marketing, leasing, advertising and promotion.

(g) Property management fees.

(h) Ground and land lease costs.

(i) Property and liability insurance.

(j) Taxes, except property taxes determined pursuant to subsection B of this section.

(k) Required replacement and operating reserves.

(l) For properties for which the tenants pay their own utility costs, utility costs for common areas and vacant units.

(m) Any other costs imposed pursuant to the affirmative land use restrictive covenants agreement.

2. "Actual annual income":

(a) Means all operating income generated from the rental of real property, including rents, application and late fees and forfeited security deposits.

(b) Does not include the federal income tax credits or investment proceeds resulting from the federal income tax credits that are allocated to the owner.
A.R.S. § 42-14353 — Arizona Code / Title 42 / Chapter 14 / Article 8 / Section 14353
42-14353 Failure or refusal to make annual statement; penalty
Status: in_force

42-14353. Failure or refusal to make annual statement; penalty

A. If a railroad company fails or refuses to file the statement or schedule, the department shall assess a penalty in the amount of the lesser of:

1. One-half of one per cent of the value that is estimated by the department.

2. One hundred dollars per day for each day the company fails to file the statement or schedule.

B. A refusal to make the statement or schedule of any item constitutes a separate offense.

C. The director may request the attorney general to commence an action in the name of this state to recover the penalty prescribed by subsection A.
A.R.S. § 42-5122 — Arizona Code / Title 42 / Chapter 5 / Article 3.1 / Section 5122
42-5122 Tax exemption; sales to Indian tribes, tribally owned businesses, tribal entities and affiliated Indians
Status: in_force

42-5122. Tax exemption; sales to Indian tribes, tribally owned businesses, tribal entities and affiliated Indians

The taxes imposed by this chapter do not apply to the gross proceeds of sales or gross income derived from any of the following:

1. Business activities performed by the Indian tribe, tribally owned business, tribal entity or affiliated Indian if the business activity takes place on the Indian reservation.

2. Business activities performed by a nonaffiliated Indian or non-Indian vendor on an Indian reservation for the Indian tribe, tribal entity or affiliated Indian.

3. Contracting activities performed on an Indian reservation by the Indian tribe, tribally owned business, tribal entity or affiliated Indian.

4. Contracting activities performed for the Indian tribe, tribally owned business, tribal entity or affiliated Indian on the Indian reservation by a nonaffiliated Indian or non-Indian contractor.

5. Retail sales of tangible personal property to the Indian tribe, tribally owned business, tribal entity or affiliated Indian if the sale of tangible personal property takes place on the Indian reservation.  A sale is deemed to take place on the Indian reservation if the tangible personal property is ordered from and delivered on an Indian reservation.

6. The sale of a motor vehicle to an enrolled member of an Indian tribe who resides on the Indian reservation established for that Indian tribe.
A.R.S. § 42-5014 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5014
42-5014 Return and payment of tax; estimated tax; extensions; abatements; definitions
Status: in_force

42-5014. Return and payment of tax; estimated tax; extensions; abatements; definitions

A. Except as provided in subsection B, C, D, E or F of this section, the taxes levied under this article:

1. Are due and payable monthly in the form required by section 42-5018 for the amount of the tax, to the department, on or before the twentieth day of the month next succeeding the month in which the tax accrues.

2. Are delinquent as follows:

(a) For taxpayers that are required or elect to file and pay electronically in any month, if not received by the department on or before the last business day of the month.

(b) For all other taxpayers, if not received by the department on or before the business day preceding the last business day of the month.

B. The department, for any taxpayer whose estimated annual liability for taxes imposed or administered by this article or chapter 6 of this title is between $2,000 and $8,000, shall authorize the taxpayer to pay the taxes on a quarterly basis. The department, for any taxpayer whose estimated annual liability for taxes imposed by this article is less than $2,000, shall authorize the taxpayer to pay the taxes on an annual basis.  For the purposes of this subsection, the taxes due under this article:

1. For taxpayers that are authorized to pay on a quarterly basis, are due and payable monthly in the form required by section 42-5018 for the amount of the tax, to the department, on or before the twentieth day of the month next succeeding the quarter in which the tax accrues.

2. For taxpayers that are authorized to pay on an annual basis, are due and payable monthly in the form required by section 42-5018 for the amount of the tax, to the department, on or before the twentieth day of January next succeeding the year in which the tax accrues.

3. Are delinquent as follows:

(a) For taxpayers that are required or elect to file and pay electronically in any quarter, if not received by the department on or before the last business day of the month.

(b) For all other taxpayers that are required to file and pay quarterly, if not received by the department on or before the business day preceding the last business day of the month.

(c) For taxpayers that are required or elect to file and pay electronically on an annual basis, if not received by the department on or before the last business day of January.

(d) For all other taxpayers that are required to file and pay annually, if not received by the department on or before the business day preceding the last business day of January.

C. The department may require a taxpayer whose business is of a transient character to file the return and remit the taxes imposed by this article on a daily, a weekly or a transaction-by-transaction basis, and those returns and payments are due and payable on the date fixed by the department without a grace period otherwise allowed by this section. For the purposes of this subsection, "business of a transient character" means sales activity by a taxpayer not regularly engaged in selling within this state that is conducted from vehicles, portable stands, rented spaces, structures or booths, or concessions at fairs, carnivals, circuses, festivals or similar activities for not more than thirty consecutive days.

D. If the business entity under which a taxpayer reports and pays income tax under title 43 has an annual total tax liability under this article, article 6 of this chapter and chapter 6, article 3 of this title of $1,000,000 or more in 2019, $1,600,000 or more in 2020, $2,300,000 or more in 2021, $3,100,000 or more in 2022 or $4,100,000 or more in 2023 and each year thereafter, based on the actual tax liability in the preceding calendar year, regardless of the number of offices at which the taxes imposed by this article, article 6 of this chapter or chapter 6, article 3 of this title are collected, or if the taxpayer can reasonably anticipate such liability in the current year, the taxpayer shall report on a form prescribed by the department and pay an estimated tax payment each June.  Any other taxpayer may voluntarily elect to pay the estimated tax payment pursuant to this subsection. The payment shall be made on or before June 20 in the same manner as the taxpayer is required to make regular payments and is delinquent if not received by the department on or before the last business day of June if the taxpayer is required to make the payment by electronic means, is delinquent on or before the business day preceding the last business day of June for those taxpayers allowed to file by mail or is delinquent if not received by the department on the business day preceding the last business day of June for those taxpayers allowed to file in person. The estimated tax paid shall be credited against the taxpayer's tax liability under this article, article 6 of this chapter and chapter 6, article 3 of this title for the month of June for the current calendar year. The estimated tax payment shall equal either:

1. One-half of the actual tax liability under this article plus one-half of any tax liability under article 6 of this chapter and chapter 6, article 3 of this title for May of the current calendar year.

2. The actual tax liability under this article plus any tax liability under article 6 of this chapter and chapter 6, article 3 of this title for the first fifteen days of June of the current calendar year.

E. An online lodging marketplace, as defined in section 42-5076, that is registered with the department pursuant to section 42-5005, subsection L:

1. Shall remit to the department the applicable taxes payable pursuant to section 42-5076 and chapter 6 of this title with respect to each online lodging transaction, as defined in section 42-5076, facilitated by the online lodging marketplace.

2. Shall report the taxes monthly and remit the aggregate total amounts for each of the respective taxing jurisdictions.

3. Shall not be required to list or otherwise identify any individual online lodging operator, as defined in section 42-5076, on any return or any attachment to a return.

F. A person who is licensed pursuant to title 32, chapter 20 and who is licensed with the department pursuant to section 42-5005, subsection M shall:

1. File a consolidated return monthly with respect to all managed properties for which the licensee files an electronic consolidated tax return pursuant to section 42-6013.

2. Remit to the department the aggregate total amount of the applicable taxes payable pursuant to this chapter and chapter 6 of this title for all of the respective taxing jurisdictions with respect to the managed properties.

G. A peer-to-peer car sharing program that is licensed by the department pursuant to section 42-5005, subsection N:

1. Shall electronically remit to the department the applicable taxes pursuant to section 42-5071 and chapter 6 of this title and any additional taxes, fees or charges on the gross proceeds or gross income of a shared vehicle transaction, subject to the limitations in section 28-9616, and, if the peer-to-peer car sharing program allows owners of vehicles that are not individual-owned shared vehicles to use the peer-to-peer car sharing program, applicable surcharges pursuant to sections 5-839 and 48-4234.

2. Shall electronically report the taxes monthly and remit the aggregate total amounts for each respective taxing jurisdiction.

3. Is not required to list or otherwise identify an individual-owned shared vehicle on any return or any attachment to a return.  The peer-to-peer car sharing program shall retain surcharge and tax information for each peer-to-peer car sharing program transaction and shall provide the information to the department at the department's request.

H. The remittance of transaction privilege tax and any other tax applicable to a shared vehicle transaction by a peer-to-peer car sharing program fully satisfies any obligation of a shared vehicle owner to remit any taxes applicable to the shared vehicle transaction.

I. The taxpayer shall prepare a return showing the amount of the tax for which the taxpayer is liable for the preceding month, and shall mail or deliver the return to the department in the same manner and time as prescribed for the payment of taxes in subsection A of this section. If the taxpayer fails to file the return in the manner and time as prescribed for the payment of taxes in subsection A of this section, the amount of the tax required to be shown on the return is subject to the penalty imposed pursuant to section 42-1125, subsection X, without any reduction for taxes paid on or before the due date of the return.  The return shall be verified by the oath of the taxpayer or an authorized agent or as prescribed by the department pursuant to section 42-1105, subsection B.

J. Any person who is taxable under this article and who makes cash and credit sales shall report the cash and credit sales separately and may apply for and obtain from the department an extension of time to pay taxes due on the credit sales. The department shall grant the extension under such rules as the department prescribes. When the extension is granted, the taxpayer shall thereafter include in each monthly report all collections made on such credit sales during the month next preceding and shall pay the taxes due at the time of filing such a report.

K. The returns required under this article shall be made on forms prescribed by the department and shall capture data with sufficient specificity to meet the needs of all taxing jurisdictions.

L. Any person who is engaged in or conducting business in two or more locations or under two or more business names shall file the return required under this article using an electronic filing program established by the department.

M. For taxable periods beginning from and after December 31, 2017, any taxpayer with an annual total tax liability under this chapter and chapter 6 of this title of $20,000 or more, based on the actual tax liability in the preceding calendar year, regardless of the number of offices at which the taxes imposed by this chapter or chapter 6 of this title are collected, or a taxpayer that can reasonably anticipate that liability in the current year, shall file the return required under this article using an electronic filing program established by the department.

N. For taxable periods beginning from and after December 31, 2018, any taxpayer with an annual total tax liability under this chapter and chapter 6 of this title of $10,000 or more, based on the actual tax liability in the preceding calendar year, regardless of the number of offices at which the taxes imposed by this chapter or chapter 6 of this title are collected, or a taxpayer that can reasonably anticipate that liability in the current year, shall file the return required under this article using an electronic filing program established by the department.

O. For taxable periods beginning from and after December 31, 2019, any taxpayer with an annual total tax liability under this chapter and chapter 6 of this title of $5,000 or more, based on the actual tax liability in the preceding calendar year, regardless of the number of offices at which the taxes imposed by this chapter or chapter 6 of this title are collected, or a taxpayer that can reasonably anticipate that liability in the current year, shall file the return required under this article using an electronic filing program established by the department.

P. For taxable periods beginning from and after December 31, 2020, any taxpayer with an annual total tax liability under this chapter and chapter 6 of this title of $500 or more, based on the actual tax liability in the preceding calendar year, regardless of the number of offices at which the taxes imposed by this chapter or chapter 6 of this title are collected, or a taxpayer that can reasonably anticipate that liability in the current year, shall file the return required under this article using an electronic filing program established by the department.

Q. Any taxpayer that is required to report and pay using an electronic filing program established by the department may apply to the director, on a form prescribed by the department, for an annual waiver from the electronic filing requirement.  The director may grant a waiver, which may be renewed, if any of the following applies:

1. The taxpayer has no computer.

2. The taxpayer has no internet access.

3. Any other circumstance considered to be worthy by the director exists.

R. A waiver is not required if the return cannot be electronically filed for reasons beyond the taxpayer's control, including situations in which the taxpayer was instructed by either the internal revenue service or the department of revenue to file by paper.

S. The department, for good cause, may extend the time for making any return required by this article and may grant such reasonable additional time within 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.

T. The department, with the approval of the attorney general, may abate small tax balances if the administration costs exceed the amount of tax due.

U. For the purposes of subsection D of this section, "taxpayer" means the business entity under which the business reports and pays state income taxes regardless of the number of offices at which the taxes imposed by this article, article 6 of this chapter or chapter 6, article 3 of this title are collected.

V. For the purposes of this section, "individual-owned shared vehicle", "peer-to-peer car sharing program", "shared vehicle owner" and "shared vehicle transaction" have the same meanings prescribed in section 28-9601.
A.R.S. § 42-19112 — Arizona Code / Title 42 / Chapter 19 / Article 3 / Section 19112
42-19112 Redemption
Status: in_force

42-19112. Redemption

A. The owner of personal property, a lien claimant or a conditional vendor may redeem the property at any time before the actual sale by the sheriff by paying to the sheriff the taxes, interest and costs.

B. The right to redeem terminates after the property is sold.
A.R.S. § 42-17203 — Arizona Code / Title 42 / Chapter 17 / Article 5 / Section 17203
42-17203 County levy for community college; election
Status: in_force

42-17203. County levy for community college; election

A. A county that is not in an organized community college district may conduct an election to authorize a property tax levy for community college purposes that is not within the limitation on primary property taxes that is otherwise prescribed by section 42-17051.

B. In order to levy taxes for community college purposes in excess of the limitations otherwise prescribed on primary property tax, the board of supervisors of a county that is not in an organized community college district shall adopt a resolution by an affirmative vote of at least two-thirds of its membership requesting the voters to approve a community college reimbursement levy and setting the time and place for the election.

C. The board shall submit the questions to the qualified electors at an election held on the first Tuesday following the first Monday in November as prescribed by section 16-204, subsection F. Except as otherwise provided in this section, the election shall be held according to the provisions applying to bond issuance elections in title 35, chapter 3, article 3.

D. In the resolution requesting the voters to approve the levy and setting the time and place for the election, the board shall state:

1. The estimated maximum dollar amount of secondary property taxes that could be collected in the first year if the voters approve the levy for payment of tuition under section 15-1469, subsection C, paragraph 1.

