A.R.S. § 42-1004 — Arizona Code / Title 42 / Chapter 1 / Article 1 / Section 1004
42-1004 General powers and duties of the department; res judicata; remedies; enforcement; special collections account
Status: in_force

42-1004. General powers and duties of the department; res judicata; remedies; enforcement; special collections account

A. The department shall administer and enforce this title, title 43 and other laws assigned to it and has all the powers and duties prescribed by law for such purposes. In all proceedings prescribed by law the department may act on behalf of this state. In addition, the department shall:

1. Formulate policies, plans and programs to effectuate the missions and purposes of the department.

2. Employ and remove personnel subject to title 41, chapter 4, article 4 and, as applicable, articles 5 and 6, determine the conditions of employment and prescribe the duties and powers of administrative, professional, technical, secretarial, clerical and other personnel as may be necessary in the performance of its duties, and contract for the services of outside advisors, consultants and aides as may be reasonably necessary.

3. Make contracts and incur obligations within the general scope of its activities and operations subject to the availability of its funds.

4. Contract with or assist other departments, agencies or institutions of the state, local, Indian tribal and federal governments in the furtherance of its purposes, objectives and programs.

5. Accept grants, matching funds and direct payments from public or private agencies for the conduct of programs which are consistent with the overall purposes and objectives of the department.

6. Provide information and advice within the scope of its duties subject to the laws on confidentiality of information and departmental rules adopted pursuant to such laws.

7. Advise with and make recommendations to the governor and the legislature on all matters concerning its objectives.

8. Have an official seal which shall be judicially noticed.

9. Provide an integrated, coordinated and uniform system of tax administration and revenue collection for the state, including a coordinated electronic method of collecting state and municipal transaction privilege and affiliated excise taxes.

B. The department may:

1. With the approval of the attorney general:

(a) Abate any balance owed by a taxpayer if the balance is uncollectible.  Related liens, if any, are extinguished on abatement.

(b) Abate all or part of the unpaid portion of any tax if the director determines that the administration and collection costs involved would exceed the amount of the tax.

2. Offer publications relating to the administration of state taxes for sale at a price equal to the pro rata cost of publication and distribution.  Monies received from the sale of publications shall be placed in a revenue publications revolving fund. Monies in the fund:

(a) Shall be used to meet publication and distribution expenses.

(b) Are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

3. Enter into contingent fee contracts to collect delinquent state taxes, penalties, interest and other amounts owed to the department under title 43 and chapter 5, article 1 of this title, consistent with the requirements of chapter 2, article 1 of this title. No contract may be entered into for the hiring of auditors on a contingent fee basis except auditors that are hired to enforce title 44, chapter 3.

C. In the determination of any issue of law or fact under this title or title 43, neither the department, nor any officer or agency having any administrative duties under this title or title 43, nor any court is bound by the determination of any other executive officer or administrative agency of this state.  In the determination of any case arising under this title or title 43, the rule of res judicata is applicable only if the liability involved is for the same year or period as was involved in another case previously determined under this title or title 43.

D. The remedies of this state provided for in this title and title 43 are cumulative, and no action taken by the department constitutes an election by this state to pursue any remedy to the exclusion of any other remedy provided by law.

E. The attorney general shall prosecute in the name of this state all actions necessary to enforce this title and title 43. The attorney general may defend all actions brought against this state or an officer or agency of this state arising under this title and title 43. The attorney general may delegate the prosecuting authority to any county attorney for prosecution in that county.

F. A special collections account is established in the state general fund.  All monies collected pursuant to contracts authorized by subsection B, paragraph 3 of this section shall be deposited in the special collections account.  The department shall pay from the account all fees and court costs provided for in the contracts authorized under subsection B, paragraph 3 of this section. The department shall allocate the remainder of the amounts collected under subsection B, paragraph 3 of this section to the state or the political subdivision in the proportion that the monies would have been distributed pursuant to chapter 5 of this title or section 43-206, respectively.
A.R.S. § 42-11132 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11132
42-11132 Property leased to educational institutions
Status: in_force

42-11132. Property leased to educational institutions

A. Property, buildings and fixtures that are leased to a nonprofit charter school or a residential treatment and education facility and that are used for educational instruction in any grade or program through grade twelve shall be classified as class nine property pursuant to section 42-12009.  If only part of a parcel of real property or improvements to real property is leased for operation of a charter school or a residential treatment and education facility, only the portion so leased qualifies as class nine property.

B. Property, buildings and fixtures that are owned by an educational, a religious or a charitable organization, institution or association and leased to a nonprofit educational organization, institution or association are exempt from taxation if the property is used for educational instruction in any grade or program through grade twelve.

C. If the educational, religious or charitable organization, institution or association that owns the property files with the assessor the affidavit required by section 42-11152, evidence of the organization's, institution's or association's tax exempt status under section 501(c)(3) of the internal revenue code and an affidavit by the educational organization, institution or association that it uses the property for educational instruction as described in subsection B of this section, the property qualifies for the tax exemption under this section. The educational, religious or charitable organization, institution or association shall notify the county assessor in writing pursuant to section 42-11152 if all or part of the property is conveyed to a new owner or is no longer used for educational purposes.
A.R.S. § 42-13052 — Arizona Code / Title 42 / Chapter 13 / Article 2 / Section 13052
42-13052 Continuing valuation of class two, three and four property
Status: in_force

42-13052. Continuing valuation of class two, three and four property

In the case of property that is classified as class two, three or four pursuant to section 42-12002, 42-12003 or 42-12004, the assessor may use the same valuation for up to three consecutive tax years if:

1. The assessor files a specific plan for the valuations with the department.

2. The plan is implemented uniformly throughout the county.
A.R.S. § 42-14054 — Arizona Code / Title 42 / Chapter 14 / Article 2 / Section 14054
42-14054 Determining and reporting valuation of closed mines
Status: in_force

42-14054. Determining and reporting valuation of closed mines

A. On or before August 31 of each year, the department shall find the full cash value of all patented and unpatented mines that were producing mines on the first Monday in January of any of the three preceding years but that are no longer producing mines.

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

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

D. The department shall value nonproducing mines for a period of three valuation years after the last valuation year in which it was valued as a producing mine.
A.R.S. § 42-16106 — Arizona Code / Title 42 / Chapter 16 / Article 3 / Section 16106
42-16106 Hearing
Status: in_force

42-16106. Hearing

A. The county board shall act on the petition, shall hear testimony presented in person at the hearing and may subpoena witnesses to testify regarding the petition. Unless all parties agree otherwise, each party shall submit evidence in person.

B. The petitioner shall pay the cost of producing the petitioner's witnesses at the hearing.

C. The assessor or the assessor's designated representative shall:

1. Attend all meetings and hearings of the county board.

2. Supply the board with all information that the assessor possesses.
A.R.S. § 42-17102 — Arizona Code / Title 42 / Chapter 17 / Article 3 / Section 17102
42-17102 Contents of estimate of expenses
Status: in_force

42-17102. Contents of estimate of expenses

A. The annual estimate of expenses of each county, city and town shall include:

1. An estimate of the amount of money required for each item of expenditure necessary for county, city or town purposes, which must include, by fund:

(a) Beginning in fiscal year 2013-2014, the estimated number of full-time employees.

(b) Beginning in fiscal year 2013-2014, the total estimated personnel compensation, which shall separately include the employee salaries and employee related expenses for retirement costs and health care costs.

2. The amounts necessary to pay the interest and principal of outstanding bonds.

3. The items and amounts of each special levy provided by law.

4. An amount for unanticipated contingencies or emergencies.

5. A statement of the receipts for the preceding fiscal year from sources other than direct property taxes.

6. The amounts that are estimated to be received during the current fiscal year from sources other than direct property taxes and voluntary contributions.

7. The amounts that were actually levied and the amounts that were actually collected for county, city or town purposes on the primary and secondary property tax rolls of the preceding fiscal year.

8. The amounts that were collected through primary property taxes and secondary property taxes levied for the years before the preceding fiscal year.

9. The amount that is proposed to be raised by direct property taxation for the current fiscal year for the general fund, bonds, special assessments and district levies.

10. The separate amounts to be raised by primary property tax levies and by secondary property tax levies for the current fiscal year.

11. The amount of voluntary contributions estimated to be received pursuant to section 48-242, based on the information transmitted to the governing body by the department of revenue.

12. The maximum amount that can be raised by primary property tax levies by the county, city or town pursuant to article 2 of this chapter for the current fiscal year.

13. The amount that the county, city or town proposes to raise by secondary property tax levies and the additional amounts, if any, that the county, city or town will levy pursuant to the authority given to the governing body by the voters at an election called pursuant to article 5 of this chapter.

14. The property tax rate for county, city or town purposes for the preceding fiscal year for the primary property tax and the secondary property tax.

15. The estimated property tax rate for county, city or town purposes for the current fiscal year for the primary property tax and the secondary property tax.

16. The expenditure limitation for the preceding fiscal year and the total amount that was proposed to be spent for the preceding fiscal year.

17. The total expenditure limitation for the current fiscal year.

18. The amount of monies received from primary property taxation in the preceding fiscal year in excess of the maximum allowable amount as computed pursuant to article 2 of this chapter.

B. The estimate shall be fully itemized according to forms supplied by the auditor general showing under separate headings:

1. The amounts that are estimated as required for each department, public office or official.

2. A complete disclosure and statement of the contemplated expenditures for the current fiscal year, showing the amount proposed to be spent from each fund and the total amount of proposed public expense.

C. The total of amounts proposed in the estimates to be spent shall not exceed the expenditure limitation established for the county, city or town.
A.R.S. § 42-5018 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5018
42-5018 Method of payment
Status: in_force

42-5018. Method of payment

All remittances of taxes imposed by this article shall be made by bank draft, check, cashier's check, money order, cash or electronic funds transfer to the department, which shall issue receipts therefor to the taxpayers, but no remittance other than cash shall be final discharge of liability for the tax levied by this article until it has been paid in cash to the department.
A.R.S. § 42-17301 — Arizona Code / Title 42 / Chapter 17 / Article 7 / Section 17301
42-17301 Definitions
Status: in_force

42-17301. Definitions

In this article, unless the context otherwise requires:

1. "Property taxes" means all ad valorem taxes that are levied by all taxing jurisdictions and that become a lien on a residence, including special assessments.

2. "Residence" means real and personal property and improvements that constitute an owner-occupied dwelling that is classified as class three pursuant to section 42-12003.

3. "Tax deferred residence" means a residence on which property taxes are deferred pursuant to this article for the current or any prior tax year.

4. "Taxable income" has the same meaning prescribed in section 43-1001.

5. "Taxpayer" means an individual or an individual's legal representative who files a claim for deferral pursuant to this article.
A.R.S. § 42-11111 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11111
42-11111 Exemption for property; widows and widowers; persons with a total and permanent disability; veterans with a disability; definitions
Status: in_force

42-11111. Exemption for property; widows and widowers; persons with a total and permanent disability; veterans with a disability; definitions

A. The property of widows and widowers, of persons with total and permanent disabilities and of veterans with service or nonservice connected disabilities who are residents of this state is exempt from taxation as provided by article IX, section 2, Constitution of Arizona, and subject to the conditions and limits prescribed by this section.