2. The estimated secondary property tax rate that will be levied if the voters approve the levy.

3. The estimated decrease of the primary property tax rate if the voters approve the levy for the payment of tuition under section 15-1469, subsection C, paragraph 1.

4. That the amount of community college reimbursement levy will vary from year to year to pay tuition under section 15-1469, subsection C, paragraph 1.

5. The maximum dollar amount of secondary property taxes that could be collected in the first year if the voters approve the levy for payment of tuition under section 15-1469, subsection B, paragraph 2 or to establish a campus in the county that is affiliated with a community college district as provided in subsection E of this section.

6. The maximum growth rate that will be allowed for secondary property taxes collected in each subsequent year if the voters approve the levy for payment of tuition under section 15-1469, subsection B, paragraph 2 or to establish a campus in the county that is affiliated with a community college district as provided in subsection E of this section.

E. The board may use monies it collects under this section to either:

1. Reimburse the costs of students pursuant to section 15-1469, subsection B, paragraphs 1 and 2 as approved by the voters.

2. Establish a campus in the county that is affiliated with a community college district.

F. If the levy is approved by the voters for purposes of reimbursement pursuant to section 15-1469, the maximum amount of taxes that the board may levy for any year in which the authority is in effect is the amount of reimbursement pursuant to section 15-1469, subsection C, paragraph 1 and any portion of the reimbursement as specified in the resolution pursuant to subsection D, paragraphs 5 and 6 of this section as approved by the board of supervisors.

G. The board of supervisors shall levy the tax in the same manner as county property taxes as provided in section 42-17151. If an unexpended balance of the monies collected pursuant to this section remains after satisfying the requirements of subsection E of this section, the board shall use the balance to reduce the community college levy under this section in the following year. If the balance exceeds the requirements for the following year, the board shall use the balance to reduce any other property tax authorized by law to be collected by the county.

H. The amounts collected pursuant to this section:

1. Shall not be included in the levy limitation pursuant to section 42-17051 for any subsequent year.

2. Shall be collected from a levy of secondary property taxes.

3. Except as provided in this section, are exempt pursuant to article IX, section 19, subsection (5), Constitution of Arizona, from levy limitations.
A.R.S. § 42-6109.01 — Arizona Code / Title 42 / Chapter 6 / Article 3 / Section 6109.01
42-6109.01 Jail facilities excise tax; maintenance of effort; definitions
Status: in_force

42-6109.01. Jail facilities excise tax; maintenance of effort; definitions

A. The board of supervisors of any county that levies a jail facilities excise tax under section 42-6109, by resolution adopted before the expiration of that tax, may call for a countywide general election to authorize the levy of a transaction privilege tax under this section, in addition to all other taxes.  If approved by the qualified electors voting at the countywide general election, the county shall levy and the department shall collect the tax at rates of not more than 4.0 per cent of the transaction privilege tax rate prescribed by section 42-5010, subsection A applying to each person engaging or continuing in the county in a business taxed under chapter 5, article 1 of this title.  By resolution, the board of supervisors may decrease the rates of the tax during the term of the tax.

B. The resolution shall:

1. Include a statement of the taxes that have been collected pursuant to section 42-6109 and an accounting of how those revenues have been expended by project, program or category authorized by section 42-6109.

2. Include a projection of the amount of taxes anticipated to be collected annually if the tax levy under section 42-6109.01 is approved in the countywide general election.

3. Identify the projects, programs and categories for which expenditures are contemplated and the amount of taxes that are estimated to be expended for each.

4. Be printed in the ballot proposition publicity pamphlet which will be mailed to every household with a registered voter.

C. Taxes under this section shall be levied beginning in the month following the expiration of the tax under section 42-6109 and may continue for not more than twenty years after the date the tax collection begins.

D. 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.  If the county that initially imposes the tax under this section is divided into two or more new counties during the term of the tax, each new county shall continue to impose the tax, but the state treasurer shall transmit the net revenues collected within each county to that county as determined pursuant to section 42-5034.  The county treasurer shall segregate all the monies received under this section for use only for the purposes authorized by this section.  The county treasurer may disburse revenues from the tax only to:

1. Finance construction or renovation of adult and juvenile jail facilities.

2. Maintain and operate adult and juvenile jail facilities.

3. Fund the following for the purpose of reducing the expense of adult and juvenile jail facilities:

(a) Implementing an integrated criminal justice information system.

(b) Developing regional centers for courts not of record.

(c) Implementing differentiated case management for criminal cases in superior court.

(d) Consolidating criminal divisions of the superior court in the county to a common location.

(e) Expanding pretrial release supervision.

(f) Implementing electronic monitoring of preadjudicated defendants.

(g) Enhancing substance abuse evaluation and programming.

(h) Increasing drug court admissions to include preadjudicated defendants and expanding drug court jurisdiction.

(i) Using community based juvenile detention and postadjudication programs.

(j) Implementing other programs designed to reduce the expense of adult and juvenile facilities.

E. The county shall maintain its support of adult and juvenile jail facilities.  In the first fiscal year the tax is levied under this section the county shall pay an amount equal to the amount paid under section 42-6109 in the preceding fiscal year, adjusted by the percentage change in the GDP price deflator from the preceding fiscal year.  In each fiscal year the tax is imposed, the county shall pay an amount equal to the amount paid under this subsection in the preceding fiscal year, adjusted by the percentage change in the GDP price deflator from the preceding fiscal year. The county treasurer shall transfer that amount, without further authorization, in twelve equal monthly installments from the county general fund for the uses prescribed in subsection D of this section.

F. For purposes of this section:

1. "GDP price deflator" has the same meaning prescribed by section 41-563.

2. "Jail facility" means a jail or other place of detention of persons charged with or convicted of a crime or of persons who are subject to the jurisdiction of the juvenile court, including related support facilities.
A.R.S. § 42-1126 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1126
42-1126 Fee for bad checks; definition
Status: in_force

42-1126. Fee for bad checks; definition

A. The department may charge and collect a fee of $50 from a taxpayer that offers a check, draft, negotiable order of withdrawal or similar instrument, or an electronic funds transfer, automated clearing house debit or automated clearing house credit drawn on a bank or other depository institution in full or partial payment of a tax if the instrument, transfer, debit or credit is not paid or is dishonored by the institution.

B. For the purposes of this section, "tax" includes any tax, penalty, interest or fee administered pursuant to this article.
A.R.S. § 42-13251 — Arizona Code / Title 42 / Chapter 13 / Article 6 / Section 13251
42-13251 Equalization of valuations by department
Status: in_force

42-13251. Equalization of valuations by department

A. The department may adopt a schedule of examining and comparing the valuations of property in the several counties every year.

B. The review shall be according to and consistent with the valuation directives, rules and guidelines adopted by the department.

C. Each county assessor shall provide complete copies of data files and proposed assessments to the department on or before December 15 of the year preceding the valuation year. If the data is not complete or is in a format that is not readable by the department, the department may use the latest available data for the purposes of complying with this article.
A.R.S. § 42-1206 — Arizona Code / Title 42 / Chapter 1 / Article 5 / Section 1206
42-1206 Authority to release levy and return property
Status: in_force

42-1206. Authority to release levy and return property

A. The department may under prescribed rules release the levy upon all or part of the property or rights to property levied upon if the department determines that such action will facilitate the collection of the liability. Such release shall not operate to prevent any subsequent levy.

B. If the department determines that property has been wrongfully levied upon, the department may return:

1. The specific property levied upon.

2. An amount of money equal to the amount of money levied upon.

3. An amount of money equal to the amount of money received by this state from a sale of such property.

C. Property may be returned at any time. An amount equal to the amount of money levied upon or received from such sale may be returned at any time before the expiration of nine months from the date of such levy.

D. In its discretion and at any time, the department may release a levy or return property levied on if the department determines that any of the following conditions applies:

1. The levy was premature or otherwise in violation of the department's administrative procedures.

2. The taxpayer has entered into an installment payment agreement, unless the agreement provides otherwise.

3. The department's interests are best served by the release or return.
A.R.S. § 42-5036 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5036
42-5036 Procedure upon variance between county share of tax monies received and budget estimate
Status: in_force

42-5036. Procedure upon variance between county share of tax monies received and budget estimate

All monies paid to a county in a fiscal year under this article which are in excess of the amount of such monies estimated in the budget for that year shall be placed and kept in a special fund by the county until the next succeeding fiscal year, and the amount in the special fund shall be included in the budget of the county for that year and shall be expended only for the purposes included in the budget.
A.R.S. § 42-11120 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11120
42-11120 Exemption for property of veterans' organizations
Status: in_force

42-11120. Exemption for property of veterans' organizations

Property that is owned by a United States veterans' organization that qualifies as a charitable organization and that is recognized under either section 501(c)(3) or 501(c)(19) of the internal revenue code is exempt from taxation if the property is used predominantly for those purposes and is not used or held for profit.
A.R.S. § 42-17305 — Arizona Code / Title 42 / Chapter 17 / Article 7 / Section 17305
42-17305 Filing the claim for deferral; appealing denied claim
Status: in_force

42-17305. Filing the claim for deferral; appealing denied claim

A. A taxpayer shall file the claim form with the assessor of the county in which the residence is located. The tax that is due for a tax year may be deferred if a valid claim is filed after January 1 but before April 1 of the tax year for which the deferral is claimed.

B. On the taxpayer's request, an employee in the county assessor's office may assist the taxpayer in completing the claim form.

C. The county assessor shall review the claim, may request additional documentary evidence to support the claim and shall make the final determination on the validity of the claim, based on the submitted documentation, on or before June 1.

D. If the assessor denies the claim, the taxpayer may appeal the denial to tax court as provided in section 42-16201, except that the taxpayer shall file the notice of appeal within fifteen days after the assessor's denial.
A.R.S. § 42-1125.01 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1125.01
42-1125.01 Civil penalties for return preparers, electronic filing and payment participants
Status: in_force

42-1125.01. Civil penalties for return preparers, electronic filing and payment participants

A. If a return preparer or electronic return preparer fails to furnish a completed copy of any return, statement or other document to the taxpayer when the return, statement or other document is presented for the taxpayer’s signature, the return preparer shall pay a penalty of fifty dollars unless it is shown that the failure is due to reasonable cause and not due to wilful neglect.  The maximum penalty amount for a return preparer under this subsection during any calendar year shall not exceed twenty-five thousand dollars.

B. If a return preparer or electronic return preparer fails to sign any return, statement or other document, the return preparer or electronic return preparer shall pay a penalty of fifty dollars unless it is shown that the failure is due to reasonable cause and not due to wilful neglect.  The maximum penalty amount for a return preparer or electronic return preparer under this subsection during any calendar year shall not exceed twenty-five thousand dollars.

C. If a return preparer or electronic return preparer fails to furnish the preparer's identifying number on any return, statement or other document, the return preparer or electronic return preparer shall pay a penalty of fifty dollars unless it is shown that the failure is due to reasonable cause and not due to wilful neglect.  The maximum penalty amount for a return preparer or electronic return preparer under this subsection during any calendar year shall not exceed twenty-five thousand dollars.

D. If a return preparer or electronic return preparer fails to retain a copy of any return, statement or other document for six years for transaction privilege and use tax returns and four years for all other returns, statements or 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, the return preparer or electronic return preparer shall pay a penalty of fifty dollars unless it is shown that the failure is due to reasonable cause and not due to wilful neglect.  The maximum penalty amount for a return preparer or electronic return preparer under this subsection during any calendar year shall not exceed twenty-five thousand dollars.

E. If a return preparer or electronic return preparer fraudulently endorses or negotiates any check that is issued to a taxpayer, the return preparer or electronic return preparer shall pay a penalty of five hundred dollars.

F. An electronic return preparer or electronic return transmitter that fails to comply with any electronic filing program requirement shall pay a penalty of fifty dollars for each failure unless it is shown that the failure is due to reasonable cause and not due to wilful neglect.  The maximum penalty amount for a return preparer, electronic return preparer or electronic return transmitter under this subsection during any calendar year shall not exceed twenty-five thousand dollars.

G. The penalties provided in this section are in addition to other penalties provided by law.

H. All penalties are payable on notice and demand from the department.

I. This section applies to all taxes administered by the department.
A.R.S. § 42-12058 — Arizona Code / Title 42 / Chapter 12 / Article 2 / Section 12058
42-12058 Registry of real property burdened by conservation easements
Status: in_force

42-12058. Registry of real property burdened by conservation easements

A. The county assessor in each county shall establish and maintain a public digital registry of each parcel of property in the county that is classified as class two (C) pursuant to section 42-12002, paragraph 3 from and after December 31, 2016 because it is burdened by a conservation easement.

B. The registry shall include the following information regarding each parcel:

1. The name of the owner or owners of the real property that is burdened by the conservation easement.

2. The name of the holder of the conservation easement and the name of any governmental body, charitable corporation or trustee of a charitable trust having a third-party right of enforcement.

3. The date the conservation easement was created or recorded.

4. Whether the conservation easement is perpetual or limited in duration and, if so limited, the date or conditions under which the conservation easement terminates.

5. The value of the real property that is burdened by the conservation easement as determined by an independent appraisal prior to the creation and recording of the conservation easement.

C. The assessor shall periodically review and revise as necessary the information contained in the registry for the purpose of verifying that the listed properties should remain classified as class two (C).
A.R.S. § 42-14301 — Arizona Code / Title 42 / Chapter 14 / Article 7 / Section 14301
42-14301 Definitions
Status: in_force

42-14301. Definitions

In this article, unless the context otherwise requires:

1. "Entire receipts" means, as applied to a private car company operating partly in and partly outside this state, all earnings on business beginning and ending in this state, and a proportion based on the proportion of mileage in this state to the entire mileage over which the business is done, of earnings on all trans-state and interstate business passing through, into or out of this state.

2. "Private car company" means a person who is engaged in the business of operating, furnishing or leasing cars, whether or not owned by the person and regardless of what name is applied to the cars, to be used for transporting or accommodating persons or freight over railroad lines that are located wholly or partially in this state and that are not owned, leased or operated by that person.
A.R.S. § 42-5204 — Arizona Code / Title 42 / Chapter 5 / Article 5 / Section 5204
42-5204 Computation of the net severance base
Status: in_force

42-5204. Computation of the net severance base

The net severance base is fifty per cent of the difference between the gross value of production and the production costs.
A.R.S. § 42-17304 — Arizona Code / Title 42 / Chapter 17 / Article 7 / Section 17304
42-17304 Deferral claim
Status: in_force

42-17304. Deferral claim

A. The claim for deferral shall be on a form that is prescribed by the state treasurer and that provides an explanation of the requirements of this article and instructions for completing and filing the claim. The claim shall:

1. Identify the residence by street address and tax parcel number.

2. Recite the facts establishing the individual's and residence's eligibility for deferral, including all mortgages, reverse mortgages, deeds of trust and other security interests that constitute current liens on the residence with the year or years they were recorded.