B. Pursuant to article IX, section 2, subsection F, Constitution of Arizona, the exemptions from taxation under this section are allowed as provided in subsections C, D and E of this section.

C. The property of a veteran with a service-connected disability whose disability rating by the United States department of veterans affairs is one hundred percent is fully exempt from taxation. The surviving spouse of a veteran whose property is eligible for the exemption under this subsection may continue to claim the full exemption as long as the surviving spouse uses the property as the surviving spouse's primary residence and the surviving spouse does not remarry.

D. The property of a veteran with a nonservice-connected disability whose disability rating by the United States department of veterans affairs is one hundred percent or less or with a service-connected disability whose disability rating by the United States department of veterans affairs is less than one hundred percent is exempt in the amount of $4,188. The limit under this subsection is further limited by multiplying the total exemption amount by the percentage of the veteran's disability, as rated by the United States department of veterans affairs.

E. The property of a widow or widower or a person with a total and permanent disability is exempt in the amount of:

1. $4,188 if the person's total assessment does not exceed the amount provided in paragraph 2 of this subsection.

2. No exemption if the person's total assessment exceeds $28,459.

F. On or before December 31 of each year, the department shall increase the following amounts:

1. The total allowable exemption amount under subsection D and subsection E, paragraph 1 of this section based on the average annual percentage increase, if any, in the GDP price deflator in the two most recent complete state fiscal years.

2. Beginning in tax year 2026, the total assessment limit amount under subsection E, paragraph 2 of this section based on the average annual percentage increase, if any, in the federal house price index for the two most recent complete state fiscal years.

3. The total income limit amounts under subsection H, paragraphs 1 and 2 of this section based on the average annual percentage increase, if any, in the GDP price deflator in the two most recent complete state fiscal years.

G. For the purpose of determining the amount of the allowable exemption pursuant to subsection E of this section, the person's total assessment shall not include the value of any vehicle that is taxed under title 28, chapter 16, article 3.

H. Pursuant to article IX, section 2, subsection F, Constitution of Arizona, to qualify for this exemption, the total income from all sources of the claimant and the claimant's spouse and the income from all sources of all of the claimant's children who resided with the claimant in the claimant's residence in the year immediately preceding the year for which the claimant applies for the exemption shall not exceed:

1. $34,901 if none of the claimant's children under eighteen years of age resided with the claimant in the claimant's residence.

2. $41,870 if one or more of the claimant's children residing with the claimant in the claimant's residence either:

(a) Were under eighteen years of age.

(b) Had a total and permanent physical or mental disability, as certified by competent medical authority as provided by law.

I. For the purposes of subsection H of this section, "income from all sources" means the sum of the following, excluding the items listed in subsection J of this section:

1. Adjusted gross income as defined by the department.

2. The amount of capital gains excluded from adjusted gross income.

3. Nontaxable strike benefits.

4. Nontaxable interest that is received from the federal government or any of its instrumentalities.

5. Payments that are received from a retirement program and paid by:

(a) This state or any of its political subdivisions.

(b) The United States through any of its agencies, instrumentalities or programs, except as provided in subsection J of this section.

6. The gross amount of any pension or annuity that is not otherwise exempted.

J. Notwithstanding subsection I of this section, income from all sources does not include monies received from:

1. Cash public assistance and relief.

2. Railroad retirement benefits.

3. Payments under the federal social security act (49 Stat. 620).

4. Payments under the unemployment insurance laws of this state.

5. Payments from any veterans pensions.

6. Workers' compensation payments.

7. Loss of time insurance.

8. Gifts from nongovernmental sources, surplus foods or other relief in kind supplied by a governmental agency.

K. A widow or widower, a person with a total and permanent disability or a veteran with a disability shall establish eligibility for exemption under this section by filing an affidavit with the county assessor under section 42-11152 when initially claiming the exemption. Each year thereafter, the person or the person's representative shall annually calculate income from the preceding year to ensure that the person still qualifies for the exemption and notify the county assessor in writing of any event that disqualifies the person from further exemption.  Regardless of whether the person or representative notifies the assessor as required by this subsection, the property is subject to tax as provided by law from the date of disqualification, including interest, penalties and proceedings for tax delinquencies.  Disqualifying events include:

1. Except as provided in subsection C of this section, the person's death.

2. The remarriage of a widow or widower.

3. The person's income from all sources exceeding the limits prescribed by subsection H of this section.

4. The conveyance of title to the property to another owner.

L. Any dollar amount of exemption that is unused in a tax year against the limited property value of property and improvements owned by the individual may be applied for the tax year against the value of personal property subject to special property taxes, including the taxes collected pursuant to title 5, chapter 3, article 3 and title 28, chapter 16, article 3.

M. An individual is not entitled to property tax exemptions under more than one category as a widow or widower, a person with a total and permanent disability or a veteran with a disability even if the individual is eligible for an exemption in more than one category.

N. For the purposes of this section:

1. "Competent medical authority" means any of the following:

(a) An individual licensed under title 32, chapter 8, 13, 14, 17, 19.1, 25 or 29 or a comparable law of another state.

(b) A registered nurse practitioner as defined in section 32-1601.

(c) The United States department of veterans affairs, as evidenced by a disability award letter.

2. "Federal house price index" means the average measure of movement of single-family house prices in the United States published by the federal housing finance agency, or its successor, for this state.

3. "GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce or its successor for the four quarters of the state fiscal year.

4. "Person with a total and permanent disability" means a person who is unable to engage in any substantial gainful activity, for pay or profit, by reason of any physical or mental impairment that is expected to last for a continuous period of at least twelve months or result in death within twelve months as certified by a competent medical authority.

5. "Veteran" means an individual who has served in, and been discharged, separated or released under honorable conditions from, active or inactive service in the uniformed services of the United States, including:

(a) All regular, reserve and national guard components of the United States army, navy, air force, marine corps and coast guard.

(b) The commissioned corps of the national oceanic and atmospheric administration.

(c) The commissioned corps of the United States public health service.

(d) A nurse in the service of the American red cross or in the army and navy nurse corps.

(e) Any other civilian service that is authorized by federal law to be considered active military duty for the purpose of laws administered by the United States secretary of veterans affairs.
A.R.S. § 42-11008 — Arizona Code / Title 42 / Chapter 11 / Article 1 / Section 11008
42-11008 Validity of assessment despite irregularities in the roll
Status: in_force

42-11008. Validity of assessment despite irregularities in the roll

The lack of description, a misdescription or an irregularity in the description of property on the roll does not invalidate an assessment if it can be ascertained or proved what property is intended.
A.R.S. § 42-1203 — Arizona Code / Title 42 / Chapter 1 / Article 5 / Section 1203
42-1203 Production of books
Status: in_force

42-1203. Production of books

If a levy has been made or is about to be made on any property, or right to property, any person having custody or control of any books or records containing evidence or statements relating to the property or right to property subject to levy shall, upon demand of the department, exhibit such books or records to the department.
A.R.S. § 42-11121 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11121
42-11121 Exemption for property of charitable community service organizations
Status: in_force

42-11121. Exemption for property of charitable community service organizations

Property that is not used or held for profit and that is owned by a community service organization the mission of which is to serve a population that includes persons who are indigent or afflicted, as defined in section 42-11101, and that qualifies as a charitable organization and is recognized under section 501(c)(3) of the internal revenue code is exempt from taxation if the community service organization is primarily engaged in delivering services on that property consisting of fitness programs, camping programs, health and recreation services, youth programs, child care, senior citizen programs, individual and family counseling, employment and training programs, services for individuals with disabilities, meals, feeding programs or disaster relief.
A.R.S. § 42-3352 — Arizona Code / Title 42 / Chapter 3 / Article 8 / Section 3352
42-3352 Reports of distillers and manufacturers
Status: in_force

42-3352. Reports of distillers and manufacturers

A. Every distiller or manufacturer of distilled spirits and vinous and malt liquors that sells any of those products to wholesalers within this state shall maintain in its records a copy of the invoice of the sale, showing in detail:

1. The kind of liquor or beverage sold.

2. The quantities of each.

3. The size of the container and the weight of the contents.

4. The alcoholic content if required by section 42-3052.

5. The name of the person, firm or corporation to whom sold.

B. A distiller or manufacturer shall make the invoices required to be kept pursuant to subsection A of this section available to the department on request.
A.R.S. § 42-14307 — Arizona Code / Title 42 / Chapter 14 / Article 7 / Section 14307
42-14307 Appeals
Status: in_force

42-14307. Appeals

A. On or before October 1 a private car company may appeal the department's valuation of its property to the state board of equalization as provided by section 42-16158. The state board shall immediately notify the department of the appeal.

B. The state board shall decide all private car company appeals on or before October 31.

C. A private car company may also apply for administrative review and appeal of any determination under this article pursuant to article 1 of this chapter.
A.R.S. § 42-6113 — Arizona Code / Title 42 / Chapter 6 / Article 3 / Section 6113
42-6113 Distribution of revenues for county stadium district from county transportation excise tax; definitions
Status: in_force

42-6113. Distribution of revenues for county stadium district from county transportation excise tax; definitions

(Rpld. 4/1/55)

A. Subject to section 48-4238, beginning the first month following September 26, 2025 and each month thereafter through March 31, 2056, the state treasurer, on instruction from the department, shall transmit from the amount collected pursuant to this article the amount determined under subsection B of this section to the county stadium district established pursuant to title 48, chapter 26 for deposit in the county stadium district fund established pursuant to section 48-4231.

B. The amount to be transmitted under subsection A of this section is the total amount of county excise taxes collected pursuant to sections 42-6105 and 42-6105.01 on behalf of the county for taxable periods beginning on October 1, 2025 through December 31, 2055 from persons engaged in the following business activities at, or with respect to events held at, a major league baseball facility or an adjacent building that is owned by a county stadium district pursuant to title 48, chapter 26 and operated by the county stadium district or the professional baseball franchise organization that occupies the major league baseball facility or adjacent building:

1. Selling tangible personal property at retail.

2. Operating or conducting theaters, movies, operas, shows of any type or nature, exhibitions, concerts, carnivals, circuses, amusement parks, menageries, fairs, races, contests, games, billiard or pool parlors, bowling alleys, public dances, dance halls, boxing and wrestling matches, skating rinks, tennis courts, video games, pinball machines or sports events or any other business charging admission or user fees for exhibition, amusement or entertainment.

3. Operating a restaurant, dining car, dining room, lunchroom, mobile food unit, lunch stand, soda fountain, catering service or similar establishment where articles of food or drink are sold for consumption on or off the premises.

4. Prime contracting.

C. For the purposes of this section and subject to section 48-4238, beginning October 1, 2025 and each month thereafter through December 31, 2055, the department shall separately account for revenues collected pursuant to sections 42-6105 and 42-6105.01 from each business prescribed in subsection B of this section on the premises of a major league baseball facility or an adjacent building that is owned by a county stadium district pursuant to title 48, chapter 26 and operated by the county stadium district or the professional baseball franchise organization that occupies the major league baseball facility or adjacent building.