3. State the maximum amount of taxes that can be deferred on the residence. The cumulative amount of deferred taxes and interest that attaches to a tax deferred residence under this article, plus any amounts secured by mortgages, reverse mortgages, deeds of trust and other real property security interest with respect to the residence, may not exceed ninety per cent of the full cash value of the residence determined by the county assessor for the tax year.

4. State the total taxable income of all persons residing in the residence for the taxable year immediately preceding the current year. The taxpayer shall attach a copy of the state income tax return filed by each person who resided in the residence during the preceding taxable year. If any person residing in the residence was not required to file a state income tax return under title 43 for the preceding taxable year, the taxpayer shall certify that the total taxable income of all persons residing in the residence for the taxable year immediately preceding the current year does not exceed ten thousand dollars.

B. In addition to the claim form, the taxpayer shall submit copies of all relevant documentation that is necessary to establish eligibility for the deferral.

C. The taxpayer shall sign the claim form under penalty of perjury.
A.R.S. § 42-15052 — Arizona Code / Title 42 / Chapter 15 / Article 2 / Section 15052
42-15052 Compiling information; property report; examining documents; summoning witnesses
Status: in_force

42-15052. Compiling information; property report; examining documents; summoning witnesses

The county assessor may:

1. Demand from each person or firm or from the president, cashier, treasurer or managing agent of each corporation or association that owns, claims, controls or possesses property in the county a correct report under oath or affirmation of all property in the county that the person, firm, corporation or association owns, claims, possesses or controls.

2. Request information from each person, firm, corporation or association that bears on reporting or valuing taxable property.

3. Examine maps, drawings, books, invoices and papers.

4. Summon witnesses to appear and compel them to provide the information.
A.R.S. § 42-16108 — Arizona Code / Title 42 / Chapter 16 / Article 3 / Section 16108
42-16108 Decision
Status: in_force

42-16108. Decision

A. Except as provided in subsection B of this section, the county board shall either grant or refuse the request of the petitioner, in whole or in part, as it considers just and proper within ten days after the date of the hearing, and in any event not later than October 15.

B. In the case of an appeal under section 42-16105, subsection C, the county board shall complete the hearing and issue a decision on or before the third Friday in November of the calendar year preceding the year in which the taxes are levied.

C. In the case of a personal property appeal under section 42-19052, the county board of equalization shall complete the hearing and issue a decision on or before December 1 of the calendar year in which the taxes are levied.

D. Within ten days after its decision, the county board shall mail a copy of the decision to the county assessor and to the petitioner at the address shown on the petition.

E. Any decision of the county board shall not exceed the county assessor's noticed valuation and recommended classification.
A.R.S. § 42-1101.01 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1101.01
42-1101.01 Definitions
Status: in_force

42-1101.01. Definitions

In this article, unless the context otherwise requires:

1. "Audit" means a review or examination of a taxpayer's accounts, financial information, books and records and any other document to ensure information is reported correctly on a return in accordance with this chapter and to verify the reported amount of tax is correct.

2. "Electronic return preparer" means a person who for compensation prepares an electronic return, statement or other document or prepares a substantial portion of an electronic return, statement or other document or transforms a paper version of a completed return, statement or other document to an electronic version of the same return, statement or other document for filing with the department.  Electronic return preparer does not include a person who for compensation provides only computational and informational software used to prepare and file taxes.

3. "Electronic return transmitter" means a person who receives the electronic return, statement or other document from a taxpayer or electronic return preparer for ultimate transmittal to the department.

4. "Return preparer":

(a) Means any person that prepares a return, statement or other document or substantial portion of a return, statement or other document for compensation, regardless of the media used to prepare the return.

(b) Does not include a person because the person:

(i) Furnishes typing, reproducing or other mechanical assistance.

(ii) Prepares a return, statement or other document for an employer and is regularly and continuously employed by the employer.

(iii) Prepares as a fiduciary a return, statement or other document for any person.

(iv) Prepares a claim for refund or a return, statement or other document for a taxpayer in response to any notice of deficiency issued to the taxpayer or in response to any waiver of restriction after the commencement of an audit of the taxpayer.

(v) Furnishes computational and informational software used by the taxpayer to prepare the taxpayer's return, statement or other document.

(vi) Only prepares payment documents for payment made to the department pursuant to section 42-1129.

5. "Return, statement or other document" means any return, claim for refund, statement or other document that is required or authorized to be filed with the department pursuant to this title or title 43, including returns for any political subdivision of this state for which the department collects taxes.
A.R.S. § 42-12056 — Arizona Code / Title 42 / Chapter 12 / Article 2 / Section 12056
42-12056 Renewable energy systems valuation; definition
Status: in_force

42-12056. Renewable energy systems valuation; definition

A. For properties subject to this chapter and that are class three as defined in section 42-12003 or class four as defined in section 42-12004, renewable energy systems and any other device or system designed primarily for the production of renewable energy in which the majority of the energy is consumed on-site, are considered to add no value to the property.

B. For the purposes of this section, "renewable energy systems" means electric generation systems and electric transmission and distribution that is used or useful for the generation, storage, transmission or distribution of electric power, energy or fuel derived from solar, wind or other nonpetroleum renewable sources, including materials and supplies.
A.R.S. § 42-19004 — Arizona Code / Title 42 / Chapter 19 / Article 1 / Section 19004
42-19004 Property in transit and transient property
Status: in_force

42-19004. Property in transit and transient property

A. Personal property that is in transit through a county shall be assessed in the county where the owner is domiciled.

B. Transient property that is used in business or commerce in this state shall be assessed in the county where it is found.
A.R.S. § 42-1105.01 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1105.01
42-1105.01 Signatures; return preparers and electronic return preparers; definition
Status: in_force

42-1105.01. Signatures; return preparers and electronic return preparers; definition

Any person who is a return preparer or an electronic return preparer shall sign the prepared return, statement or other document according to the department’s administrative rules or tax rulings.  For the purposes of this section, "tax ruling" has the same meaning prescribed in section 42-2052.
A.R.S. § 42-1118 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1118
42-1118 Refunds, credits, offsets and abatements
Status: in_force

42-1118. Refunds, credits, offsets and abatements

A. If the department determines that any amount of tax, penalty or interest has been paid in excess of the amount actually due, the department shall credit the excess amount against any tax administered pursuant to this article, including any penalty, interest or other amounts owed by the taxpayer to the department. If it is determined that the amount cannot be credited against a tax or installment of taxes due from the taxpayer, the department may:

1. Refund the entire amount of tax, interest and penalty, in a lump sum or in not more than five annual installments, to the taxpayer from whom it was collected.

2. Issue to the taxpayer a credit voucher for the entire amount of tax, interest and penalty collected, to be carried forward and applied against future tax liabilities until exhausted.

3. Refund part, and issue a credit voucher for the balance, of the tax, interest and penalties as provided in paragraphs 1 and 2 of this subsection.

B. If the total amount withheld from income under section 43-401 exceeds the amount of the tax on the employee's entire taxable income as computed under title 43, the department shall refund the amount of the excess deducted without requiring a filing of a refund claim as provided in this section.  The failure of the department to make the refund does not limit the right of the taxpayer to file a claim for a refund pursuant to this section if the claim is not barred under section 42-1106. The department shall not refund amounts less than one dollar unless specifically requested by the taxpayer at the time the return or claim for refund is filed.

C. Any overpayment that may result from withholdings or estimates pursuant to section 43-401, 43-581 or 43-582 shall not be credited or refunded unless an Arizona income tax return has been filed for the tax year for which the withholdings or estimates were made.

D. The department shall give a vendor who has a duty to collect use tax pursuant to chapter 5, article 4 of this title and who has not collected that tax full credit or offset for any use tax, interest and penalty paid to the department by the purchaser when issuing a determination of a deficiency pursuant to section 42-1108. This credit or offset shall be computed from the date of the use tax payment by the purchaser. If the purchaser has been audited by the department for use tax for the period of the purchase, the purchaser is considered to have paid the use tax to the department. For other purchases, the vendor may submit an affirmation by a purchaser on a form prescribed by the department that use tax was paid on the purchase. A fully completed certificate, taken in good faith by the vendor, constitutes proof that the vendor is entitled to this credit or offset. The department may require a purchaser who has submitted the certificate to establish the accuracy and completeness of the information contained in the certificate.  If the purchaser cannot establish the accuracy and completeness of the information, the purchaser is liable for a penalty equal to the amount of tax and interest that would have been paid by the seller and for the additional penalties pursuant to section 42-1125. Payment of the penalty relieves the purchaser of any responsibility for paying the use tax. The department may require this proof and may assess the purchaser within the later of the period of limitations set forth in section 42-1104 or one year from the date the notice of proposed deficiency is issued to the vendor if the purchaser does not establish the accuracy of the information contained in the certificate.

E. Each claim for refund shall be filed with the department in writing and shall identify the claimant by name, address and tax identification number. Each claim shall provide the amount of refund requested, the specific tax period involved and the specific grounds on which the claim is founded. Refunds are subject to setoff for debts pursuant to section 42-1122.

F. A motor vehicle manufacturer that repurchases a vehicle pursuant to section 44-1263 or for reasons of consumer satisfaction may apply for a refund of the taxes paid under chapter 5 of this title if that manufacturer has refunded the amount of tax to the consumer.  A refund is allowed under this subsection only if the manufacturer provides satisfactory proof to the department that tax amounts attributed to the sale of the vehicle were collected from the consumer and that the manufacturer refunded an amount of tax to the consumer.  Any refund provided under this subsection is in lieu of any refund on the vehicle that the dealer may otherwise be entitled to receive.  A manufacturer must apply for a refund under this subsection within four years after repurchasing the vehicle.  For the purposes of this subsection:

1. "Consumer" has the same meaning prescribed in section 44-1261.

2. "Motor vehicle manufacturer" means a corporation engaged in the business of producing passenger cars, trucks and multipurpose passenger vehicles as described in 49 Code of Federal Regulations section 571.3.

3. "Satisfactory proof" includes copies of checks and a purchase or lease agreement that lists the vehicle identification number and that itemizes the amount that was collected as tax from the consumer.

G. The department shall not imprint the full social security number or other taxpayer identifier used pursuant to section 42-1105 on any taxpayer refund check, voucher or other credit documentation issued to the taxpayer under this section.

H. If any amount has been erroneously determined to be due from any person but not yet collected, the department shall cancel the amount or amounts on its records.

I. If, with or after the filing of a protest or an appeal with the department, the state board of tax appeals or the court, a taxpayer pays the tax protested or appealed before the department, board or court acts upon the protest or the appeal, such body shall treat the protest or the appeal as a claim for refund or an appeal from the denial of a claim for refund filed under this section.
A.R.S. § 42-3153 — Arizona Code / Title 42 / Chapter 3 / Article 4 / Section 3153
42-3153 Remedies for collection
Status: in_force

42-3153. Remedies for collection

A. Every tax and all increases, interest and penalties imposed by this article may be collected by action in tax court instituted in the name of this state by the attorney general upon request of the department. This remedy is in addition to existing remedies or those provided by law.

B. At the request of the department, the attorney general or the county attorney shall bring an action in the name of this state to enjoin any person against whom a tax is levied under this chapter from engaging or continuing in any business for which a tax is imposed by this chapter until the taxes have been paid, and until the person has complied with this chapter.
A.R.S. § 42-3303.01 — Arizona Code / Title 42 / Chapter 3 / Article 7 / Section 3303.01
42-3303.01 Stamps required for cigarettes sold on Indian reservations to enrolled tribal members; definition
Status: in_force

42-3303.01. Stamps required for cigarettes sold on Indian reservations to enrolled tribal members; definition

A. From and after December 31, 2014, for cigarettes purchased on an Indian reservation by an enrolled member of the governing tribe:

1. Where that tribe does not levy an excise tax on tobacco products or exempts its enrolled members from the tax, a distributor shall affix tax-exempt stamps that are distinguishable from any other tax stamp required by this chapter.

2. Where that tribe levies an excise tax on tobacco products and does not exempt its members from the tax, a distributor shall purchase and affix tax stamps pursuant to article 11 of this chapter that are distinguishable from any other tax or tax-exempt stamp required by this chapter.

B. For the purposes of this section, "excise tax on tobacco products" has the same meaning prescribed for "luxury, sales, transaction privilege or similar tax" under section 42-3301.
A.R.S. § 42-5202 — Arizona Code / Title 42 / Chapter 5 / Article 5 / Section 5202
42-5202 Levy of tax
Status: in_force

42-5202. Levy of tax

A. There is levied on any severer, and the department shall collect, an excise tax, denominated as a severance tax.

B. Except as provided in section 42-5203, the severance tax is in lieu of any other tax imposed upon the activities of mining and processing by article 1 of this chapter.

C. The amount of the severance tax levied on a severer engaging in the business of mining shall be determined by multiplying the net severance base by two and one-half per cent.
A.R.S. § 42-18117 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18117
42-18117 Record of tax lien sales
Status: in_force

42-18117. Record of tax lien sales

The county treasurer shall make a correct record of all sales of real property tax liens, known as the record of tax lien sales, containing:

1. The date of sale.

2. A description of each parcel on which a tax lien was sold.

3. The name of the owner, if known.

4. The name of the purchaser.

5. The total amount of taxes, interest, penalties and charges for which the tax lien was sold.

6. The amount of subsequent taxes and interest paid by the purchaser.

7. The name of the assignee and the date of assignment of the certificate.

8. The name of the person redeeming and the date of redemption.

9. The total amount paid for redemption.

10. The name of any person to whom conveyed and the date of the deed.
A.R.S. § 42-3452 — Arizona Code / Title 42 / Chapter 3 / Article 11 / Section 3452
42-3452 Payment of tax required to sell, distribute or transfer tobacco products
Status: in_force

42-3452. Payment of tax required to sell, distribute or transfer tobacco products

A. Except as provided in subsection B of this section, a person may not:

1. Sell, offer for sale, distribute or transfer any tobacco products on which a tax is imposed by this chapter to any person within this state unless at the time of the sale, distribution or transfer the tax has been paid. The department shall consider tobacco taxes paid at the time of the sale, distribution or transfer of cigarettes if evidenced by an Arizona tax stamp or any other official indicia affixed to the package by a licensed distributor. The department shall consider tobacco taxes paid at the time of the sale, distribution or transfer of tobacco products other than cigarettes if a licensed distributor reports and remits the taxes on the products in accordance with the manner, method and time prescribed by section 42-3501. Sworn returns that are prepared and remitted by a licensed distributor under section 42-3501 constitute official indicia that tobacco taxes have been paid on the tobacco products.

2. Sell cigarettes that have Arizona tax stamps affixed unless the tax evidenced by the stamps is actually paid.  The department shall not refund any amount of that tax on the grounds that the stamps are not required to be affixed to the cigarettes.

B. A distributor licensed pursuant to section 42-3401 may not sell, distribute or transfer tobacco products for which the distributor is licensed to another such licensed distributor without paying the tax at the time of the sale, distribution or transfer.
A.R.S. § 42-11002 — Arizona Code / Title 42 / Chapter 11 / Article 1 / Section 11002
42-11002 Property subject to taxation
Status: in_force

42-11002. Property subject to taxation

All property in this state is subject to taxation except as provided in article IX, Constitution of Arizona, and article 3 of this chapter.
A.R.S. § 42-14303 — Arizona Code / Title 42 / Chapter 14 / Article 7 / Section 14303
42-14303 Annual statement
Status: in_force

42-14303. Annual statement

On or before April 1 each private car company shall file an annual statement with the department. The statement shall be in a form prescribed and furnished by the department and under the oath of a company officer who is designated by the company. The statement shall contain:

1. The name and nature of the business of the company, whether the company is an individual, association or corporation and under the laws of which state or country it is organized.

2. The location of its principal office.

3. The names and mailing addresses of the company's president, secretary, auditor, treasurer, superintendent and general manager and the officer designated by the company.

4. The entire receipts including all amounts that were earned or charged, whether or not actually received, for business done by the company in this state for the preceding calendar year.

5. The proportion of its entire receipts for business transacted in this state in connection with other persons for the year.

6. The total mileage made by the rolling stock of the company over railroads in this state and in other states during the same period.

7. The total miles of railroad in and outside this state over which the company's rolling stock has been run during the same period.

8. The average number of miles traveled by the cars of each class of cars during the year.

9. The number of cars necessary for the mileage traveled in this state, under circumstances that ordinarily attend the use of cars, and if different classes of cars are used by the company, of each class of cars.

10. The full cash value on that date of the cars necessary to provide for mileage to be reported as required by this article.

11. The real and personal property owned by the company that is subject to taxation in this state and the location and full cash value of the property in the county or municipality where it is located.

12. Such other facts and information as the department requires.
A.R.S. § 42-13257 — Arizona Code / Title 42 / Chapter 13 / Article 6 / Section 13257
42-13257 Report to property tax oversight commission
Status: in_force

42-13257. Report to property tax oversight commission

In conjunction with the valuation examinations under this article, the department shall report to the property tax oversight commission established by section 42-17002 on the accuracy of valuations reported in prior years pursuant to section 42-17052.
A.R.S. § 42-16205.01 — Arizona Code / Title 42 / Chapter 16 / Article 5 / Section 16205.01
42-16205.01 New owner of property; review and appeal
Status: in_force

42-16205.01. New owner of property; review and appeal

A. If a former owner of property did not have a pending court appeal or receive final judgment or dismissal in court regarding the appeal of the valuation or legal classification, both of the following apply to the new owner of property:

1. A new owner of property that was valued by the assessor and that changed ownership before December 15 of the valuation year may appeal the valuation or legal classification to court on or before December 15 of the valuation year.

2. If the change of ownership occurs after December 15 of the valuation year, the new owner may appeal to tax court by December 15 of the year in which the taxes are levied.

B. A new owner may intervene, assume, consolidate, maintain or continue the former owner's position in any pending petition for review or tax appeal under this article for the tax years in which the new owner owns the property.

C. This section does not limit the new owner's right to file in tax court under subsection A or B of this section.
A.R.S. § 42-5303 — Arizona Code / Title 42 / Chapter 5 / Article 7 / Section 5303
42-5303 Administration
Status: in_force

42-5303. Administration

Unless the context otherwise requires, article 1 of this chapter governs the administration, collection and enforcement of the taxes imposed by this article, except that:

1. If a municipal water delivery system is subject to the transaction privilege tax:

(a) A separate license and bond are not required for the tax imposed by this article, but the tax due under this article shall be included, reported and paid with the transaction privilege tax, with a separate accounting for the tax imposed by this article.

(b) The tax imposed by this article may be included without segregation in any notice and lien filed for unpaid transaction privilege taxes.

2. A separate bond is not required of employees of the department in administering this article.
A.R.S. § 42-2002 — Arizona Code / Title 42 / Chapter 2 / Article 1 / Section 2002
42-2002 Disclosure of confidential information prohibited
Status: in_force

42-2002. Disclosure of confidential information prohibited

A. A person, including a former employee or agent of the department or the office of administrative hearings or a person previously having an administrative duty for the department or the office of administrative hearings, who has received confidential information while an employee or agent of the department or the office of administrative hearings, while performing an administrative duty for the department or the office of administrative hearings, shall not disclose that information except as provided in this article.

B. A person who has received confidential information pursuant to an exception under section 42-2003, subsection B or G shall not disclose that information except as provided in this article.

C. Confidential information may not be disclosed relating to applications for cannabis or controlled substance tax licenses or payments under prior law.

D. Confidential information shall not be disclosed if the department determines that disclosure would seriously impair any civil or criminal tax investigation or if the disclosure would be contrary to section 6103(d), 6103(p)(8) or 7213 of the internal revenue code.
A.R.S. § 42-1003 — Arizona Code / Title 42 / Chapter 1 / Article 1 / Section 1003
42-1003 Department organization; director's staff; deputy director; assistant directors; fingerprinting; consumer reports; definitions
Status: in_force

42-1003. Department organization; director's staff; deputy director; assistant directors; fingerprinting; consumer reports; definitions

A. The department consists of such divisions as the director deems necessary to achieve maximum efficiency, economy and effectiveness in administering and collecting taxes. The departmental organization shall provide for administering taxes as prescribed by law and for administrative services to the department, including data processing, accounting, records management, publications, collection of delinquent accounts, personnel services and budget and property control.

B. The director may divide the state into a reasonable number of districts and establish a full-time or part-time branch office or offices in each district as may be necessary. In establishing districts and branch offices, the director shall give due consideration to economy of administration and service to the taxpayers.

C. The director may employ, appoint and remove, in the manner prescribed by law, such officers, agents, branch office deputies and other staff personnel as the director deems necessary to assist in administering the department. The director's staff may perform such functions as the director prescribes, including budget development, legal research and analysis, tax research, departmental audit and public relations.

D. A deputy director of the department may be appointed by the director with the approval of the governor. The deputy director, if appointed, serves at the pleasure of the director with the approval of the governor. The deputy director shall assist the director in administering the department and has the duties and responsibilities as the director assigns.

E. The director, with the approval of the governor, may appoint an assistant director to head each division of the department. Any assistant director appointed is directly responsible for the functions performed by the assistant director's division. Each assistant director serves at the pleasure of the director with the approval of the governor.

F. The director may appoint other deputies or assistants to conduct hearings, prescribe administrative rules or perform any other duty prescribed for the department by law.

G. The director may require officers, agents, deputies and other employees designated by the director to give bond for the faithful performance of their duties in such an amount and with such sureties as the director determines or as prescribed by statute. The department shall pay all premiums on the bonds out of monies appropriated for the administration of the department.

H. The director and officers and employees designated by the director may administer an oath to any person or take the acknowledgement of any person in respect of any return or report required by law or the administrative rules of the department.

I. The director may reassign the administration of taxes and may assign and delegate the duties, powers and functions of the department among its divisions in order to achieve maximum efficiency, economy and effectiveness. The director or the deputy director, if any, shall enforce cooperation among the divisions in the provision and integration of all functions at all levels of the department.

J. The director may obtain a state and federal criminal records check for an applicant for employment for the purpose of hiring personnel or for any employee or contractor if the applicant, employee or contractor may receive or access federal tax information obtained from the internal revenue service in the course of employment with the department. Before making a final offer of employment or for purposes of screening an employee or contractor, the director shall require the applicant, employee or contractor to submit a full set of fingerprints.  The director shall submit the fingerprints to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544.  The department of public safety may exchange this fingerprint data with the federal bureau of investigation. The department of revenue may disclose information obtained pursuant to this subsection only to members of the department's staff solely for employment purposes. An applicant, employee or contractor is not disqualified from employment under this subsection except in accordance with section 13-904, subsection E.

K. The director may obtain a consumer report for an applicant for employment for the purpose of hiring personnel whose job duties include distributing tax revenues pursuant to this title and title 43.  Consumer report information may be obtained and used only in accordance with the fair credit reporting act (P.L. 90-321; 84 Stat. 1128; 15 United States Code sections 1681 through 1681x).  The consumer report information shall not be the sole reason for the disqualification of the applicant.

L. For the purposes of this section:

1. "Applicant" means any person who seeks employment as a new hire or any employee of the department who seeks a transfer, a reclassification or a reassignment to a different position.

2. "Federal tax information" means returns and return information as defined in 26 United States Code section 6103(b) that the department receives directly from the internal revenue service or obtains through an internal revenue service-authorized secondary source and that are subject to the confidentiality protections and safeguarding requirements of the internal revenue code and corresponding federal regulations and guidance.
A.R.S. § 42-6010 — Arizona Code / Title 42 / Chapter 6 / Article 1 / Section 6010
42-6010 Retail business location municipal tax incentives; prohibition; penalty; exceptions; definitions
Status: in_force

42-6010. Retail business location municipal tax incentives; prohibition; penalty; exceptions; definitions

A. If at least sixty-five per cent of the land area within a city's or town's exterior boundaries is located within the exterior boundary of a metropolitan statistical area having a population of more than two million persons, the city or town shall not offer or provide a tax incentive to a business entity as an inducement or in exchange for locating or relocating a retail business facility in the city or town.

B. A city or town that violates this section is subject to a penalty equal to the amount of the incentive realized by the taxpayer, extended over a period of sixty months.  The department of revenue shall notify the state treasurer to withhold the amount of the penalty from monies otherwise payable to the city or town as provided by section 42-5029, subsection J.

C. The city or town shall report to the department of revenue the value of any tax incentive used as an inducement or in exchange for locating or relocating a retail business facility in the city or town. For the purposes of this subsection, the value includes all negotiated amounts, in any form and whether actual, realized or contingent, over the term of the incentive agreement.

D. This section does not apply with respect to:

1. Municipal services and benefits generally afforded by ordinance to all new businesses in the city or town, having no direct affect on municipal tax levies.

2. Tax incentives that are afforded to all existing retail business facilities in the city or town.

3. Tax incentives for locating retail business facilities in an area designated as a redevelopment project pursuant to title 36, chapter 12, article 3 where the average household income is less than the average city household income as determined by the United States census bureau.

4. Incentives consisting of reimbursement for public infrastructure dedicated to and accepted and controlled upon completion of the project by the city or town, county, state or a private utility where no other political subdivision provides such utility for transportation, water, sewer, electrical, drainage, the fair market value of real property necessary for the public infrastructure and other necessary public infrastructure.  This paragraph does not apply to parking lots, parking structures or parking facilities or other structures or amenities owned or controlled by a private entity.

5. Incentives that are offered for the purpose of preserving historical buildings and other structures.

6. Incentives that are offered for cleanup or other remediation activities at a brownfields site under title 49, chapter 2, article 1.1 or the comprehensive environmental response, compensation, and liability act of 1980 (P.L. 96-510, 94 Stat. 2767; 42 United States Code sections 9601 through 9657), commonly known as "superfund".

E. To qualify as exempt from the penalty, an incentive under subsection D of this section that is offered in exchange for expenses incurred by the business entity must be in the form of a reimbursement of the expenses and may not exceed or otherwise be disproportional to the actual cost incurred.

F. This section does not apply to tax incentives that were referred to a vote of the qualified electors of the city or town before July 1, 2007 and approved by the qualified electors of the city or town.

G. For the purposes of this section:

1. "Metropolitan statistical area" means a geographical area consisting of cities, towns and other populated areas defined for federal statistical and census purposes by the United States office of management and budget with technical assistance from the United States bureau of the census.

2. "Retail business facility" means a store, warehouse or other improvement to real estate where at least one-half of the business conducted on the premises consists of retail sales of tangible personal property to the ultimate consumer, measured by either the number of employees assigned to retail sales or the square footage of the facility used for retail sales. For the purposes of this paragraph, retail sales do not include:

(a) Sales of food and beverage for consumption on the premises of the facility.

(b) The distribution without charge of promotional products that display the company logo or trademark.

(c) Sales solely to company employees.

3. "Tax incentive" means any waiver, exemption, deduction, credit, rebate, discount, deferral or other abatement or reduction of the normal municipal tax liability of an individual taxpayer that otherwise applies to similar existing taxpayers and properties in the city or town, however denominated, computed or applied, and generally understood as an inducement for the taxpayer to locate a business facility or other operation in the city or town.
A.R.S. § 42-6109 — Arizona Code / Title 42 / Chapter 6 / Article 3 / Section 6109
42-6109 Jail facilities excise tax; maintenance of effort; definition
Status: in_force

42-6109. Jail facilities excise tax; maintenance of effort; definition

A. If approved by the qualified electors voting at a countywide general election, a county with a population of at least one million five hundred thousand persons shall levy and the department shall collect a transaction privilege tax, in addition to all other taxes, at rates of not more than 4.0 per cent of the transaction privilege tax rate prescribed by section 42-5010, subsection A applying to each person engaging or continuing in the county in a business taxed under chapter 5, article 1 of this title.

B. If a tax is levied under subsection A of this section, the county board of supervisors, by resolution, may levy and, if levied, the department shall collect a use tax on the use or consumption of electricity or natural gas by retail electric or natural gas customers in the county and subject to use tax pursuant to section 42-5155.  The use tax levied pursuant to this subsection shall be applied as a percentage of the use tax imposed by chapter 5, article 4 of this title equal to the percentage determined under subsection A of this section.

C. Taxes shall be levied under this section beginning January 1 or July 1, whichever date first occurs after approval by the voters, or county board of supervisors, as applicable, and may continue in effect until the amount of nine hundred million dollars of revenue is collected, as determined by the department of revenue, but in any event not more than nine years as adopted by resolution of the county board of supervisors before the election and as approved by the voters.  The board of supervisors may, by resolution, decrease or increase the rates of taxes during the term of the taxes, subject to the maximum rates prescribed by this section.