D. For the purposes of this section, "adjacent building" and "major league baseball facility" have the same meanings prescribed in section 48-4201.
A.R.S. § 42-11113 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11113
42-11113 Exemption for land and buildings owned by animal control and humane societies
Status: in_force

42-11113. Exemption for land and buildings owned by animal control and humane societies

Land and buildings that are owned by societies to prevent cruelty to animals and to shelter, care for and control animals are exempt from taxation if the land and buildings are used only for those purposes and are not used or held for profit.
A.R.S. § 42-14155 — Arizona Code / Title 42 / Chapter 14 / Article 4 / Section 14155
42-14155 Valuation of renewable energy and storage equipment; definitions
Status: in_force

42-14155. Valuation of renewable energy and storage equipment; definitions

A. Through December 31, 2040, the department shall determine the full cash value of taxable renewable energy and storage equipment in the manner prescribed by this section.

B. The full cash value of renewable energy and storage equipment is twenty percent of the depreciated cost of the equipment. Depreciated cost shall be determined by deducting depreciation from taxable original cost.  Depreciation shall not exceed ninety percent of the adjusted original cost.

C. For the purposes of this section, all energy storage equipment, both colocated with renewable energy and stand-alone energy storage equipment, qualifies for valuation pursuant to this section.

D. For the purposes of this section:

1. "Depreciation" means straight-line depreciation over the useful life, as adopted by the department, of the item of property.

2. "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.

3. "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.

4. "Original cost" means the actual cost, without trending, of acquiring or constructing property, including additions, retirements, adjustments and transfers.

5. "Renewable energy and storage equipment" means electric generation facilities, electric transmission, electric distribution, energy storage, gas distribution or combination gas and electric transmission and distribution and transmission and distribution cooperative property that is located in this state, that is used or useful for generating, storing, transmitting or distributing electric power, energy or fuel derived from solar, wind or other nonpetroleum renewable sources not intended for self-consumption, including materials and supplies and construction work in progress, but excluding licensed vehicles and property valued under sections 42-14154 and 42-14156.

6. "Taxable original cost" means the original cost reduced by the value of any investment tax credits, production tax credits or cash grants in lieu of investment tax credits applicable to the taxable renewable energy and storage equipment.
A.R.S. § 42-3405 — Arizona Code / Title 42 / Chapter 3 / Article 10 / Section 3405
42-3405 Tobacco manufacturers, importers, distributors and retailers; recordkeeping and invoicing requirements; retention period
Status: in_force

42-3405. Tobacco manufacturers, importers, distributors and retailers; recordkeeping and invoicing requirements; retention period

A. Except for retail transactions with consumers, each manufacturer, importer and distributor of tobacco products shall maintain copies of invoices or equivalent documentation for each facility and for each transaction that involves the sale, purchase, transfer, consignment or receipt of tobacco products within this state.  The invoices or equivalent documentation for each transaction shall be in the form and manner prescribed by the department and shall indicate the name and address of the other party and the quantity by brand style of the tobacco products involved in the transaction.

B. A distributor of tobacco products shall issue an invoice or equivalent documentation for each transaction that involves the sale, purchase or consignment of tobacco products to a retailer. The invoice or equivalent documentation must include the license number of the distributor, which the retailer may use to ascertain whether the license is current and valid.

C. Any retailer of tobacco products shall retain all invoices or equivalent documentation received under subsection B of this section.

D. Records required under this section shall be preserved on the premises described in the relevant license in a manner as to ensure accessibility for inspection at reasonable hours by authorized personnel of the department. With the department's permission, persons with multiple places of business may retain centralized records, but shall transmit duplicates of the invoices or the equivalent documentation to each place of business within three business days after a request by the department.

E. The records required by this section shall be retained for a period of four years after the date of the transaction.

F. On request, the department and the United States secretary of the treasury or secretary's designee shall have access to records required under this section and reports required under section 42-3462. The department at its sole discretion may share the records and reports required by this chapter with other law enforcement officials of federal and state governments under conditions that assume the confidentiality of taxpayer information contained in the records and reports.
A.R.S. § 42-18120 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18120
42-18120 Duplicate certificate of purchase; fee
Status: in_force

42-18120. Duplicate certificate of purchase; fee

A. If a certificate of purchase is lost, destroyed or wrongfully withheld from the rightful owner, the purchaser of the certificate may file a notarized affidavit with the county treasurer attesting to the loss of the certificate. On presentation of the notarized affidavit, the county treasurer shall issue to the holder an exact duplicate of the certificate of purchase.

B. The county treasurer shall collect a fee of five dollars for each duplicate certificate of purchase.
A.R.S. § 42-17252 — Arizona Code / Title 42 / Chapter 17 / Article 6 / Section 17252
42-17252 Municipal assessment and tax roll
Status: in_force

42-17252. Municipal assessment and tax roll

A. The board of supervisors shall compute and carry out separate entries for each city and town in the county. This constitutes the assessment and tax roll for the city or town.

B. When the roll is completed and the extensions are revised and equalized, no other roll may be made for the purpose of collecting a general tax for any city or town.
A.R.S. § 42-15101 — Arizona Code / Title 42 / Chapter 15 / Article 3 / Section 15101
42-15101 Annual notice of full cash value; amended notice of valuation
Status: in_force

42-15101. Annual notice of full cash value; amended notice of valuation

A. Except as provided by section 42-13254, on any date before March 1 of each year the county assessor shall notify each owner of record, or purchaser under a deed of trust or an agreement of sale, of property that is valued by the assessor as to the property's full cash value and the limited property value, if applicable, to be used for assessment purposes.

B. The notice under this section shall be in writing and shall be mailed, delivered by common carrier, or on request of the taxpayer transmitted electronically to the person's last known mailing, delivery or electronic address. With respect to any property transferred by a beneficiary deed pursuant to section 33-405, until the county assessor is notified by the beneficiary in writing, accompanied by a certified copy of the last surviving owner's death certificate and the change of address, mailing of the notice to the last known address of the deceased owner is deemed a mailing to the beneficiary's last known mailing, delivery or electronic address as required by this section.

C. On the same date each year the assessor shall certify to the board of supervisors and the department the date on which all notices under this section were mailed.

D. The director may extend the final date for mailing notices beyond March 1 for a period of not more than thirty days for delays caused by an act of God, flood or fire or a state of emergency declared pursuant to section 26-303. If the director extends the mailing date, the extension applies to all property valued by the assessor.

E. Within sixty days after the mailing of the notice of valuation pursuant to this section, if the assessor discovers that property characteristic data applicable to a grouping of properties delineated by neighborhood or classification resulted in an incorrect opinion of value, the assessor may amend the notice of valuation and, if amended, shall notify the property owner of the amended value pursuant to subsection B of this section.  The assessor shall transmit any proposed amendments made under this subsection to the department as provided by section 42-11056, subsections B and C, in a format prescribed by the department. The assessor shall not mail the amended notices of valuation until the proposed amendments are transmitted to the department and the department approves the amended values. The assessor shall certify the amended notices of valuation pursuant to subsection C of this section.

F. After the mailing date of the notice, any person who owns, claims, possesses or controls property that is valued by the assessor may inquire of and be advised by the assessor as to the valuation of the property determined by the assessor, but the assessor shall not change the roll except as provided by chapter 16, article 2 of this title or as otherwise provided by law.
A.R.S. § 42-18302 — Arizona Code / Title 42 / Chapter 18 / Article 7 / Section 18302
42-18302 Notice of sale
Status: in_force

42-18302. Notice of sale

A. The board of supervisors shall advertise the real property for sale at a public sale. The advertisement shall be by:

1. Publishing the list and notice of sale in a newspaper of general circulation in the county at least once a week for at least two weeks, but not more than three weeks, before the stated date of the sale.

2. Continuously posting a current list and notice in the offices of the board of supervisors.

B. The newspaper that prints the list and notice shall also post the list and notice on the internet on a website that posts the legal notices of ten or more Arizona newspapers.
A.R.S. § 42-11132.01 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11132.01
42-11132.01 Property leased to a church, religious assembly or religious institution
Status: in_force

42-11132.01. Property leased to a church, religious assembly or religious institution

A. Property, buildings and fixtures that are leased to a nonprofit church, religious assembly or religious institution and that are primarily used or held for religious worship shall be classified as class nine property pursuant to section 42-12009. If only part of the parcel or improvements is leased to a nonprofit church, religious assembly or religious institution and primarily used or held for religious worship, only the portion so leased qualifies as class nine property. To qualify under this subsection, the church, religious assembly or institution must annually file with the assessor an affidavit that it:

1. Continues to use or hold the property primarily for religious worship.

2. Is the sole economic beneficiary of the classification of the property as class nine pursuant to section 42-12009, subsection A, paragraph 5.

B. Property, buildings and fixtures that are owned by an educational, religious or charitable organization, institution or association, that are leased to a nonprofit church, religious assembly or religious institution and that are primarily used or held for religious worship are exempt from taxation.

C. If the educational, religious or charitable organization, institution or association that owns the property files with the assessor the affidavit required by section 42-11152, evidence of the organization's tax exempt status under section 501(c)(3) of the internal revenue code and an affidavit by the nonprofit church, religious assembly or religious institution that it uses or holds the property primarily for religious worship as described in subsection B of this section, the property qualifies for the tax exemption under this section. The educational, religious or charitable organization, institution or association shall notify the county assessor in writing pursuant to section 42-11152 if all or part of the property is conveyed to a new owner or is no longer primarily used or held by the church, assembly or institution.
A.R.S. § 42-2201 — Arizona Code / Title 42 / Chapter 2 / Article 5 / Section 2201
42-2201 Election for relief from joint and several liability; definition
Status: in_force

42-2201. Election for relief from joint and several liability; definition

A. Notwithstanding section 43-301, subsection C and section 43-562, after filing a joint income tax return pursuant to section 43-309, a taxpayer may seek relief from joint and several liability under the following circumstances:

1. There is an understatement of tax attributable to erroneous items of one of the taxpayers filing the joint return.

2. The taxpayer making an election under this section establishes that in signing the return the taxpayer did not know, and had no reason to know, that there was an understatement.

3. Taking into account all of the facts and circumstances, it is inequitable to hold that taxpayer liable for the deficiency attributable to the understatement.

B. If a taxpayer qualifies for relief under subsection A of this section, the relief extends to the amount of liability for tax, interest and penalties that is attributable to the understatement.

C. If a taxpayer would qualify for relief under subsection A of this section except that under subsection A, paragraph 2 the taxpayer establishes that in signing the return the taxpayer did not know, and had no reason to know, the extent of the understatement, the relief extends only to the extent the liability for tax, interest and penalties is attributable to the portion of the understatement of which the taxpayer did not know and had no reason to know.

D. The department shall make any determination under this section without regard to community property laws.

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

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

G. Except in the case of a jeopardy assessment under section 42-1111, the department shall 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.