D. 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.  If the county that initially imposes the tax under this section is divided into two or more new counties during the term of the tax, each new county shall continue to impose the tax, but the state treasurer shall transmit the net revenues collected within both counties equally to each of the new counties.  The county treasurer shall segregate all the monies received under this section for use only for the purposes authorized by this section.  The county treasurer may disburse monies from the fund only to:

1. Finance construction of new adult and juvenile jail facilities.

2. Maintain and operate adult and juvenile jail facilities.

3. Fund the following for the purpose of reducing the expense of adult and juvenile jail facilities:

(a) Implementing an integrated criminal justice information system.

(b) Developing regional centers for courts not of record.

(c) Implementing differentiated case management for criminal cases in superior court.

(d) Consolidating criminal divisions of the superior court in the county to a common location.

(e) Expanding pretrial release supervision.

(f) Implementing electronic monitoring of preadjudicated defendants.

(g) Enhancing substance abuse evaluation and programming.

(h) Increasing drug court admissions to include preadjudicated defendants and expanding drug court jurisdiction.

(i) Using community based juvenile detention and postadjudication programs.

E. The county shall maintain its support of adult and juvenile jail facilities.  The county shall determine the amount the county spent for maintenance and operation of adult and juvenile jail facilities in the fiscal year immediately preceding the first fiscal year in which the tax is levied under this section.  The auditor general shall audit this amount and the audited amount is the base expenditure.  Any outstanding debt due from a city, this state or the United States for the county housing prisoners pursuant to section 31-121 shall be excluded from the base expenditure.  In the first year the tax is levied under this section the county shall pay an amount equal to the base expenditure adjusted by the percentage change in the assessed valuation of the taxable property in the county, determined for secondary property tax purposes, from the preceding year.  In each year the tax is imposed, the county shall pay an amount equal to the amount paid under this subsection in the preceding fiscal year, adjusted by the percentage change in the assessed valuation of the taxable property in the county, determined for secondary property tax purposes, from the preceding year.  The county treasurer shall transfer that amount, without further authorization, in twelve equal monthly installments from the county general fund for the uses prescribed in subsection D of this section.  For purposes of this subsection, "maintenance and operation" includes detention personnel compensation, employee related expenses, utility expenses of the facility, costs of food and care of prisoners, administrative support costs and costs of maintaining and repairing the facility and grounds.

F. For the purposes of this section, "jail facility" means a jail or other place of detention of persons charged with or convicted of a crime or of persons who are subject to the jurisdiction of the juvenile court.
A.R.S. § 42-3307 — Arizona Code / Title 42 / Chapter 3 / Article 7 / Section 3307
42-3307 Preemption by state
Status: in_force

42-3307. Preemption by state

This state preempts the area of Indian reservation tobacco taxation. A county, city, town or any other political subdivision of this state shall not levy such a tax.  Nothing in this article precludes an Indian tribe from imposing its own tobacco tax or a similar levy.
A.R.S. § 42-12108 — Arizona Code / Title 42 / Chapter 12 / Article 3 / Section 12108
42-12108 Reports
Status: in_force

42-12108. Reports

A. If requested by the state historic preservation officer, an owner of historic property shall make an annual report as to the continued qualification of the property for classification as historic property.

B. The state historic preservation officer may demand reports from owners of historic property as to the continued qualification of the property at any other time considered to be necessary.

C. If an owner fails to make a required report after ninety days' written notice by mail, return receipt requested, to make the report, the state historic preservation officer shall notify the assessor, and the assessor shall withdraw the property from historic classification and assess the penalties prescribed by section 42-12107.
A.R.S. § 42-2064 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2064
42-2064 Reimbursement of fees and other costs; definitions
Status: in_force

42-2064. Reimbursement of fees and other costs; definitions

A. A taxpayer who is a prevailing party may be reimbursed for reasonable fees and other costs related to an administrative proceeding that is brought by or against the department in connection with an assessment, determination, collection or refund of any tax listed in section 42-1101. For the purposes of this subsection, a taxpayer is considered to be a prevailing party only if both of the following are true:

1. The department's position was not substantially justified.

2. The taxpayer prevails as to the most significant issue or set of issues.

B. Reimbursement under this section may be denied if any of the following circumstances apply:

1. During the course of the proceeding the taxpayer unduly and unreasonably protracted the final resolution of the matter.

2. The reason that the taxpayer prevailed is due to an intervening change in the applicable law.

C. The taxpayer shall present an itemization of the reasonable fees and other costs to the taxpayer problem resolution officer within thirty days after the conclusion of the administrative proceedings. The taxpayer problem resolution officer shall determine the validity of the fees and other costs within thirty days after receiving the itemization. The taxpayer problem resolution officer's decision is considered the department's final decision or order and is subject to appeal to the state board under section 42-1253.

D. The department of revenue shall pay the fees and other costs awarded as provided in this section from any monies appropriated for such purpose. If the department of revenue does not pay the fees and other costs within thirty days after demand by a person who has received an award pursuant to this section, and if no further review or appeals of the award are pending, the person may file a claim for the fees and other costs with the department of administration, which shall pay the claim within thirty days, in the same manner as an uninsured property loss under title 41, chapter 3.1, article 1. If, at the time the department of revenue failed to pay the award, it had appropriated monies either designated or assignable for the purpose of paying such awards, the legislature shall reduce the department of revenue's operating appropriation for the following year by the amount of the award and appropriate the amount of the reduction to the department of administration, risk management division, as reimbursement for the loss.

E. Reimbursement to a taxpayer under this section shall not exceed seventy-five thousand dollars or actual monies spent, whichever is less. The reimbursable attorney or other representative fees shall not exceed three hundred fifty dollars per hour or actual monies spent, whichever is less, unless the state board of tax appeals determines that an increase in the cost of living or a special factor such as the limited availability of qualified attorneys for the proceeding involved justifies a higher fee.

F. For each calendar year beginning from and after December 31, 2015, the income dollar amounts for maximum awards made pursuant to subsection E of this section shall be adjusted by the attorney general according to the average annual change in the metropolitan phoenix consumer price index published by the United States bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts may not be revised below the amounts prescribed in the prior calendar year.

G. The department shall adopt administrative rules to implement this section.

H. Notwithstanding any provision of title 12, chapter 3, article 5, a taxpayer who is a prevailing party may only be reimbursed pursuant to this section.

I. For the purposes of this section:

1. "Administrative proceeding" means any review proceeding or appeal pursuant to section 42-1251 that is conducted under the authority of section 42-1003 and an appeal to the state board of tax appeals pursuant to section 42-1253.

2. "Reasonable fees and other costs" means fees and other costs that are based on prevailing market rates for the kind and quality of the furnished services, but not exceeding the amounts actually spent for expert witnesses, the cost of any study, analysis, report, test or project that is found to be necessary to prepare the party's case and necessary fees for attorneys or other representatives.
A.R.S. § 42-5004 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5004
42-5004 Department records
Status: in_force

42-5004. Department records

A. The department shall keep records and accounts showing separately the taxes collected under each of the classifications and amounts collected from businesses engaged in within each county as prescribed in this article and article 2 of this chapter.  Each month the department of revenue shall deliver a statement to the state treasurer and a duplicate statement to the director of the department of administration showing all collections made during the preceding month and setting forth the classifications and amounts collected from businesses engaged in within this state.

B. The department shall keep full and accurate records of all monies it receives, shall show how such monies were disbursed and shall preserve all returns filed with it as prescribed by section 42-1105.
A.R.S. § 42-18103 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18103
42-18103 Notice of delinquent taxes
Status: in_force

42-18103. Notice of delinquent taxes

On or before September 1 of each year the county treasurer shall send by mail to the last known address of each person or firm that owes delinquent taxes notice that there are delinquent taxes against the real property that is assessed in the taxpayer's name.
A.R.S. § 42-6004 — Arizona Code / Title 42 / Chapter 6 / Article 1 / Section 6004
42-6004 Exemption from municipal tax; definitions
Status: in_force

42-6004. Exemption from municipal tax; definitions

A. A city, town or special taxing district shall not levy a transaction privilege, sales, use or other similar tax on:

1. Exhibition events in this state sponsored, conducted or operated 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 state transaction privilege tax under section 42-5073.

2. Interstate telecommunications services, which include that portion of telecommunications services, such as subscriber line service, allocable by federal law to interstate telecommunications service.

3. Sales of warranty or service contracts.

4. Sales of motor vehicles to nonresidents of this state for use outside this state if either of the following applies:

(a) The motor vehicle dealer ships or delivers the motor vehicle to a destination outside this state.

(b) The vehicle, trailer or semitrailer has a gross vehicle weight rating of more than ten thousand pounds, is used or maintained to transport property in the furtherance of interstate commerce and otherwise meets the definition of commercial motor vehicle as defined in section 28-5201.

5. Interest on finance contracts.

6. Dealer documentation fees on the sales of motor vehicles.

7. Orthodontic devices dispensed by a dental professional who is licensed under title 32, chapter 11 to a patient as part of the practice of dentistry.

8. Sales of internet access services to the person's subscribers and customers.  For the purposes of this paragraph:

(a) "Internet" means the computer and telecommunications facilities that comprise the interconnected worldwide network of networks that employ the transmission control protocol or internet protocol, or any predecessor or successor protocol, to communicate information of all kinds by wire or radio.

(b) "Internet access" means a service that enables users to access content, information, electronic mail or other services over the internet. Internet access does not include telecommunication services provided by a common carrier.

9. The gross proceeds of sales or gross income retained by the Arizona exposition and state fair board from ride ticket sales at the annual Arizona state fair.

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

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

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

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

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

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

11. The gross proceeds of sales or gross income derived from a contract for the installation, assembly, repair or maintenance of machinery, equipment or other tangible personal property that is described in section 42-5061, 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 described in section 42-5061, 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 dissimilar nonpermanent connections to either real property or real property improvements.

12. The leasing or renting of certified ignition interlock devices installed pursuant to the requirements prescribed by section 28-1461. For the purposes of this paragraph, "certified ignition interlock device" has the same meaning prescribed in section 28-1301.

13. Computer data center equipment sold to the owner, operator or qualified colocation tenant of a computer data center that is certified by the Arizona commerce authority under section 41-1519 or an authorized agent of the owner, operator or qualified colocation tenant during the qualification period for use in the qualified computer data center. For the purposes of this paragraph, "computer data center", "computer data center equipment", "qualification period" and "qualified colocation tenant" have the same meanings prescribed in section 41-1519.

14. 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, except as specified in this paragraph. 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.  For the purposes of this paragraph:

(a) Each contract is independent of another 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 paragraph, 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.

(b) Any term not defined in this paragraph that is defined in section 42-5075 has the same meaning prescribed in section 42-5075.

(c) This paragraph does not apply to 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 even if the contract also includes vertical improvements.  If a city or town imposes a tax on contracts that are subject to procurement processes under those provisions, the city or town shall include in the request for proposals a notice to bidders when those projects are subject to the tax. This subdivision does not apply to contracts with:

(i) 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.

(ii) Any special taxing district not specified in item (i) of this subdivision if the district does not substantially engage in the modification, maintenance, repair, replacement or alteration of surface or subsurface improvements to land.

15. Monitoring services relating to an alarm system as defined in section 32-101.

16. Tangible personal property, job printing or publications sold to or purchased by, or tangible personal property leased, rented or licensed for use to or by, a qualifying health sciences educational institution as defined in section 42-5001.

17. The transfer of title or possession of coal back and forth between an owner or operator of a power plant and a person who is responsible for refining coal if both of the following apply:

(a) The transfer of title or possession of the coal is for the purpose of refining the coal.

(b) The title or possession of the coal is transferred back to the owner or operator of the power plant after completion of the coal refining process. For the purposes of this subdivision, "coal refining process" means the application of a coal additive system that aids the reduction of power plant emissions during the combustion of coal and the treatment of flue gas.

18. Tangible personal property incorporated or fabricated into a project described in paragraph 14 of this subsection, that is located within the exterior boundaries of an Indian reservation for which the owner, as defined in section 42-5075, of the project is an Indian tribe or an affiliated Indian.  For the purposes of this paragraph:

(a) "Affiliated Indian" means an individual Native American Indian who is duly registered on the tribal rolls of the Indian tribe for whose benefit the Indian reservation was established.

(b) "Indian reservation" means all lands that are within the limits of areas set aside by the United States for the exclusive use and occupancy of an Indian tribe by treaty, law or executive order and that are recognized as Indian reservations by the United States department of the interior.

(c) "Indian tribe" means any organized nation, tribe, band or community that is recognized as an Indian tribe by the United States department of the interior and includes any entity formed under the laws of that Indian tribe.

19. The charges for the leasing or renting of space to make attachments to utility poles as follows:

(a) By a person that is engaged in the business of providing or furnishing electrical services or telecommunication services or that is a cable operator.

(b) To a person that is engaged in the business of providing or furnishing electrical services or telecommunication services or that is a cable operator.

20. Until March 1, 2017, the gross proceeds of sales or gross income derived from entry fees paid by participants for events that consist of a run, walk, swim or bicycle ride or a similar event, or any combination of these events.

21. The gross proceeds of sales or gross income derived from entry fees paid by participants for events that are operated or conducted by nonprofit organizations that are exempt from taxation under section 501(c)(3) of the internal revenue code and of which no part of the organization's net earnings inures to the benefit of any private shareholder or individual, if the event consists of a run, walk, swim or bicycle ride or a similar event, or any combination of these events.

22. The gross proceeds of sales or gross income derived from sales of machinery and equipment used directly for energy storage for later electrical use.  For the purposes of this paragraph:

(a) "Electric utility scale" means a person that is engaged in a business activity described in section 42-5063, subsection A or such person's equipment or wholesale electricity suppliers.

(b) "Energy storage" means commercially available technology for electric utility scale that is capable of absorbing energy, storing energy for a period of time and thereafter dispatching the energy and that uses mechanical, chemical or thermal processes to store energy.

(c) "Machinery and equipment used directly" means all machinery and equipment that are used for electric energy storage from the point of receipt of such energy in order to facilitate storage of the electric energy to the point where the electric energy is released.

23. 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.

B. A city, town or other taxing jurisdiction shall not levy a transaction privilege, sales, use, franchise or other similar tax or fee, however denominated, on natural gas or liquefied petroleum gas used to propel a motor vehicle.

C. A city, town or other taxing jurisdiction shall not levy a transaction privilege, sales, gross receipts, use, franchise or other similar tax or fee, however denominated, on gross proceeds of sales or gross income derived from any of the following:

1. A motor carrier's use on the public highways in this state if the motor carrier is subject to a fee prescribed in title 28, chapter 16, article 4.

2. Leasing, renting or licensing a motor vehicle subject to and on which the fee has been paid under title 28, chapter 16, article 4.

3. The sale of a motor vehicle and any repair and replacement parts and tangible personal property becoming a part of such motor vehicle to a motor carrier who is subject to a fee prescribed in title 28, chapter 16, article 4 and who is engaged in the business of leasing, renting or licensing such property.

4. Incarcerating or detaining in a privately operated prison, jail or detention facility prisoners who are under the jurisdiction of the United States, this state or any other state or a political subdivision of this state or of any other state.

5. Transporting for hire persons, freight or property by light motor vehicles subject to a fee under title 28, chapter 15, article 4.

6. Any amount attributable to development fees that are incurred in relation to the construction, development or improvement of real property and paid by the taxpayer as defined in the model city tax code or by a contractor providing services to the taxpayer.  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 taxpayer or by a contractor providing services to the taxpayer 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.

7. Any amount attributable to fees collected by transportation network companies issued a permit pursuant to section 28-9552.

8. Transporting for hire persons by transportation network company drivers on transactions involving transportation network services as defined in section 28-9551.

9. Transporting for hire persons by vehicle for hire companies that are issued permits pursuant to section 28-9503.

10. Transporting for hire persons by vehicle for hire drivers on transactions involving vehicle for hire services as defined in section 28-9501.

D. A city, town or other taxing jurisdiction shall not levy a transaction privilege, sales, use, franchise or other similar tax or fee, however denominated, in excess of one-tenth of one percent of the value of the entire product mined, smelted, extracted, refined, produced or prepared for sale, profit or commercial use, on persons engaged in the business of mineral processing, except to the extent that the tax is computed on the gross proceeds or gross income from sales at retail.

E. In computing the tax base, any city, town or other taxing jurisdiction shall not include in the gross proceeds of sales or gross income:

1. A manufacturer's cash rebate on the sales price of a motor vehicle if the buyer assigns the buyer's right in the rebate to the retailer.

2. The waste tire disposal fee imposed pursuant to section 44-1302.

F. A city or town shall not levy a use tax on the storage, use or consumption of tangible personal property in the city or town by a school district or charter school.

G. A city, town or taxing jurisdiction shall not levy a transaction privilege, sales, gross receipts, use, franchise or other similar tax or fee, however denominated, on gross proceeds of sales or gross income derived from over-the-top services. For the purposes of this subsection, "over-the-top services" means audio or video programming services that are received by the purchaser by means of an internet connection, regardless of the technology used, that include linear or live programming and that are generally considered comparable to programming provided by a radio or television broadcast station and includes related on-demand programming that is provided at no additional charge, regardless of whether the services are provided independently or packaged with other audio or video programming.

H. From and after December 31, 2024, a city, town or other taxing jurisdiction may not levy a transaction privilege, sales, gross receipts, use, franchise or other similar tax or fee, however denominated, on the business of renting or leasing real property for residential purposes. This subsection:

1. Does not apply to health care facilities, long-term care facilities or hotel, motel or other transient lodging businesses.

2. Applies regardless of whether the city or town has adopted the model city tax code pursuant to article 2 of this chapter.

I. For the purposes of this section:

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

2. "Electrical services" means transmitting or distributing electricity, electric lights, current or power over lines, wires or cables.

3. "Telecommunication services" means transmitting or relaying sound, visual image, data, information, images or material over lines, wires or cables by radio signal, light beam, telephone, telegraph or other electromagnetic means.

4. "Utility pole" means any wooden, metal or other pole used for utility purposes and the pole's appurtenances that are attached or authorized for attachment by the person controlling the pole.
A.R.S. § 42-17308 — Arizona Code / Title 42 / Chapter 17 / Article 7 / Section 17308
42-17308 Lien of deferred taxes and accrued interest
Status: in_force

42-17308. Lien of deferred taxes and accrued interest

Deferred taxes and accrued interest under this article are a lien against the property. The lien:

1. Attaches on the date the certificate of deferral is recorded.

2. Has priority over:

(a) Any mortgage, reverse mortgage, deed of trust or other real property security interest that is recorded before the certificate of deferral is recorded.

(b) Any lien attaching after the certificate of deferral is recorded.

3. May not be enforced except as provided in this article.
A.R.S. § 42-19151 — Arizona Code / Title 42 / Chapter 19 / Article 4 / Section 19151
42-19151 Definition of mobile home
Status: in_force

42-19151. Definition of mobile home

In this article, unless the context otherwise requires, "mobile home" means a structure that is transportable in one or more sections including the plumbing, heating, air conditioning and electrical systems that are contained in the structure and that, when erected on site, is either of the following:

1. More than eight feet in body width, thirty-two feet or more in body length and built on a permanent chassis.

2. Regardless of the size, used as a single family dwelling or for commercial purposes with or without a permanent foundation.
A.R.S. § 42-2074 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2074
42-2074 Equitable relief from joint and several liability
Status: in_force

42-2074. Equitable relief from joint and several liability

A. The director may relieve an individual from joint and several liability under the following circumstances:

1. Taking into account all of the facts and circumstances, it is inequitable to hold the individual liable for all or part of any unpaid tax or any deficiency.

2. Relief is not available to the individual under section 42-2201 or 42-2202.

B. The director's decision is considered to be the department's final decision or order and is subject to appeal to the state board of tax appeals under section 42-1253.
A.R.S. § 42-13101 — Arizona Code / Title 42 / Chapter 13 / Article 3 / Section 13101
42-13101 Valuation of agricultural land
Status: in_force

42-13101. Valuation of agricultural land

A. Land that is used for agricultural purposes shall be valued using only the income approach to value without any allowance for urban or market influences.

B. The income of agricultural property shall be determined using the capitalized average annual net cash rental of the property. For purposes of this subsection the average annual net cash rental of the property:

1. Is the average of the annual net cash rental, excluding real estate and sales taxes, determined through an analysis of typical arm's length rental agreements collected for a five year period before the year for which the valuation is being determined for comparable agricultural land used for agricultural purposes and located in the vicinity, if practicable, of the property being valued.

2. Shall be capitalized at a rate 1.5 percentage points higher than the average long-term annual effective interest rate for all new farm credit services loans for the five year period before the year for which the valuation is being determined.
A.R.S. § 42-2001 — Arizona Code / Title 42 / Chapter 2 / Article 1 / Section 2001
42-2001 Definitions
Status: in_force

42-2001. Definitions

In this article, unless the context otherwise requires:

1. "Confidential information":

(a) Includes the following information whether it concerns individual taxpayers or is aggregate information for specifically identified taxpayers:

(i) Returns and reports filed with the department for income tax, withholding tax, transaction privilege tax, luxury tax, use tax, property tax, excise tax on marijuana and severance tax.

(ii) Applications to receive a license or registration for transaction privilege tax, luxury tax, use tax, excise tax on marijuana and withholding tax.

(iii) Information discovered concerning taxes and receipts by the department, whether or not by compulsory process.

(iv) Return information obtained from the United States internal revenue service and United States bureau of alcohol, tobacco and firearms.

(v) Information supplied at the special request of the department by a taxpayer that the taxpayer requests to be held in confidence.

(vi) Guidelines, standards or procedures that are established by the department for, or other information relating to, selecting returns or taxpayers for examination or settling or compromising any tax liability.

(vii) A taxpayer's identity, the nature, source or amount of the taxpayer's income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, tax withheld, deficiencies, overassessments or tax payments, whether the taxpayer's return was, is being or will be examined or subject to investigation, collection or processing or any other data received by, recorded by, prepared by, furnished to or collected by the department with respect to a return or with respect to the termination, or possible existence, of liability of any person for any tax, penalty or interest imposed pursuant to this title or title 43.

(viii) Information supplied by an employee to an employer regarding the employee's election to have the employee's withholding tax reduced for the purposes of contributions to qualifying charitable organizations, qualified school tuition organizations or public schools pursuant to section 43-401, subsection G.

(b) Does not include information that is otherwise a public record.

2. "Report" includes a notice of insurance payments, a request for a release of a bank account and an inventory of a safe deposit box.

3. "Return" includes any form prescribed by the department and any supporting schedules, attachments and lists.

4. "Tax administration" includes assessment, collection, investigation, litigation, statistical gathering functions, enforcement, policy making functions or management of those functions of the tax revenue laws of this state.

5. "Tax official" means a nonelected employee or the nonelected employee's designee or agent who is responsible for tax administration.

6. "Taxpayer", with respect to a joint return, means either party.
A.R.S. § 42-14052 — Arizona Code / Title 42 / Chapter 14 / Article 2 / Section 14052
42-14052 Annual report for determining valuation; failure to file; penalty; forfeiture of appeal rights
Status: in_force

42-14052. Annual report for determining valuation; failure to file; penalty; forfeiture of appeal rights

A. On or before April 1 of each year each company that is valued pursuant to this article shall file a report with the department, under oath, stating the information that the department requires to enable it to make a valuation of the company.

B. On written request and for good cause shown, the director may extend the time for filing the report required by this section.

C. If a company fails to file the report on or before April 1 of the valuation year, or the extended due date if an extension is granted, the department shall:

1. Estimate the value of the property based on one hundred five per cent of the preceding year's full cash value or on any information that is available to the department.

2. Also assess a penalty in the amount of the lesser of:

(a) One-half of one per cent of the value that is estimated by the department.

(b) One hundred dollars per day for each day the company fails to file the report beyond the due date.

D. If the report is not filed by May 20 of the valuation year, the company forfeits its right to appeal the valuation and classification pursuant to section 42-14005.
A.R.S. § 42-5029 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5029
42-5029 Remission and distribution of monies; withholding; definition
Status: in_force

42-5029. Remission and distribution of monies; withholding; definition

(Caution:  1998 Prop. 105 applies)

A. The department shall deposit, pursuant to sections 35-146 and 35-147, all revenues collected under this article and articles 4, 5 and 8 of this chapter pursuant to section 42-1116, separately accounting for:

1. Payments of estimated tax under section 42-5014, subsection D.

2. Revenues collected pursuant to section 42-5070.

3. Revenues collected under this article and article 5 of this chapter from and after June 30, 2000 from sources located on Indian reservations in this state.

4. Revenues collected pursuant to section 42-5010, subsection G and section 42-5155, subsection D.

5. Revenues collected pursuant to section 42-5010.01 and section 42-5155, subsection E.

6. Revenues collected pursuant to section 42-5061 from a remote seller.

B. The department shall credit payments of estimated tax to an estimated tax clearing account and each month shall transfer all monies in the estimated tax clearing account to a fund designated as the transaction privilege and severance tax clearing account.  The department shall credit all other payments to the transaction privilege and severance tax clearing account, separately accounting for the monies designated as distribution base under sections 42-5010, 42-5164 and 42-5205. Each month the department shall report to the state treasurer the amount of monies collected pursuant to this article and articles 4, 5 and 8 of this chapter.

C. On notification by the department, the state treasurer shall distribute the monies deposited in the transaction privilege and severance tax clearing account in the manner prescribed by this section and by sections 42-5164 and 42-5205, after deducting warrants drawn against the account pursuant to sections 42-1118 and 42-1254.

D. Of the monies designated as distribution base, the department shall:

1. Pay twenty-five percent to the various incorporated municipalities in this state in proportion to their population to be used by the municipalities for any municipal purpose, except a municipality shall use monies paid from revenues separately accounted for pursuant to subsection A, paragraph 6 of this section and paid pursuant to this paragraph for public safety before any other municipal purpose.

2. Pay 38.08 percent to the counties in this state by averaging the following proportions:

(a) The proportion that the population of each county bears to the total state population.

(b) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42-5164, subsection B and section 42-5205, subsection B bear to the total distribution base monies collected under this article, section 42-5164, subsection B and section 42-5205, subsection B throughout the state for the calendar month.

3. Pay an additional 2.43 percent to the counties in this state as follows:

(a) Average the following proportions:

(i) The proportion that the assessed valuation used to determine secondary property taxes of each county, after deducting that part of the assessed valuation that is exempt from taxation at the beginning of the month for which the amount is to be paid, bears to the total assessed valuations used to determine secondary property taxes of all the counties after deducting that portion of the assessed valuations that is exempt from taxation at the beginning of the month for which the amount is to be paid.  Property of a city or town that is not within or contiguous to the municipal corporate boundaries and from which water is or may be withdrawn or diverted and transported for use on other property is considered to be taxable property in the county for purposes of determining assessed valuation in the county under this item.

(ii) The proportion that the distribution base monies collected during the calendar month in each county under this article, section 42-5164, subsection B and section 42-5205, subsection B bear to the total distribution base monies collected under this article, section 42-5164, subsection B and section 42-5205, subsection B throughout this state for the calendar month.

(b) If the proportion computed under subdivision (a) of this paragraph for any county is greater than the proportion computed under paragraph 2 of this subsection, the department shall compute the difference between the amount distributed to that county under paragraph 2 of this subsection and the amount that would have been distributed under paragraph 2 of this subsection using the proportion computed under subdivision (a) of this paragraph and shall pay that difference to the county from the amount available for distribution under this paragraph. Any monies remaining after all payments under this subdivision shall be distributed among the counties according to the proportions computed under paragraph 2 of this subsection.

4. After any distributions required by sections 42-5030, 42-5030.01, 42-5031, 42-5032, 42-5032.01, 42-5032.02 and 42-5032.03 and after making any transfer to the water quality assurance revolving fund as required by section 49-282, subsection B, credit the remainder of the monies designated as distribution base to the state general fund.  From this amount the legislature shall annually appropriate to:

(a) The department of revenue, sufficient monies to administer and enforce this article and articles 5 and 8 of this chapter.

(b) The department of economic security, monies to be used for the purposes stated in title 46, chapter 1.

(c) The firearms safety and ranges fund established by section 17-273, $50,000 derived from the taxes collected from the retail classification pursuant to section 42-5061 for the current fiscal year.