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

I. For the purposes of this section, "understatement" has the same meaning prescribed by section 6662(d)(2)(A) of the internal revenue code.
A.R.S. § 42-18053 — Arizona Code / Title 42 / Chapter 18 / Article 2 / Section 18053
42-18053 Interest on delinquent taxes; exceptions; waiver
Status: in_force

42-18053. Interest on delinquent taxes; exceptions; waiver

A. Except as provided in subsection B of this section, all taxes bear interest from the time of delinquency at the rate of sixteen percent per year simple until paid. A fraction of a month is counted as a whole month.

B. Interest shall not be collected:

1. If the delinquency is the result of an error by the county assessor or county treasurer.

2. If the full year tax for the year is paid on or before December 31 of the tax year.  This paragraph applies regardless of whether payment of tax is due pursuant to section 42-18052, subsections A and B or pursuant to section 42-18052, subsection C for an amount of tax that is $100 or less.

C. Subject to the approval of the county board of supervisors, the county treasurer may waive the interest that accrues pursuant to this section, and any other penalties, for a delinquency that occurs during the one-year period after a mortgage or deed of trust is satisfied or otherwise released on the property.  A taxpayer may receive a waiver under this subsection only once per property.
A.R.S. § 42-13202 — Arizona Code / Title 42 / Chapter 13 / Article 5 / Section 13202
42-13202 Exclusive method and procedure for valuing shopping centers; confidentiality
Status: in_force

42-13202. Exclusive method and procedure for valuing shopping centers; confidentiality

A. A shopping center that is subject to valuation for purposes of property tax shall be valued pursuant to this article. This article establishes the exclusive valuation methods and procedure for determining the valuation of a shopping center.

B. All information that a taxpayer submits pursuant to this article is confidential pursuant to chapter 2, article 1 of this title.
A.R.S. § 42-18112 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18112
42-18112 Time of sale
Status: in_force

42-18112. Time of sale

A. The tax lien sale shall be held in February.

B. On the day designated in the list and notice, the county treasurer shall begin the sale of all tax liens on real property that is described in the list and notice on which the taxes and charges have not been paid. The county treasurer shall continue the sale from day to day, Sundays and holidays excluded, until the tax lien on each parcel has been offered for sale and no more bids are offered by purchasers.
A.R.S. § 42-1302 — Arizona Code / Title 42 / Chapter 1 / Article 7 / Section 1302
42-1302 Tax incentives; conditions
Status: in_force

42-1302. Tax incentives; conditions

A. A prime contractor may qualify for an exemption from transaction privilege tax with respect to activities in a military reuse zone as provided, and subject to the terms and conditions prescribed, by section 42-5075, subsection B, paragraph 4.

B. Taxable property in a military reuse zone that is devoted to providing aviation or aerospace services or to manufacturing, assembling or fabricating aviation or aerospace products qualifies for assessment as class six property as provided, and subject to the terms and conditions prescribed, by sections 42-12006 and 42-15006.

C. To qualify for a tax incentive described in subsection A or B of this section, the taxpayer shall provide to the department information relating to the amount of tax benefits the taxpayer receives each year for each year in which the taxpayer claims the incentives on forms prescribed by the department. If the taxpayer fails to provide the required information, the department shall immediately revoke the taxpayer's certification of eligibility.

D. Taxpayers who qualify for tax incentives under subsection B of this section shall be certified by the department as eligible for a five-year period, subject to termination in the event of changed circumstances rendering the taxpayer no longer eligible.
A.R.S. § 42-5006 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5006
42-5006 Taxpayer bonds; out of state licensed contractors and manufactured building dealers
Status: in_force

42-5006. Taxpayer bonds; out of state licensed contractors and manufactured building dealers

A. Notwithstanding section 42-1102, the department shall require a surety bond for each taxpayer who is required to be licensed under title 32, chapter 10 or who is regulated under title 41, chapter 37, article 3, if the taxpayer's principal place of business is outside this state or if the taxpayer has conducted business in this state for less than one year. The department shall prescribe the form of the bond. The bond shall be maintained for a period of at least two years.

B. The bond, duly executed by the applicant as principal and with a corporation duly authorized to execute and write bonds in this state as surety, shall be payable to this state and conditioned on the payment of all transaction privilege taxes incurred and imposed on the taxpayer by this state and its political subdivisions. The bond shall be in such amount, but not less than two thousand dollars, as will assure the payment of the transaction privilege taxes which may reasonably be expected to be incurred by the licensed establishment for a period of one hundred fifty days.

C. The director, by rule, may establish classes of expected tax liability in five thousand dollar increments, beginning with the minimum bond amount prescribed in subsection B of this section. The bond shall provide that after notice and a hearing the director may order forfeited to this state and any affected political subdivision part or all of the bond for nonpayment of taxes, interest and penalties.

D. A licensee on application for a new license covered by subsection A of this section, renewal of a license covered by subsection A of this section or transfer of a license covered by subsection A of this section is exempt from posting a bond if the licensee has for at least two years immediately preceding the application made timely payment of all transaction privilege taxes incurred.

E. If a licensee is not exempt from this section, the director may exempt the licensee if the director finds that the surety bond is not necessary to insure payment of such taxes to the state and any affected political subdivision or the licensee had good cause for the late or insufficient payment of the transaction privilege tax and affiliated excise taxes incurred.
A.R.S. § 42-19003 — Arizona Code / Title 42 / Chapter 19 / Article 1 / Section 19003
42-19003 Improvements on unpatented land, mining claims or state land; exemption
Status: in_force

42-19003. Improvements on unpatented land, mining claims or state land; exemption

A. Improvements, appurtenances, wells, stock tanks and any other fixed property that is located on unpatented land, a mining claim or state land not secured by patented real property:

1. Shall be valued as personal property.

2. Are subject to sale as provided by this chapter.

B. A description sufficient to identify the property shall be entered on the personal property tax roll of the county.
A.R.S. § 42-11118 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11118
42-11118 Exemption for social welfare and quasi-governmental service property; qualifying activities
Status: in_force

42-11118. Exemption for social welfare and quasi-governmental service property; qualifying activities

A. Property that is owned by a volunteer nonprofit organization that is recognized under section 501(c)(4) of the internal revenue code and that is operated exclusively to promote social welfare and provide community quasi-governmental services in an unincorporated area of a county is exempt from taxation.

B. To qualify as providing quasi-governmental services under this section, the organization must provide at least six of the following services:

1. Public information and complaint office.

2. Voter registration.

3. Property tax assessment information.

4. Building permit distribution.

5. Resident assistance with deed restrictions and violations.

6. County planning and zoning review.

7. Water resources planning and management.

8. Public safety planning, oversight and maintenance.

9. Government liaison for regional planning activities.
A.R.S. § 42-11132.02 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11132.02
42-11132.02 Property leased to veterans' organization; definition
Status: in_force

42-11132.02. Property leased to veterans' organization; definition

A. Property, buildings and fixtures that are leased to a veterans' organization shall be classified as class nine property pursuant to section 42-12009. If only part of the parcel or improvements is leased to a veterans' organization and primarily used or held for the operations of the veterans' organization, only the portion so leased qualifies as class nine property. To qualify under this subsection, the veterans' organization must annually file with the assessor an affidavit that it:

1. Continues to use or hold the property primarily for the operations of the veterans' organization.

2. Is the sole economic beneficiary of the classification of the property as class nine pursuant to section 42-12009, subsection A, paragraph 6.

B. Property, buildings and fixtures that are owned by a veterans' organization, that are leased to a veterans' organization and that are primarily used for the operations of the veterans' organization are exempt from taxation.

C. If the veterans' organization that owns the property files with the assessor the affidavit required by section 42-11152, evidence of the veterans' organization's tax-exempt status under section 501(c)(3) or 501(c)(19) of the internal revenue code and an affidavit by the veterans' organization that it uses or holds the property primarily for the operations of the veterans' organization as described in subsection B of this section, the property qualifies for the tax exemption under this section. The veterans' organization shall notify the county assessor in writing pursuant to section 42-11152 if all or part of the property is conveyed to a new owner or is no longer primarily used or held by the veterans' organization.

D. For the purposes of this section, "veterans' organization" means a United States veterans' organization that qualifies as a charitable organization and that is recognized under section 501(c)(3) or 501(c)(19) of the internal revenue code.
A.R.S. § 42-15156 — Arizona Code / Title 42 / Chapter 15 / Article 4 / Section 15156
42-15156 Statewide abstract of property on county rolls; distribution
Status: in_force

42-15156. Statewide abstract of property on county rolls; distribution

A. The department shall prepare an abstract containing the valuation by county and taxing jurisdiction of all property that is subject to property taxation in this state.

B. Before April 30 the department shall transmit copies of the statewide abstract to the state or county board of equalization, as appropriate, and each county board of supervisors.
A.R.S. § 42-17253 — Arizona Code / Title 42 / Chapter 17 / Article 6 / Section 17253
42-17253 Computing municipal tax rate; levy
Status: in_force

42-17253. Computing municipal tax rate; levy

A. Within five days after the assessment roll has been finally made, revised and equalized, the clerk of the board of supervisors shall:

1. Compute the assessed valuations of all cities and towns whose taxes are included in the roll.

2. Arrive at the total assessed valuation of all property that is subject to taxation by cities and towns in the county.

B. The clerk shall deliver to the governing body of each city and town the aggregate total amount of valuation of all the property in the city or town.

C. The governing body of each city and town shall:

1. Compute the tax rate per one hundred dollars of valuation to be levied for each separate fund for which taxes are to be levied and collected.

2. By resolution levy the tax for the city or town.

3. Deliver a certified duplicate of its tax levy to the county board of supervisors on or before the day on which the board of supervisors levies the county tax.
A.R.S. § 42-17058 — Arizona Code / Title 42 / Chapter 17 / Article 2 / Section 17058
42-17058 Values for computing levy limit in the case of a merger of a community college district with a contiguous county
Status: in_force

42-17058. Values for computing levy limit in the case of a merger of a community college district with a contiguous county

If an existing community college district merges with a contiguous county that is not a part of a community college district, the values used in computing the levy limit under section 42-17051 for the first year of the new district shall be:

1. For section 42-17051, subsection A, paragraph 2, the sum of the values of the existing community college district and the values of the contiguous county that is not a part of a community college district.

2. For section 42-17051, subsection A, paragraph 1, the maximum allowable primary property tax levy for the existing community college district for the preceding year plus the amount of out county tuition paid by the contiguous county that is not part of a community college district in the preceding year.
A.R.S. § 42-16168 — Arizona Code / Title 42 / Chapter 16 / Article 4 / Section 16168
42-16168 Appeal to court
Status: in_force

42-16168. Appeal to court

A. Any party, or the department, that is dissatisfied with the valuation or classification of property reviewed by the state board may appeal to court as provided by section 42-16203.

B. Appeals from all other orders and decisions of the state board shall be as provided by law.
A.R.S. § 42-5205 — Arizona Code / Title 42 / Chapter 5 / Article 5 / Section 5205
42-5205 Administration; allocation of revenues
Status: in_force

42-5205. Administration; allocation of revenues

A. Except as otherwise provided in this section, or unless the context otherwise requires, article 1 of this chapter governs the administration of the tax imposed by this article.

B. The revenue derived from eighty per cent of the tax rate imposed by this chapter is designated as distribution base and shall be distributed pursuant to section 42-5029, subsection D.

C. The revenue derived from twenty per cent of the tax rate imposed by this chapter shall be credited to the state general fund and appropriated each year for public educational purposes.
A.R.S. § 42-3356 — Arizona Code / Title 42 / Chapter 3 / Article 8 / Section 3356
42-3356 Bonds required of farm wineries and direct shipment licensees; exemption
Status: in_force

42-3356. Bonds required of farm wineries and direct shipment licensees; exemption

A. Every farm winery that makes deliveries pursuant to section 4-205.04, subsection C, paragraph 7 or 9 or direct shipment licensee that makes deliveries pursuant to section 4-203.04 shall file with the department, in a form prescribed by the department, a bond or bonds, duly executed by the farm winery or direct shipment licensee as principal, and with a corporation duly authorized to execute and write bonds within this state as surety, payable to this state and conditioned on the payment of all taxes, penalties and other obligations of the farm winery or direct shipment licensee arising under this chapter and chapter 5 of this title.

B. The department shall fix the total amount of the bond or bonds required of the farm winery or direct shipment licensee and may increase or reduce the total amount at any time.  In fixing the total amount, the department shall require a bond or bonds equivalent in total amount to twice the farm winery's or direct shipment licensee's estimated monthly tax, ascertained in a manner deemed proper by the department.  The total amount of the bond or bonds required of any farm winery or direct shipment licensee shall not be less than five hundred dollars.

C. A farm winery or direct shipment licensee is exempt from the requirements of this section if the farm winery or direct shipment licensee has made timely payment of any taxes imposed by this chapter for the twelve consecutive months immediately preceding the current month.
A.R.S. § 42-12052 — Arizona Code / Title 42 / Chapter 12 / Article 2 / Section 12052
42-12052 Review and verification of class three property; civil penalty; appeals
Status: in_force

42-12052. Review and verification of class three property; civil penalty; appeals

A. Each county assessor shall review assessment information, on a continuing basis, to ensure proper classification of residential dwellings. The assessor may enter into intergovernmental agreements with the department for an exchange of information to ensure a coordinated and comprehensive review and identification of property that may be rented while classified as class three pursuant to section 42-12003.

B. If the assessor has reason to believe that a parcel of property that is classified as class three pursuant to section 42-12003 is not the owner's primary residence or as a qualifying family member residence pursuant to section 42-12053, the assessor shall notify the owner, in a form prescribed by the department as provided by subsection D of this section, and request that the owner respond as to whether the property meets the requirements of section 42-12003 or 42-12053, is a secondary residence or is used as a rental property.  If the owner fails to respond to the assessor within thirty days after the notice is mailed, the assessor shall mail the owner a final notice within thirty days requesting that the owner provide information as to whether the property meets the requirements of a primary residence, a secondary residence or is used as a rental property.  If the owner fails to respond to the assessor within fifteen days after the final notice is mailed, the assessor shall:

1. Reclassify the property as class four.  In addition to other appeal procedures provided by law, the owner of the property that is reclassified as class four under this paragraph may appeal the reclassification to the county board of supervisors within thirty days after the notice of classification is mailed.  If the owner proves to the board's satisfaction that the property is occupied as the owner's primary residence, the board shall order the property to be reclassified as class three property pursuant to section 42-12003.

2. Notify the county treasurer, who shall assess a civil penalty against the property equal to the amount of additional state aid paid pursuant to section 15-972 with respect to the property in the preceding tax year. The civil penalty shall not be assessed if the ownership of the property has changed after notification.  The owner of the property shall pay a penalty under this paragraph to the county treasurer within thirty days after the notice of the penalty is mailed.  The owner may appeal the penalty to the county board of supervisors within the time required for payment. If the owner proves to the board's satisfaction that the property is occupied by the owner, the board shall waive the penalty, and the property shall be listed as class three pursuant to section 42-12003. Until paid or waived, the penalty constitutes a lien against the property. The county treasurer shall deposit all revenue received from penalties assessed under this paragraph in the county general fund.

C. Beginning in 2013 and during each elective term of office thereafter, the county assessor shall send notices under subsection B of this section to each owner of property classified as class three pursuant to section 42-12003 described by any of the following:

1. The owner has a mailing address outside the county in which the property is located.

2. The owner has a mailing address, other than a post office box, that is different than the situs address of the property.

3. The owner has the same mailing address listed for more than one parcel of class three property in this state.

4. The owner appears to be a business entity.

D. The department shall:

1. Prescribe all forms used to notify property owners under this section. The forms shall contain information as to criteria for the reclassification of property and the civil penalties that may result if the owner fails to respond to the notice.

2. Monitor and review the procedures and practices used by assessors and treasurers to accomplish the verification of class three property and the assessment and collection of penalties prescribed by this section and propose suggested improvements to establish uniform processes and performance among the counties.

E. The department may inspect the records of county assessors and county treasurers to determine compliance with the requirements of this section and the accuracy of the classification of owner-occupied residential property and rental property.
A.R.S. § 42-6018 — Arizona Code / Title 42 / Chapter 6 / Article 1 / Section 6018
42-6018 Distribution of revenues for county stadium district from cities and towns; notice; limit; definitions
Status: in_force

42-6018. Distribution of revenues for county stadium district from cities and towns; notice; limit; definitions

(Rpld. 4/1/55)

A. Subject to section 48-4238 and subsection D of this section, beginning the first month following September 26, 2025 and each month thereafter through March 31, 2056, each city and town shall transmit the amount determined under subsection B of this section to the county stadium district established pursuant to title 48, chapter 26 for deposit in the county stadium district fund established pursuant to section 48-4231. The department shall notify the city or town of the amount determined pursuant to subsection B of this section each month, and the city or town shall transmit the monies within thirty days after receiving the notice.

B. The amount to be transmitted under subsection A of this section is the amount determined by the department to be the first two percent of the rate of transaction privilege, sales, use, franchise or other similar tax or fees collected on behalf of the city or town for taxable periods beginning October 1, 2025 through December 31, 2055 from persons engaged in the following business activities at, or with respect to events held at, a major league baseball facility or an adjacent building that is owned by a county stadium district pursuant to title 48, chapter 26 and operated by the county stadium district or the professional baseball franchise organization that occupies the major league baseball facility or adjacent building:

1. Selling tangible personal property at retail.

2. Operating or conducting theaters, movies, operas, shows of any type or nature, exhibitions, concerts, carnivals, circuses, amusement parks, menageries, fairs, races, contests, games, billiard or pool parlors, bowling alleys, public dances, dance halls, boxing and wrestling matches, skating rinks, tennis courts, video games, pinball machines or sports events or any other business charging admission or user fees for exhibition, amusement or entertainment.

3. Operating a restaurant, dining car, dining room, lunchroom, mobile food unit, lunch stand, soda fountain, catering service or similar establishment where articles of food or drink are sold for consumption on or off the premises.

4. Prime contracting.

C. For the purposes of this section and subject to section 48-4238, beginning October 1, 2025 and each month thereafter through December 31, 2055, the department shall separately account for revenues collected from each business prescribed in subsection B of this section on the premises of a major league baseball facility or an adjacent building that is owned by a county stadium district pursuant to title 48, chapter 26 and operated by the county stadium district or the professional baseball franchise organization that occupies the major league baseball facility or adjacent building.

D. The total amount transmitted under this section may not exceed $3,500,000 each year as increased pursuant to subsection E of this section. If the limit prescribed by this subsection is met, the city or town shall stop transmitting monies pursuant to this section until the following year.

E. Beginning from and after December 31, 2026 through December 31, 2055, each city or town shall annually increase the limit prescribed by subsection D of this section by three percent.

F. For the purposes of this section, "adjacent building" and "major league baseball facility" have the same meanings prescribed in section 48-4201.
A.R.S. § 42-15152 — Arizona Code / Title 42 / Chapter 15 / Article 4 / Section 15152
42-15152 Inclusion of all property on the roll
Status: in_force

42-15152. Inclusion of all property on the roll

A. In addition to all other property that is required by law to be placed on the roll, all real property that is subject to the jurisdiction of this state, regardless of ownership or by whom it is claimed, possessed or controlled, and regardless of whether it is exempt from taxation by law or by the Constitution of Arizona, shall be listed on the roll in the manner prescribed by this article. This subsection does not alter any statute or constitutional provision relating to property that is exempt from taxation.

B. The roll shall also include the total personal property tax roll as provided in section 42-17053.
A.R.S. § 42-12002 — Arizona Code / Title 42 / Chapter 12 / Article 1 / Section 12002
42-12002 Class two property
Status: in_force

42-12002. Class two property

For purposes of taxation, class two is established consisting of three subclasses:

1. Class two (R) consists of:

(a) Real property and improvements to property that are used for agricultural purposes and that are valued at full cash value or pursuant to chapter 13, article 3 of this title, as applicable.

(b) Real property and improvements to property that are primarily used for agricultural purposes to produce trees other than standing timber, vines, rosebushes, ornamental plants or other horticultural crops, regardless of whether the crop is grown in containers, soil or any other medium, that are not included in class one, three, four, six, seven or eight and that are valued at full cash value or pursuant to chapter 13, article 3 of this title, as applicable.

(c) Real property and improvements to property that are owned and controlled by a nonprofit organization that is exempt from taxation under section 501(c)(3), (4), (7), (10) or (14) of the internal revenue code if the property is not used or intended for the financial benefit of members of the organization or any other individual or organization, unless the financial benefit is for charitable, religious, scientific, literary or educational purposes, and that are valued at full cash value.

(d) Real property of golf courses that is valued at full cash value or pursuant to chapter 13, article 4 of this title.

(e) Real property and improvements to property of a guest ranch that meets the requirements prescribed in chapter 13, article 12 of this title, that are not included in class four and that are valued at full cash value.

(f) All other real property and improvements to property, if any, that are not included in class one, three, four, six, seven or eight and that are valued at full cash value.

2. Class two (P) consists of:

(a) Personal property that is used for agricultural purposes and that is valued at full cash value or pursuant to chapter 13, article 3 of this title, as applicable.

(b) Personal property that is primarily used for agricultural purposes to produce trees other than standing timber, vines, rosebushes, ornamental plants or other horticultural crops, regardless of whether the crop is grown in containers, soil or any other medium, that is not included in class one, three, four, six, seven or eight and that is valued at full cash value or pursuant to chapter 13, article 3 of this title, as applicable.

(c) Personal property that is owned and controlled by a nonprofit organization that is exempt from taxation under section 501(c)(3), (4), (7), (10) or (14) of the internal revenue code if the property is not used or intended for the financial benefit of members of the organization or any other individual or organization, unless the financial benefit is for charitable, religious, scientific, literary or educational purposes, and that is valued at full cash value.