E. If approved by the qualified electors voting at a statewide general election, all monies collected pursuant to section 42-5010, subsection G and section 42-5155, subsection D shall be distributed each fiscal year pursuant to this subsection. The monies distributed pursuant to this subsection are in addition to any other appropriation, transfer or other allocation of public or private monies from any other source and shall not supplant, replace or cause a reduction in other school district, charter school, university or community college funding sources. The monies shall be distributed as follows:

1. If there are outstanding state school facilities revenue bonds pursuant to title 15, chapter 16, article 7, each month one-twelfth of the amount that is necessary to pay the fiscal year's debt service on outstanding state school improvement revenue bonds for the current fiscal year shall be transferred each month to the school improvement revenue bond debt service fund established by section 15-2084. The total amount of bonds for which these monies may be allocated for the payment of debt service shall not exceed a principal amount of eight hundred million dollars exclusive of refunding bonds and other refinancing obligations.

2. After any transfer of monies pursuant to paragraph 1 of this subsection, twelve per cent of the remaining monies collected during the preceding month shall be transferred to the technology and research initiative fund established by section 15-1648 to be distributed among the universities for the purpose of investment in technology and research-based initiatives.

3. After the transfer of monies pursuant to paragraph 1 of this subsection, three per cent of the remaining monies collected during the preceding month shall be transferred to the workforce development account established in each community college district pursuant to section 15-1472 for the purpose of investment in workforce development programs.

4. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth of the amount a community college that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation would receive pursuant to section 15-1472, subsection D, paragraph 2 if it were a community college district shall be distributed each month to the treasurer or other designated depository of a qualifying Indian tribe.  Monies distributed pursuant to this paragraph are for the exclusive purpose of providing support to one or more community colleges owned, operated or chartered by a qualifying Indian tribe and shall be used in a manner consistent with section 15-1472, subsection B. For the purposes of this paragraph, "qualifying Indian tribe" has the same meaning as defined in section 42-5031.01, subsection D.

5. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth of the following amounts shall be transferred each month to the department of education for the increased cost of basic state aid under section 15-971 due to added school days and associated teacher salary increases enacted in 2000:

(a) In fiscal year 2001-2002, $15,305,900.

(b) In fiscal year 2002-2003, $31,530,100.

(c) In fiscal year 2003-2004, $48,727,700.

(d) In fiscal year 2004-2005, $66,957,200.

(e) In fiscal year 2005-2006 and each fiscal year thereafter, $86,280,500.

6. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, seven million eight hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments, to the department of education to be used for school safety as provided in section 15-154 and two hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments to the department of education to be used for the character education matching grant program as provided in section 15-154.01.

7. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, no more than seven million dollars may be appropriated by the legislature each fiscal year to the department of education to be used for accountability purposes as described in section 15-241 and title 15, chapter 9, article 8.

8. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, one million five hundred thousand dollars is appropriated each fiscal year, to be paid in monthly installments, to the failing schools tutoring fund established by section 15-241.

9. After transferring monies pursuant to paragraphs 1, 2 and 3 of this subsection, twenty-five million dollars shall be transferred each fiscal year to the state general fund to reimburse the general fund for the cost of the income tax credit allowed by section 43-1072.01.

10. After the payment of monies pursuant to paragraphs 1 through 9 of this subsection, the remaining monies collected during the preceding month shall be transferred to the classroom site fund established by section 15-977. The monies shall be allocated as follows in the manner prescribed by section 15-977:

(a) Forty per cent shall be allocated for teacher compensation based on performance.

(b) Twenty per cent shall be allocated for increases in teacher base compensation and employee related expenses.

(c) Forty per cent shall be allocated for maintenance and operation purposes.

F. The department shall credit the remainder of the monies in the transaction privilege and severance tax clearing account to the state general fund, subject to any distribution required by section 42-5030.01.

G. Notwithstanding subsection D of this section, if a court of competent jurisdiction finally determines that tax monies distributed under this section were illegally collected under this article or articles 5 and 8 of this chapter and orders the monies to be refunded to the taxpayer, the department shall compute the amount of such monies that was distributed to each city, town and county under this section. Each city's, town's and county's proportionate share of the costs shall be based on the amount of the original tax payment each municipality and county received. Each month the state treasurer shall reduce the amount otherwise distributable to the city, town and county under this section by 1/36 of the total amount to be recovered from the city, town or county until the total amount has been recovered, but the monthly reduction for any city, town or county shall not exceed ten percent of the full monthly distribution to that entity. The reduction shall begin for the first calendar month after the final disposition of the case and shall continue until the total amount, including interest and costs, has been recovered.

H. On receiving a certificate of default from the greater Arizona development authority pursuant to section 41-2257 or 41-2258 and to the extent not otherwise expressly prohibited by law, the state treasurer shall withhold from the next succeeding distribution of monies pursuant to this section due to the defaulting political subdivision the amount specified in the certificate of default and immediately deposit the amount withheld in the greater Arizona development authority revolving fund. The state treasurer shall continue to withhold and deposit the monies until the greater Arizona development authority certifies to the state treasurer that the default has been cured. In no event may the state treasurer withhold any amount that the defaulting political subdivision certifies to the state treasurer and the authority as being necessary to make any required deposits then due for the payment of principal and interest on bonds of the political subdivision that were issued before the date of the loan repayment agreement or bonds and that have been secured by a pledge of distributions made pursuant to this section.

I. Except as provided by sections 42-5033 and 42-5033.01, the population of a county, city or town as determined by the most recent United States decennial census plus any revisions to the decennial census certified by the United States bureau of the census shall be used as the basis for apportioning monies pursuant to subsection D of this section.

J. Except as otherwise provided by this subsection, on notice from the department of revenue pursuant to section 42-6010, subsection B, the state treasurer shall withhold from the distribution of monies pursuant to this section to the affected city or town the amount of the penalty for business location municipal tax incentives provided by the city or town to a business entity that locates a retail business facility in the city or town. The state treasurer shall continue to withhold monies pursuant to this subsection until the entire amount of the penalty has been withheld. The state treasurer shall credit any monies withheld pursuant to this subsection to the state general fund as provided by subsection D, paragraph 4 of this section. The state treasurer shall not withhold any amount that the city or town certifies to the department of revenue and the state treasurer as being necessary to make any required deposits or payments for debt service on bonds or other long-term obligations of the city or town that were issued or incurred before the location incentives provided by the city or town.

K. On notice from the auditor general pursuant to section 9-626, subsection D, the state treasurer shall withhold from the distribution of monies pursuant to this section to the affected city the amount computed pursuant to section 9-626, subsection D. The state treasurer shall continue to withhold monies pursuant to this subsection until the entire amount specified in the notice has been withheld. The state treasurer shall credit any monies withheld pursuant to this subsection to the state general fund as provided by subsection D, paragraph 4 of this section.

L. Except as otherwise provided by this subsection, on notice from the attorney general pursuant to section 41-194.01, subsection B, paragraph 1 that an ordinance, regulation, order or other official action adopted or taken by the governing body of a county, city or town violates state law or the Constitution of Arizona, the state treasurer shall withhold the distribution of monies pursuant to this section to the affected county, city or town and shall continue to withhold monies pursuant to this subsection until the attorney general certifies to the state treasurer that the violation has been resolved. The state treasurer shall redistribute the monies withheld pursuant to this subsection among all other counties, cities and towns in proportion to their population as provided by subsection D of this section. The state treasurer shall not withhold any amount that the county, city or town certifies to the attorney general and the state treasurer as being necessary to make any required deposits or payments for debt service on bonds or other long-term obligations of the county, city or town that were issued or incurred before committing the violation.

M. For the purposes of this section, "community college district" means a community college district that is established pursuant to sections 15-1402 and 15-1403 and that is a political subdivision of this state and, unless otherwise specified, includes a community college tuition financing district established pursuant to section 15-1409.
A.R.S. § 42-6107 — Arizona Code / Title 42 / Chapter 6 / Article 3 / Section 6107
42-6107 County transportation excise tax for roads
Status: in_force

42-6107. County transportation excise tax for roads

A. If a majority of the qualified electors voting at a countywide special election, or a majority of the qualified electors voting on the ballot proposition at a general election, approves the transportation excise tax, the county shall levy and the department shall collect a tax:

1. At a rate of not more than ten per cent of the transaction privilege tax rate as prescribed by section 42-5010, subsection A applying, as of January 1, 1990, to each person engaging or continuing in the county in a business taxed under chapter 5, article 1 of this title.

2. At a rate of not more than ten per cent of the rate prescribed by section 42-5352, subsection A.

3. On the use or consumption of electricity or natural gas by retail electric or natural gas customers in the county who are subject to use tax under section 42-5155, at a rate equal to the transaction privilege tax rate under paragraph 1 applying to persons engaging or continuing in the county in the utilities transaction privilege tax classification.  If a majority of the qualified electors in the county approved the transportation excise tax under this section before 1998, a tax under this paragraph may be approved by resolution adopted by a majority of the board of supervisors.

B. The net revenues collected under this section within a county shall be deposited in the county's regional area road fund pursuant to title 28, chapter 17, article 3.

C. The tax shall be levied under this section beginning January 1 or July 1, whichever date occurs first after approval by the voters, and may be in effect for a period of not more than twenty years.
A.R.S. § 42-3454 — Arizona Code / Title 42 / Chapter 3 / Article 11 / Section 3454
42-3454 Transport of unstamped cigarettes and untaxed roll-your-own tobacco prohibited; exceptions
Status: in_force

42-3454. Transport of unstamped cigarettes and untaxed roll-your-own tobacco prohibited; exceptions

A. A person may not hold, store or transport unstamped cigarettes or untaxed roll-your-own tobacco for sale or distribution in this state in any vehicle pursuant to section 36-798.06.

B. This section does not apply to either of the following:

1. A vehicle that is owned, operated or contracted by a person who holds a valid license issued under section 42-3401 and is transporting unstamped cigarettes or untaxed roll-your-own tobacco from one to another of the licensee's places of business listed on its application.

2. A vehicle that is transporting unstamped cigarettes or untaxed roll-your-own tobacco to a licensed distributor as part of a lawful sale or in interstate commerce to a person lawfully operating as a manufacturer, distributor or retailer of cigarettes or roll-your-own tobacco.
A.R.S. § 42-11117 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11117
42-11117 Exemption for property of volunteer fire departments
Status: in_force

42-11117. Exemption for property of volunteer fire departments

The property of a volunteer fire department that is recognized under section 501 of the internal revenue code is exempt from taxation if the property is used exclusively for fire suppression and prevention activities and is neither used nor occupied by or for the benefit of any person.
A.R.S. § 42-5354 — Arizona Code / Title 42 / Chapter 5 / Article 8 / Section 5354
42-5354 Exemption
Status: in_force

42-5354. Exemption

The tax levied by this article does not apply to jet fuel which is sold in this state to commercial airlines and used on flights which originate in this state and whose first outbound destination is outside of the United States.
A.R.S. § 42-14305 — Arizona Code / Title 42 / Chapter 14 / Article 7 / Section 14305
42-14305 Determination of valuation
Status: in_force

42-14305. Determination of valuation

A. On or before June 15 of each year, the department shall determine the full cash value of the company's property in this state whether it is used in intrastate or interstate business. That value constitutes the full cash value of the property of the private car company in this state for that year.

B. The valuation required by this section is the value determined as of January 1 of the valuation year.

C. The department shall immediately transmit the valuation to the private car company by first class mail or by e-mail.
A.R.S. § 42-5106 — Arizona Code / Title 42 / Chapter 5 / Article 3 / Section 5106
42-5106 Rules
Status: in_force

42-5106. Rules

A. The department shall adopt rules defining food consistent with section 42-5101 and this section.

B. The department shall include as food:

1. Returnable containers for which a deposit is collected.

2. Ice and dry ice used in packing, shipping or transporting food.

3. Seeds and plants to grow food for personal consumption.

C. The department shall not include food for consumption on the premises, alcoholic beverages, tobacco, medicines or dietary supplements, such as vitamins and protein supplements, as food, unless the item is otherwise deemed to be food under this section.

D. Notwithstanding section 42-5101, any ready-to-drink, nonalcoholic beverage that is contained in a closed or sealed bottle, can or carton, that is intended for human consumption and that is intended for home consumption is deemed to be food.

E. The department shall adopt rules that, other than for those items specifically included or excluded by subsections B, C and D of this section, define food to be those items that are intended for human consumption and that are intended for home consumption. In adopting these rules, the department shall give strong consideration to those specific items that are then eligible for purchase with supplemental nutrition assistance program benefits so as to effectuate the intent of the legislature as specified in this article.
A.R.S. § 42-12006 — Arizona Code / Title 42 / Chapter 12 / Article 1 / Section 12006
42-12006 Class six property
Status: in_force

42-12006. Class six property

For the purposes of taxation, class six is established consisting of:

1. Noncommercial historic property as defined in section 42-12101 and valued at full cash value.

2. Real and personal property that is located within the area of a foreign trade zone or subzone established under 19 United States Code sections 81a through 81u and title 44, chapter 18, that is activated for foreign trade zone use by the district director of the United States customs service pursuant to 19 Code of Federal Regulations section 146.6 and that is valued at full cash value.  Property that is classified under this paragraph shall not thereafter be classified under paragraph 6 of this section.

3. Real and personal property and improvements that are located in a military reuse zone that is established under chapter 1, article 7 of this title and that is devoted to providing aviation or aerospace services or to manufacturing, assembling or fabricating aviation or aerospace products, valued at full cash value and subject to the following terms and conditions:

(a) Property may not be classified under this paragraph for more than five tax years.

(b) Any new addition or improvement to property already classified under this paragraph qualifies separately for classification under this paragraph for not more than five tax years.

(c) If a military reuse zone is terminated, the property in that zone that was previously classified under this paragraph shall be reclassified as prescribed by this article.

(d) Property that is classified under this paragraph shall not thereafter be classified under paragraph 6 of this section.

4. Real and personal property and improvements or a portion of such property comprising an environmental technology manufacturing, producing or processing facility that qualified under section 41-1514.02, valued at full cash value and subject to the following terms and conditions:

(a) Property shall be classified under this paragraph for twenty tax years from the date placed in service.

(b) Any addition or improvement to property already classified under this paragraph qualifies separately for classification under this subdivision for an additional twenty tax years from the date placed in service.

(c) After revocation of certification under section 41-1514.02, property that was previously classified under this paragraph shall be reclassified as prescribed by this article.

(d) Property that is classified under this paragraph shall not thereafter be classified under paragraph 6 of this section.