(d) Personal property of golf courses that is valued at full cash value or pursuant to chapter 13, article 4 of this title.

(e) Personal property of a guest ranch that meets the requirements prescribed in chapter 13, article 12 of this title and that is not included in class four and that is valued at full cash value.

(f) All other personal property that is not included in class one, three, four, six, seven or eight and that is valued at full cash value.

3. Class two (C) consists of real property, and improvements to real property, that is burdened by a conservation easement that has been created and is currently in effect pursuant to title 33, chapter 2, article 4.
A.R.S. § 42-18108 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18108
42-18108 Personal notice of proposed sale
Status: in_force

42-18108. Personal notice of proposed sale

The county treasurer shall mail a copy of the notice of proposed sale to the owner of each parcel of property on the delinquent tax list at the owner's last known address.
A.R.S. § 42-5163 — Arizona Code / Title 42 / Chapter 5 / Article 4 / Section 5163
42-5163 Personal liability for tax; remedies for collection
Status: in_force

42-5163. Personal liability for tax; remedies for collection

Every tax imposed by this article and all increases, interest and penalties thereon shall become, from the time they are due and payable, a personal debt of the taxpayer to the state, and may be collected by action in tax court instituted in the name of the state by the attorney general upon request of the director. Such remedy shall be in addition to other existing remedies or those provided in this article.
A.R.S. § 42-13354 — Arizona Code / Title 42 / Chapter 13 / Article 8 / Section 13354
42-13354 Assessing personal property construction work in progress; definition
Status: in_force

42-13354. Assessing personal property construction work in progress; definition

A. The county assessor shall not value or assess personal property construction work in progress until the construction work has progressed to a sufficient degree for the personal property to be useful for the purposes for which it is being constructed.

B. For the purposes of this section, "personal property construction work in progress" means the amount spent and entered on the taxpayer’s accounting records as of December 31 of the preceding calendar year as construction work in progress.
A.R.S. § 42-6014 — Arizona Code / Title 42 / Chapter 6 / Article 1 / Section 6014
42-6014 Municipal jet fuel excise tax
Status: in_force

42-6014. Municipal jet fuel excise tax

The area of taxation of jet fuel, as defined in section 42-5351, is a matter of statewide concern.  Any municipal tax on jet fuel is subject to the following limits and requirements:

1. The application of the tax is limited to amounts of not more than ten million gallons of jet fuel purchased by each purchaser in each calendar year. The levy and measure of the tax must be structured to affirmatively exempt purchases in excess of ten million gallons per purchaser per year.

2. Beginning from and after November 30, 2017, the revenues generated by each public airport must be segregated in separate accounts for the exclusive expenditure for the capital or operating costs of the airport, the airport system or other local airport facilities owned or operated by the municipality and directly and substantially related to the air transportation of passengers or property.
A.R.S. § 42-18105 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18105
42-18105 Limitation on sale for unpaid tax; exceptions
Status: in_force

42-18105. Limitation on sale for unpaid tax; exceptions

No sale for an unpaid tax may be commenced at a date later than five years after delinquency unless:

1. The sale is advertised within the five year period.

2. The failure to advertise within five years of the delinquency is due to a restraining order or injunction issued by a court of competent jurisdiction.
A.R.S. § 42-15153 — Arizona Code / Title 42 / Chapter 15 / Article 4 / Section 15153
42-15153 Completion and delivery of property lists and assessment roll; use of lists by administrative appeals bodies
Status: in_force

42-15153. Completion and delivery of property lists and assessment roll; use of lists by administrative appeals bodies

A. On or before December 20 of each year, the county assessor shall complete the assessment roll and attach the assessor's certificate to the roll with a cross-index of all property listed in the roll, showing the ownership of the property and all assessment lists from which the roll was compiled.

B. The assessor shall deliver the lists and certified roll to the clerk of the board of supervisors who shall file them in the clerk's office.

C. The county board of equalization and the state board of equalization may use the lists for any lawful purpose.
A.R.S. § 42-2304 — Arizona Code / Title 42 / Chapter 2 / Article 7 / Section 2304
42-2304 Interest and penalties; refunds
Status: in_force

42-2304. Interest and penalties; refunds

A. Notwithstanding section 42-1125, the director shall not assess any penalties unless the managed audit discloses that the taxpayer committed fraud or wilful tax evasion or that the taxpayer collected monies that were represented as tax but were not remitted to the state.

B. Notwithstanding section 42-1123, the director shall not assess interest if the managed audit results in a deficiency, if the taxpayer pays the tax within forty-five days of receipt of the notice of determination and the taxpayer did not commit the activities described in subsection A of this section.  If the entire assessment is paid after forty-five days of the taxpayer's date of receipt of the notice of determination, the taxpayer shall pay interest pursuant to section 42-1123.

C. If the findings of a managed audit determine that a refund is due to the taxpayer, the department shall not pay interest to the taxpayer if the refund is issued within forty-five days of the taxpayer’s date of receipt of the notice of determination.  If the refund is paid after forty-five days of the taxpayer’s date of receipt of the notice of determination, the department shall pay interest pursuant to section 42-1123.

D. For the purposes of subsections B and C of this section, "notice of determination" means either:

1. The director’s notice of determination, if not appealed.

2. The final decision at the highest level of appeal to which the matter is taken, if a notice of determination or rejection is appealed.
A.R.S. § 42-11153 — Arizona Code / Title 42 / Chapter 11 / Article 4 / Section 11153
42-11153 Deadline for filing affidavit
Status: in_force

42-11153. Deadline for filing affidavit

A. A failure by a taxpayer who is entitled to an exemption to make an initial affidavit as required by section 42-11152 or furnish evidence required by this article between the first Monday in January and March 1 of the year constitutes a waiver of the exemption.

B. If a widow or widower or a person with a disability whose property is exempt from tax under section 42-11111, or an organization that is exempt from federal income tax under section 501(c) of the internal revenue code and is exempt from property tax under article 3 of this chapter, submits a petition after the deadlines prescribed by subsection A of this section, the person or organization may have the waiver redeemed by the county board of supervisors at any regular meeting, except that taxes that were due and payable before the petition was submitted may not be refunded or abated.
A.R.S. § 42-1051 — Arizona Code / Title 42 / Chapter 1 / Article 2 / Section 1051
42-1051 Definitions
Status: in_force

42-1051. Definitions

In this article, unless the context otherwise requires:

1. "State" means the District of Columbia and any state, territory or possession of the United States.

2. "Tax" means:

(a) Assessments lawfully made, whether based on a return or other disclosure of the taxpayer, upon the information and belief of the taxing authority, or otherwise.

(b) Penalties lawfully imposed pursuant to a taxing statute.

(c) Interest charges lawfully added to the tax liability which constitutes the subject of the action.
A.R.S. § 42-18125 — Arizona Code / Title 42 / Chapter 18 / Article 3 / Section 18125
42-18125 Erroneous sales
Status: in_force

42-18125. Erroneous sales

If by mistake or wrongful act of the county treasurer, recorder or assessor, or as a result of double assessment, a real property tax lien is sold on property on which no tax is due, the county treasurer shall hold the purchaser harmless by paying the purchaser the amount of the principal and interest at the rate bid and endorsed on the certificate of purchase or ten per cent per year simple, whichever is less.
A.R.S. § 42-18004 — Arizona Code / Title 42 / Chapter 18 / Article 1 / Section 18004
42-18004 Transmitting statement of taxes due state to state treasurer
Status: in_force

42-18004. Transmitting statement of taxes due state to state treasurer

Within ten days after the board of supervisors adopts the resolution for collection of taxes levied in the annual roll, the clerk of the board shall transmit to the state treasurer a written statement showing the amount of taxes due the state and contained in the annual roll, as appears from the data entered by the board.
A.R.S. § 42-11151 — Arizona Code / Title 42 / Chapter 11 / Article 4 / Section 11151
42-11151 Procedure, affidavits and forms
Status: in_force

42-11151. Procedure, affidavits and forms

The department shall prescribe the procedure, affidavits and forms that are required to effectuate the property tax exemptions prescribed by article IX, Constitution of Arizona, and article 3 of this chapter.
A.R.S. § 42-5032.01 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5032.01
42-5032.01 Distribution of revenues for tourism and sports authority
Status: in_force

42-5032.01. Distribution of revenues for tourism and sports authority

A. Each month the state treasurer shall pay, from the amount designated as distribution base pursuant to section 42-5029, subsection D, the amount determined under subsection B of this section to the tourism and sports authority for deposit in the authority's facility revenue clearing account established by section 5-834.

B. The amount to be paid under subsection A of this section is the total amount of state transaction privilege tax revenues received from persons conducting business under:

1. The retail, amusement and restaurant classifications at, or with respect to events held at, a multipurpose facility that is owned or operated by the authority pursuant to title 5, chapter 8.

2. The retail, amusement and restaurant classifications at, or with respect to, professional football contests that are held beginning July 2001 in a stadium located on the campus of an institution under the jurisdiction of the Arizona board of regents.

C. Each month the state treasurer shall pay, from the amount designated as distribution base pursuant to section 42-5029, subsection D, the total amount of state transaction privilege tax revenues received from persons conducting business under the prime contracting classification at a multipurpose facility that is owned or operated by the tourism and sports authority pursuant to title 5, chapter 8 for deposit in the authority's construction account established by section 5-833.
A.R.S. § 42-2077 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2077
42-2077 Distribution of tax decisions; definitions
Status: in_force

42-2077. Distribution of tax decisions; definitions

A. Beginning October 1, 2006, the agencies listed in this section shall provide tax decisions to the law libraries of Maricopa county, the Arizona state university college of law, the university of Arizona college of law, the state law library and the Arizona state library, archives and public records as follows:

1. Each redacted tax decision issued during the preceding calendar quarter shall be provided by:

(a) The department of revenue.

(b) The office of administrative hearings.

(c) The municipal tax hearing office or any other city or town tax hearing office.

(d) The department of economic security.

(e) The department of transportation.

2. Each tax decision issued during the preceding calendar quarter shall be provided by the state board of tax appeals.

B. At the same time as the decisions are issued pursuant to subsection A, each agency shall publish the decisions on its official web site.

C. Any person may file an original action in tax court, or in superior court in any county against an agency listed in subsection A, paragraphs 1 and 2, to enforce this section.

D. The supreme court shall adopt rules to establish a procedure to distribute tax memorandum decisions to the general public and determine what memorandum decisions are appropriate for distribution.  A memorandum decision is a written disposition of a matter by a court in this state that is not intended for publication as defined by rule 28(2)(4) of the Arizona rules of civil appellate procedure.

E. For the purposes of this section:

1. "Redacted tax decision" means a tax decision that has the name, identification number and address of the taxpayer, the amount of tax, penalty and interest in dispute and other information that will allow identification of the taxpayer deleted from the text of the decision.

2. "Tax" includes any tax arising under title 5, chapters 1, 2, 3 and 4, title 23, chapters 4 and 6, titles 20, 28, 43 and 48 and this title.

3. "Tax decision" means a ruling, decision, opinion, minute entry, under advisement ruling, memorandum decision or any other written resolution of a state, county or municipal tax dispute or appeal that involves a substantive or significant technical or procedural issue and includes actions taken by:

(a) The department of revenue hearing officer.

(b) The office of administrative hearings.

(c) The municipal tax hearing officer or any other city or town hearing officer.

(d) The state board of tax appeals.

(e) The department of economic security appeals board.

(f) The department of transportation.
A.R.S. § 42-12153 — Arizona Code / Title 42 / Chapter 12 / Article 4 / Section 12153
42-12153 Application for classification of property used for agricultural purposes
Status: in_force

42-12153. Application for classification of property used for agricultural purposes

A. The county assessor shall make agricultural use application forms available that require the following information in addition to any other information prescribed by the department:

1. The size of the property.

2. The type of crops grown on the property.

3. The type and number of animal units raised on the property.

4. The number of acres leased for agricultural purposes and the terms of the lease for each parcel leased.

5. A verification that the property meets the requirements prescribed in section 42-12152.

B. The owner of property or the owner's designated agent under section 42-16001 shall file a completed agricultural use application form with the county assessor before the property may be classified as being used for agricultural purposes. If the ownership of a property changes, an agricultural use application form must be filed by the new owner within sixty days after the change in ownership to maintain the agricultural use status. If the owner or the owner's agent fails to file an application form as prescribed in this subsection, the assessor shall not classify the property, on notice of valuation, as being used for agricultural purposes. The owner or agent may appeal the classification as prescribed by chapter 16, article 2 or 5 of this title regardless of whether the owner or agent filed an application form.
A.R.S. § 42-14205 — Arizona Code / Title 42 / Chapter 14 / Article 5 / Section 14205
42-14205 Adjustments to base value to reflect market value
Status: in_force

42-14205. Adjustments to base value to reflect market value

To accurately assess ongoing business operations, income and property, the department shall adjust the base value used to determine the full cash value of pipeline property as necessary to reflect changed circumstances. The circumstances that require adjustments to the base value are as follows:

1. There is a final ruling by a court of competent jurisdiction in this state that the full cash value of a pipeline in this state using the method prescribed by section 42-14204 is more than the market value of the pipeline property using standard appraisal methods and techniques. In such cases, the final full cash value of the system plant in service determined by the court for the most recent tax year involved in any such tax appeal is the base value for the subsequent tax year, and the department shall adjust all valuations for future years pursuant to section 42-14204.

2. There is an agreement between a pipeline company and the department that is the result of a pending tax appeal, in which the parties enter into a binding stipulation, approved by a court of competent jurisdiction, to adjust the full cash value of the system plant in service as of a specific valuation date.  In such cases, the department shall adjust the base value as set forth in the stipulation.

3. There is an agreement between a pipeline company and the department to correct an error in the calculation of the full cash value of the system plant in service for a pipeline that operates in this state. In such cases, the department shall adjust the base value as set forth in the agreement. Any agreement to adjust the base value to correct such an error shall be in writing and signed by the director and an officer of the pipeline company before the base value is adjusted.
A.R.S. § 42-11123 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11123
42-11123 Exemption for animal and poultry feed
Status: in_force

42-11123. Exemption for animal and poultry feed

Animal and poultry feed, including salts, vitamins and other additives, for animal or poultry consumption is exempt from taxation.
A.R.S. § 42-19115 — Arizona Code / Title 42 / Chapter 19 / Article 3 / Section 19115
42-19115 Return of sale; distribution of proceeds
Status: in_force

42-19115. Return of sale; distribution of proceeds

A. The sheriff shall make return of the tax bill on or before the tenth day of the month following the sale and, if the property is sold to a person other than the county, shall pay to the county treasurer the total amount of all monies received.

B. The treasurer shall distribute the proceeds to the proper funds. The costs shall be placed in the county expense fund. Any balance remaining with the treasurer after payment of the taxes, interest and costs shall be paid to the owner of the personal property who was dispossessed by the sale.
A.R.S. § 42-17153 — Arizona Code / Title 42 / Chapter 17 / Article 4 / Section 17153
42-17153 Lien for taxes; time lien attaches; priority
Status: in_force

42-17153. Lien for taxes; time lien attaches; priority

A. Except as provided in subsection B of this section, a tax that is levied on real or personal property is a lien on the assessed property.

B. A tax that is levied against personal property of a person who owns real property of a value of less than two hundred dollars in the county is a personal liability of the property owner, in addition to being a lien against the property.

C. The lien:

1. Attaches on January 1 of the tax year.

2. Is not satisfied or removed until one of the following occurs:

(a) The taxes, penalties, charges and interest are paid.

(b) Title to the property has finally vested in a purchaser under a sale for taxes.

(c) A certificate of removal and abatement has been issued pursuant to section 42-18353.

3. Is prior and superior to all other liens and encumbrances on the property, except:

(a) Liens or encumbrances held by this state.

(b) Liens for taxes accruing in any other years.

D. For taxpayers valued by the department pursuant to section 42-14151, the lien shall attach to all property, real and personal, regardless of the taxing jurisdiction where such property is located.  Such lien will attach to the entire system and may not be released by payment of a portion of the tax liability relating to a single portion or component of the system.

E. If a political subdivision of this state acquires title to property after December 31, 1998, any lien for delinquent taxes on the property:

1. Is not abated, extinguished, discharged or merged in the title to the property unless approved by the county board of supervisors.

2. Is enforceable in the same manner as other delinquent tax liens.
A.R.S. § 42-11003 — Arizona Code / Title 42 / Chapter 11 / Article 1 / Section 11003
42-11003 Double taxation prohibited
Status: in_force

42-11003. Double taxation prohibited

This title shall not be construed to require or permit double taxation.
A.R.S. § 42-1007 — Arizona Code / Title 42 / Chapter 1 / Article 1 / Section 1007
42-1007 Service of process upon the director
Status: in_force

42-1007. Service of process upon the director

If an action is commenced against the department, a copy of the summons and the complaint or the notice of appeal, whichever is applicable, shall be served upon the director to effect service upon the department.
A.R.S. § 42-16162 — Arizona Code / Title 42 / Chapter 16 / Article 4 / Section 16162
42-16162 Decision of the state board
Status: in_force

42-16162. Decision of the state board

A. Based on the evidence presented at a hearing on an appeal, the state board shall either grant or refuse the request of the petition, in whole or in part, as the state board considers just and proper. The decision of the state board shall not exceed the assessor's noticed valuation and recommended classification.  A decision by the state board does not limit a party from appealing the decision in a manner prescribed by law. The state board may increase individual parcels within an economic unit in a multiple parcel appeal when considering the equitable valuation of an economic unit not to exceed the total aggregate valuation of the multiple parcel appeal on the agreement of both parties.

B. In considering any petition filed by any person, the state board shall review and consider all competent evidence relating to full cash value, including, if presented, the valuation of similar property that is similarly situated.
A.R.S. § 42-5013 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5013
42-5013 Partnerships
Status: in_force

42-5013. Partnerships

A. All taxes levied under this article upon the business activities of a partnership shall be a liability and charge against each and all of the partners, but when the tax is paid by the partnership the liability against each and all of the partners shall terminate.

B. Licenses issued to persons engaged in business as partners shall be in the name of the partnership.
A.R.S. § 42-15105 — Arizona Code / Title 42 / Chapter 15 / Article 3 / Section 15105
42-15105 Supplemental notice and appeal of valuation or classification in case of new construction, changes to assessment parcels and changes in use
Status: in_force

42-15105. Supplemental notice and appeal of valuation or classification in case of new construction, changes to assessment parcels and changes in use

For property that is valued by the assessor, in the case of new construction, additions to, deletions from or splits or consolidations of assessment parcels and changes in property use that occur after September 30 of the preceding year and before October 1 of the valuation year:

1. The assessor shall notify the owner of the property of any change in the valuation or legal classification on or before September 30 of the valuation year.

2. Within twenty-five days after the date of the assessor's notice, the property owner may appeal the valuation or legal classification to the state board of equalization if the property is located in a county with a population of five hundred thousand persons or more or to the county board of equalization if the property is located in any other county.
A.R.S. § 42-3403 — Arizona Code / Title 42 / Chapter 3 / Article 10 / Section 3403
42-3403 Tobacco product retailers; vehicle as place of business prohibited; exceptions
Status: in_force

42-3403. Tobacco product retailers; vehicle as place of business prohibited; exceptions

A. A retailer may sell any tobacco product that is not otherwise prohibited by federal or state law from sale for resale, but a retailer may not acquire or possess unstamped cigarettes, or other tobacco products or cigarettes on which taxes levied under this chapter have not been paid, unless the retailer holds a valid license issued under section 42-3401.

B. A person may not use a vehicle as a place of business for selling, transferring or otherwise distributing tobacco products. This subsection does not prohibit the lawful delivery of other tobacco products by a person who holds a valid license issued under section 42-3401, or by that person's representative, using a vehicle that is owned, operated or contracted by that person or that person's representative.  That person or that person's representative is expressly allowed to use such a vehicle to carry and store tax-paid other tobacco products in the normal course of performing the person's or the person's representative's duties, including for the purpose of selling other tobacco products to, and performing similar lawful transactions with, retailers and distributors. If a vehicle is used by a licensed distributor to carry and store tax-paid other tobacco products, as a condition of licensure, the distributor shall provide written consent and allow access to the department to inspect the stock of luxuries and all books, papers, invoices, records and electronically stored data showing sales, receipts and purchases of luxuries. The distributor shall submit the written consent to the department with the license application or on demand of the department.

C. This section does not prohibit business activities that are allowed under sections 42-3454 and 42-3502 for both taxed and untaxed tobacco products.
A.R.S. § 42-11103 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11103
42-11103 Exemption for government bonded indebtedness; application of procedural provisions
Status: in_force

42-11103. Exemption for government bonded indebtedness; application of procedural provisions

A. Public debts as evidenced by the bonds of this state, counties, municipalities and other political subdivisions are exempt from taxation.

B. Article 4 of this chapter does not apply to the exemption from taxation for public debts that are evidenced by bonds.
A.R.S. § 42-1103 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1103
42-1103 Enjoining delinquent taxpayer from engaging or continuing in business
Status: in_force

42-1103. Enjoining delinquent taxpayer from engaging or continuing in business

A. In order to ensure or to compel payment of taxes and to aid in enforcing this article, the director may apply to the tax court to enjoin any delinquent taxpayer or person who may be or may become liable for payment of any tax from engaging or continuing in business until the person ceases to be a delinquent taxpayer or complies with other requirements which are reasonably necessary to protect the revenues of this state and which are prescribed by the director.

B. On application for an injunction against a delinquent taxpayer, the court may forthwith issue an order temporarily restraining the taxpayer from doing business. The court shall hear the matter within three days and, on a showing by a preponderance of evidence that the taxpayer is delinquent and has been given notice of the hearing as required by law, the court may enjoin the taxpayer from engaging or continuing in business in this state until the taxpayer ceases to be delinquent. On issuing an injunction, the court may also order the sheriff to seal the taxpayer's business premises and may allow the taxpayer access to the premises only on the approval of the court.