5. That portion of real and personal property that is used on or after January 1, 1999 specifically and solely for remediation of the environment by an action that has been determined to be reasonable and necessary to respond to the release or threatened release of a hazardous substance by the department of environmental quality pursuant to section 49-282.06 or pursuant to its corrective action authority under rules adopted pursuant to section 49-922, subsection B, paragraph 4 or by the United States environmental protection agency pursuant to the national contingency plan (40 Code of Federal Regulations part 300) and that is valued at full cash value.  Property that is not being used specifically and solely for the remediation objectives described in this paragraph shall not be classified under this paragraph. For the purposes of this paragraph, "remediation of the environment" means one or more of the following actions:

(a) Monitoring, assessing or evaluating the release or threatened release.

(b) Excavating, removing, transporting, treating and disposing of contaminated soil.

(c) Pumping and treating contaminated water.

(d) Treating, containing or removing contaminants in groundwater or soil.

6. Real and personal property and improvements constructed or installed from and after December 31, 2004 through December 31, 2024 and owned by a qualified business under section 41-1516 and used solely for the purpose of harvesting, transporting or processing qualifying forest products removed from qualifying projects as defined in section 41-1516. The classification under this paragraph is subject to the following terms and conditions:

(a) Property may be initially classified under this paragraph only in valuation years 2005 through 2024.

(b) Property may not be classified under this paragraph for more than five years.

(c) Any new addition or improvement, constructed or installed from and after December 31, 2004 through December 31, 2024, to property already classified under this paragraph qualifies separately for classification and assessment under this paragraph for not more than five years.

(d) Property that is classified under this paragraph shall not thereafter be classified under paragraph 2, 3 or 4 of this section.

7. Real and personal property and improvements to the property that are used specifically and solely to manufacture from and after December 31, 2006 through December 31, 2023 biodiesel fuel that is one hundred percent biodiesel and its by-products or motor vehicle biofuel and its by-products and that are valued at full cash value. This paragraph applies only to the portion of property that is used specifically for manufacturing and processing one hundred percent biodiesel fuel, or its related by-products, or motor vehicle biofuel, or its related by-products, from raw feedstock obtained from off-site sources, including necessary on-site storage facilities that are intrinsically associated with the manufacturing process. Any other commercial or industrial use disqualifies the entire property from classification under this paragraph. For the purposes of this paragraph, "motor vehicle biofuel" means a solid, liquid or gaseous fuel that is derived from biological material such as plant or animal matter, excluding organic material that has been transformed by geological processes into substances such as coal or petroleum or derivatives thereof, and that:

(a) Contains fuel additives in compliance with federal and state law.

(b) Is manufactured exclusively for use in a motor vehicle.

8. Real and personal property and improvements that are used for renewable energy manufacturing or headquarters operations as provided by section 42-12057.  This paragraph applies only to property that is used in manufacturing and headquarters operations of renewable energy companies, including necessary on-site research and development, testing and storage facilities that are associated with the manufacturing process.  Up to ten percent of the aggregate full cash value of the property may be derived from uses that are ancillary to and intrinsically associated with the manufacturing process or headquarters operation. Any additional ancillary property is not qualified for classification under this paragraph. No new properties may be classified pursuant to this paragraph from and after December 31, 2014. Property that is classified under this paragraph shall not thereafter be classified under any other paragraph of this section.
A.R.S. § 42-12151 — Arizona Code / Title 42 / Chapter 12 / Article 4 / Section 12151
42-12151 Definition of agricultural real property
Status: in_force

42-12151. Definition of agricultural real property

In this article, unless the context otherwise requires, "agricultural real property" means real property that is one or more of the following:

1. Cropland in the aggregate of at least twenty gross acres.

2. An aggregate ten or more gross acres of permanent crops.

3. Grazing land with a minimum carrying capacity of forty animal units and containing an economically feasible number of animal units.

4. Land and improvements devoted to commercial breeding, raising, boarding or training equine, as defined in section 3-1201 or equine rescue facilities registered with the department of agriculture pursuant to section 3-1350.

5. Land and improvements devoted to high density use for producing commodities.

6. Land and improvements devoted to use in processing cotton necessary for marketing.

7. Land and improvements devoted to use in processing wine grapes for marketing.

8. Land and improvements devoted to use in processing citrus for marketing.

9. Land and improvements devoted to use as fruit or vegetable commodity packing plants that do not cut or otherwise physically alter the produce.

10. Land and improvements owned by a dairy cooperative devoted to high density use in producing, transporting, receiving, processing, storing, marketing and selling milk and manufactured milk products without the presence of any animal units on the land.

11. Land of at least five acres and improvements devoted to algaculture.  For the purposes of this paragraph "algaculture" means the controlled propagation, growth and harvest of algae.

12. Land and improvements devoted to agritourism as defined in section 3-111.
A.R.S. § 42-14201 — Arizona Code / Title 42 / Chapter 14 / Article 5 / Section 14201
42-14201 Annual determination of valuation
Status: in_force

42-14201. Annual determination of valuation

The department shall annually determine, in the manner prescribed by this article, the valuation of pipelines that operate in this state.
A.R.S. § 42-18263 — Arizona Code / Title 42 / Chapter 18 / Article 6.1 / Section 18263
42-18263 Title search
Status: in_force

42-18263. Title search

Before preparing a treasurer's deed under this article, the county treasurer shall cause a limited title search to be made that is sufficient to identify all parties who have a legal or equitable interest in the property recorded with the county recorder.
A.R.S. § 42-5030.01 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5030.01
42-5030.01 Distribution of revenues for school facilities
Status: in_force

42-5030.01. Distribution of revenues for school facilities

From and after June 30, 1999, if there are outstanding state school facilities revenue bonds pursuant to title 41, chapter 56, article 6, and if the amount of monies available under section 37-521, subsection B, paragraph 1 is insufficient to pay the debt service due on the outstanding bonds in that fiscal year, the state treasurer shall transfer to the state school facilities revenue bond debt service fund established pursuant to section 41-5754 the amount that is necessary to pay the debt service due in that fiscal year on the outstanding bonds from state general fund revenues that were collected pursuant to this chapter.
A.R.S. § 42-3301 — Arizona Code / Title 42 / Chapter 3 / Article 7 / Section 3301
42-3301 Definitions
Status: in_force

42-3301. Definitions

In this article, unless the context otherwise requires:

1. "Indian" means any person who is duly registered on the tribal rolls of an Indian tribe that occupies an Indian reservation.

2. "Indian reservation" means all lands that are held in trust by the United States within the limits of an area that is set aside by the United States for the exclusive use and occupancy of Indian tribes by treaty, statute or executive order and that is recognized as an Indian reservation by the United States department of the interior.

3. "Indian tribe" means any organized Indian nation, tribe, band or community that is recognized as an Indian tribe by the United States department of the interior.

4. "Luxury, sales, transaction privilege or similar tax" means an excise tax levied exclusively on tobacco products.
A.R.S. § 42-15057 — Arizona Code / Title 42 / Chapter 15 / Article 2 / Section 15057
42-15057 Information from political subdivisions
Status: in_force

42-15057. Information from political subdivisions

Each city, town, county or other governmental entity that requires that a building permit be issued to construct or add to residential or commercial buildings shall notify the county assessor in writing:

1. Of the parcel number for which the permit is issued at the time the permit is issued.

2. That the improvements are approved for their intended use at the time the building department makes the final inspection of the improvement.
A.R.S. § 42-5029.02 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5029.02
42-5029.02 Distribution of revenues for education; definitions
Status: in_force

42-5029.02. Distribution of revenues for education; definitions

A. All monies collected pursuant to section 42-5010.01 and section 42-5155, subsection E shall be distributed each fiscal year pursuant to this subsection. The monies distributed pursuant to this subsection are in addition to any other appropriation, transfer or other allocation of public or private monies from any other source and may not supplant, replace or cause a reduction in other school district, charter school, university or community college funding sources. The monies shall be distributed as follows:

1. $64,100,000 is appropriated each fiscal year, to be paid in monthly installments, to the superintendent of public instruction for basic state aid.

2. After any transfer of monies pursuant to paragraph 1 of this subsection, twelve percent of the remaining monies collected during the preceding month shall be transferred to the technology and research initiative fund established by section 15-1648 to be distributed among the universities under the jurisdiction of the Arizona board of regents for the purpose of investment in technology and research-based initiatives.

3. After the transfer of monies pursuant to paragraph 1 of this subsection, three percent of the remaining monies collected during the preceding month shall be transferred to the workforce development account established in each community college district pursuant to section 15-1472 for the purpose of investment in workforce development programs.

4. After the transfer of monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth of the amount a community college that is owned, operated or chartered by a qualifying Indian tribe on its own Indian reservation would receive pursuant to section 15-1472, subsection D, paragraph 2 if it were a community college district shall be distributed each month to the treasurer or other designated depository of the qualifying Indian tribe. Monies distributed pursuant to this paragraph are for the exclusive purpose of providing support to one or more community colleges that are owned, operated or chartered by a qualifying Indian tribe and shall be used in a manner consistent with section 15-1472, subsection B.

5. After the transfer of monies pursuant to paragraphs 1, 2 and 3 of this subsection, one-twelfth of $86,280,500 shall be transferred each month to the department of education for the increased cost of basic state aid under section 15-971 due to added school days and associated teacher salary increases that were enacted in 2000.

6. After the transfer of monies pursuant to paragraphs 1, 2 and 3 of this subsection, $7,800,000 is appropriated each fiscal year, to be paid in monthly installments, to the department of education to be used for school safety as provided in section 15-154 and $200,000 is appropriated each fiscal year, to be paid in monthly installments, to the department of education to be used for the character education matching grant program as provided in section 15-154.01.

7. After the transfer of monies pursuant to paragraphs 1, 2 and 3 of this subsection, the legislature may not appropriate more than $7,000,000 each fiscal year to the department of education to be used for accountability purposes as described in section 15-241.02 and title 15, chapter 9, article 8.

8. After the transfer of monies pursuant to paragraphs 1, 2 and 3 of this subsection, $1,500,000 is appropriated each fiscal year, to be paid in monthly installments, to the failing schools tutoring fund established by section 15-241.

9. After the transfer of monies pursuant to paragraphs 1, 2 and 3 of this subsection, $25,000,000 shall be transferred each fiscal year to the state general fund to reimburse the state general fund for the cost of the income tax credit allowed by section 43-1072.02.

10. From and after June 30, 2022 through June 30, 2028, after the transfer of monies pursuant to paragraphs 1 through 9 of this subsection, an amount determined by the director pursuant to section 42-5041 to the department of revenue integrated tax system project fund established by section 42-5041.

11. After the transfer of monies pursuant to paragraphs 1 through 10 of this subsection, the remaining monies collected during the preceding month shall be transferred to the classroom site fund established by section 15-977. The monies shall be allocated in the manner prescribed by section 15-977.

B. For the purposes of this section:

1. "Community college district" means a community college district that is established pursuant to sections 15-1402 and 15-1403 and that is a political subdivision of this state and, unless otherwise specified, includes a community college tuition financing district established pursuant to section 15-1409.

2. "Qualifying Indian tribe" has the same meaning as defined in section 42-5031.01.
A.R.S. § 42-3251 — Arizona Code / Title 42 / Chapter 3 / Article 6 / Section 3251
42-3251 Levy and collection of tobacco tax
Status: in_force

42-3251. Levy and collection of tobacco tax

(Caution:  1998 Prop. 105 applies)

A. In addition to all other taxes, and in addition to the tax levied and imposed by article 2 of this chapter, there is levied and shall be collected by the department and paid to the state treasurer in the manner provided by this chapter on all cigarettes, cigars, smoking tobacco, plug tobacco, snuff and other forms of tobacco the following tax:

1. On each cigarette, 2 cents.

2. On smoking tobacco, snuff, fine cut chewing tobacco, cut and granulated tobacco, shorts and refuse of fine cut chewing tobacco, and refuse, scraps, clippings, cuttings and sweepings of tobacco, excluding tobacco powder or tobacco products used exclusively for agricultural or horticultural purposes and unfit for human consumption, 4.5 cents per ounce or major fraction of an ounce.

3. On all cavendish, plug or twist tobacco, 1.1 cents per ounce or fractional part of an ounce.

4. On each twenty small cigars or fractional part weighing not more than three pounds per thousand, 8.9 cents.

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

(a) If manufactured to retail at not more than 5 cents each at 4.4 cents on each three cigars.

(b) If manufactured to retail at more than 5 cents each, 4.4 cents on each cigar.
A.R.S. § 42-18201 — Arizona Code / Title 42 / Chapter 18 / Article 5 / Section 18201
42-18201 Action to foreclose right to redeem; subsequent certificates of purchase by assignment
Status: in_force

42-18201. Action to foreclose right to redeem; subsequent certificates of purchase by assignment

A. Except as provided in subsection B of this section, at any time beginning three years after the sale of a tax lien but not later than ten years after the last day of the month in which the lien was acquired pursuant to section 42-18114, if the lien is not redeemed, the purchaser or the purchaser's heirs or assigns, or the state if it is the assignee, may bring an action to foreclose the right to redeem.  The action to foreclose the right to redeem shall be filed in the superior court in the county in which the real property is located and shall name the county treasurer as a party to the action.  If any applicable law or court order prohibits bringing an action to foreclose the right to redeem, the limitation provided herein shall be extended twelve months following the termination of such prohibition.

B. For a subsequent year certificate of purchase by assignment issued under section 42-18121, subsection B, at any time beginning three years after the date the subsequent year certificate of purchase was assigned but not later than ten years after the last day of the month in which the tax lien was assigned under section 42-18121, if the lien is not redeemed, the purchaser or the purchaser's heirs or assigns, or the state if it is the assignee, may bring an action to foreclose the right to redeem the lien represented by certificates of purchase acquired by assignment and held by the party that filed the action to foreclose.  All certificates of purchase held by other parties remain in place.  The action to foreclose the right to redeem shall be filed in the superior court in the county in which the real property is located and shall name the county treasurer as a party to the action.  If any applicable law or court order prohibits bringing an action to foreclose the right to redeem, the limitation provided in this subsection shall be extended twelve months following the termination of the prohibition.
A.R.S. § 42-5161 — Arizona Code / Title 42 / Chapter 5 / Article 4 / Section 5161
42-5161 Collection from purchaser; receipt; tax as debt to state
Status: in_force

42-5161. Collection from purchaser; receipt; tax as debt to state

Except as provided by section 42-5167, every retailer and utility business shall collect from the purchaser the tax imposed by this article and give to such purchaser a receipt for the tax in the manner and form prescribed by the department.  The tax required to be collected shall be shown separately on the invoice or other proof of sale.  The tax required to be collected shall constitute a debt owed by the retailer or utility business to this state.