C. On application for an injunction against a person other than a delinquent taxpayer, the court may issue an order temporarily restraining the person from engaging or continuing in business. The court shall hear the matter within three days and on a showing that the person has been given notice of the hearing as required by law, that demand has been made on the taxpayer to furnish security, that the taxpayer has not furnished security and that the director considers the collection from the primarily responsible person of the total amount of tax due or reasonably expected to become due to be in jeopardy, the court may forthwith enjoin the person from engaging or continuing in business until the person complies in full with the demand of the director for furnishing security.

D. The court shall not issue a temporary restraining order or injunction under this section against any person who has furnished security pursuant to section 42-1102, 42-5006 or 42-5007. On a showing to the court by any person against whom a temporary restraining order or injunction has issued under this section that the person has furnished such security, the court shall dissolve or set aside the temporary restraining order or injunction.
A.R.S. § 42-13203 — Arizona Code / Title 42 / Chapter 13 / Article 5 / Section 13203
42-13203 Replacement cost less depreciation method of valuing shopping centers; election to use income method on appeal
Status: in_force

42-13203. Replacement cost less depreciation method of valuing shopping centers; election to use income method on appeal

A. Except as provided by section 42-13204, the county assessor shall determine the valuation of a shopping center by using the replacement cost less depreciation method.

B. This method shall use base rates in existence on January 1, 1982 subject to any changes that are necessary to reflect changes in costs of construction. The base rates shall be based on average costs that relate to this state as reported in professional cost manuals and publications that are approved by the department.

C. The depreciation schedule used under the replacement cost less depreciation method, including any adjustment for obsolescence, shall be the schedule in existence on January 1, 1982 and used by the county assessor.

D. On review or appeal of a valuation determined under this section, the owner of a shopping center may elect to have the valuation of the shopping center determined by the income method commonly known as the straight line building residual method if the owner submits all reasonably necessary income and expense information. The reviewing body shall use the information submitted by the owner and may also use any other information customarily analyzed under this method. The capitalization rate used for purposes of this subsection shall be comprised of:

1. For the 1983 tax year a discount rate of 10.5 per cent, adjusted each year thereafter according to the percentage change in the weighted average cost of monies derived from interest paid on savings accounts, federal home loan bank advances and other borrowed money as reported by the federal home loan bank of San Francisco for this state for the most recent twelve month period ending June 30. The discount rate shall not be less than ten per cent.

2. A recapture rate based on a thirty-five year economic life.

3. The effective tax rate for the property for the most recent tax year.

E. The department shall:

1. Determine the average differences in valuations for similar size and age shopping centers that result from the two valuation methods prescribed by this section and section 42-13204 and from which the department shall develop a schedule of obsolescence factors that can be added to the depreciation schedule used in the replacement cost less depreciation method. County assessors shall incorporate the obsolescence factors into the depreciation schedule.

2. Develop obsolescence factors prescribed by paragraph 1 of this subsection based on statistical research in order to, on average, equalize the valuations that result from the two valuation methods prescribed in this section and section 42-13204.  The department may use data from state sources, nationally recognized publications and journals and other related research.
A.R.S. § 42-1153 — Arizona Code / Title 42 / Chapter 1 / Article 4 / Section 1153
42-1153 Release or subordination of lien
Status: in_force

42-1153. Release or subordination of lien

A. The department, at any time, may release all or any portion of the property subject to the lien from the lien or subordinate the lien to other liens if it determines that either:

1. The taxes are sufficiently secured by a lien on other property of the taxpayer.

2. The release or subordination of the lien will not endanger or jeopardize the collection of such taxes.

B. In its discretion and at any time, the department may withdraw a notice of lien that was recorded pursuant to this article if the department determines that any of the following conditions applies:

1. The department's interests are best served by withdrawing the notice.

2. Filing the lien was premature or otherwise in violation of the department's administrative procedures.

3. Withdrawing the notice will facilitate collecting the outstanding amount of taxes, interest and penalties.

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

C. If any lien imposed by section 42-1151 has been satisfied and a notice of the lien had been recorded by the department pursuant to section 42-1152, the department shall issue a release of the lien to the person against whom the lien was claimed. The department shall record the lien release in any county where the original lien was recorded and in the office of the secretary of state if applicable.

D. If a balance owed by a taxpayer has been abated pursuant to section 42-1004, subsection B, paragraph 1, subdivision (a), the department is not required to record a release of the lien under this section, but on the taxpayer's written request, the department shall provide a certificate of release to the taxpayer.

E. A certificate by the department to the effect that any property has been released from the lien or that the lien has been subordinated to other liens is conclusive evidence that the property has been released or that the lien has been subordinated as provided in the certificate.
A.R.S. § 42-11102 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11102
42-11102 Exemption for government property; application of procedural provisions
Status: in_force

42-11102. Exemption for government property; application of procedural provisions

A. Federal, state, county and municipal property is exempt from taxation, including:

1. Property that is owned by a nonprofit organization but is used by this state or a political subdivision during the entire tax year exclusively for a governmental activity.

2. Property that is the subject of a lease-purchase agreement that is authorized by law and in which this state or a political subdivision is the lessee-purchaser and the property is used by this state or a political subdivision during the entire taxable year exclusively for a governmental activity.

3. Improvements that are placed on public lands held under grazing permits, the title to which passes to the federal government.

B. Article 4 of this chapter does not apply to the exemption from taxation for federal, state, county and municipal property.

C. Notwithstanding subsection A relating to state property, property that is owned by the Arizona state retirement system, the corrections officer retirement plan, the public safety personnel retirement system or the elected officials' retirement plan, that is not used during the entire taxable year exclusively for a governmental activity and that is acquired either by foreclosure of an authorized investment or for the purposes of producing income for the system or plan is subject to either a government property lease tax under chapter 6, article 5 of this title or, if a government property lease tax is not paid or is not economically feasible, to voluntary contributions of money to the county, municipality, school district and community college district and any other special taxing district in which the property is located in lieu of taxes otherwise levied by those entities. The system or plan may not continue to hold title to the property as an authorized investment under title 38 unless a tax or voluntary contribution is paid pursuant to this subsection. On or before April 1 of each year the plan or system shall notify the county assessor of the county in which the property is located whether a government property lease tax or voluntary contribution will be paid. If a tax is not economically feasible, the county assessor may require the plan or system to pay voluntary contributions.  If the system or plan pays a voluntary contribution:

1. The assessor shall determine the full cash value of the property at market value and shall transmit that determination to the board of supervisors on or before the third Monday in June.

2. On or before the third Friday in September the assessor shall compute the contribution to be made based on the determined valuation using the method of assessment applied in assessing ad valorem taxes of properties of similar character and devoted to the same use in the county for the current tax year.

3. The assessor shall:

(a) Submit the computation of the contribution to the board of supervisors at the same time that the assessor submits the assessment roll.

(b) Notify the county school superintendent of the amount of the contribution.

4. The plan or system shall pay one-half of the amount determined not later than the first Monday in November and the other one-half not later than the first Monday in May of the next year.

5. The county treasurer shall distribute the monies received to the various taxing jurisdictions in the same manner as property taxes are distributed.

6. Any person, public official or taxing entity that is not satisfied by a determination under this subsection has the same remedies provided by this title or may file a civil action to determine the correct amount due. In any such action the only issue shall be the correctness of the computation of the amount due.
A.R.S. § 42-15063 — Arizona Code / Title 42 / Chapter 15 / Article 2 / Section 15063
42-15063 Assessing livestock; lien
Status: in_force

42-15063. Assessing livestock; lien

A. Except as provided in section 42-11126, range livestock shall be assessed, and the taxes levied against the livestock shall be collected, as taxes on real property.

B. The assessment constitutes a lien for taxes on all livestock under the same brand. If the owner of a brand sells any range livestock less than the entire number under the brand before the taxes are due, the owner may pay the tax on the number sold proportioned to the number assessed under the brand.  That amount shall be credited on the amount due under the assessment against livestock under that brand, and the number sold are thereupon released from the lien.
A.R.S. § 42-17311 — Arizona Code / Title 42 / Chapter 17 / Article 7 / Section 17311
42-17311 Events requiring payment of deferred tax
Status: in_force

42-17311. Events requiring payment of deferred tax

A. The total amount of deferred property taxes, plus interest and costs, that has accrued with respect to a tax deferred residence is due and payable if:

1. The individual who claimed the deferral dies without a surviving spouse who qualifies under section 42-17302.

2. The tax deferred residence is sold or becomes subject to a fully executed, binding contract of sale or title to the residence is otherwise transferred to persons other than the individual or the individual's spouse who qualifies under section 42-17302. A tax deferred residence may not be transferred or conveyed unless the deferred property taxes, interest and costs are paid in full.

3. The residence is no longer the residence of the individual and, in the case of a married individual, the individual's spouse who qualifies under section 42-17302, unless the individual or spouse is required to be absent from the residence due to illness.

4. The residence becomes income producing property.

B. If the county assessor has reason to believe that any of the circumstances listed in this section has occurred, the assessor shall immediately notify the county treasurer and the state treasurer.
A.R.S. § 42-5024 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5024
42-5024 Personal liability for tax; remedies for collection
Status: in_force

42-5024. Personal liability for tax; remedies for collection

Every tax imposed by this article and all increases, interest and penalties thereon shall become, from the time they are due and payable, a personal debt of the taxpayer to the state and may be collected by legal action under section 42-1114. Such remedy shall be in addition to existing remedies or those provided in this article.
A.R.S. § 42-2055 — Arizona Code / Title 42 / Chapter 2 / Article 2 / Section 2055
42-2055 Taxpayer assistance orders
Status: in_force

42-2055. Taxpayer assistance orders

A. The problem resolution officer, with or without a formal written request from a taxpayer, may issue a taxpayer assistance order that suspends or stays an action or proposed action by the department if, in the problem resolution officer's determination, a taxpayer is suffering or will suffer a significant hardship due to the manner in which the department administers the tax laws.

B. A taxpayer assistance order may require the department to release the taxpayer's property that has been levied on, cease any action or refrain from taking any action to enforce state tax laws against the taxpayer pending resolution of the issue or issues giving rise to the order.

C. The director or the problem resolution officer may modify, reverse or rescind a taxpayer assistance order. A taxpayer assistance order is binding on the department until it is reversed or rescinded.

D. The running of the applicable period of limitations for any action that is the subject of a taxpayer assistance order is suspended from the date the taxpayer applies for the order or the date the order is issued, whichever is earlier, until the order's expiration date, modification date or rescission date, if any. Interest that would otherwise accrue on an outstanding tax obligation is not affected by the issuance of a taxpayer assistance order.

E. A taxpayer assistance order may not be used:

1. To contest the merits of a tax liability.

2. As a substitute for informal protest procedures or administrative or judicial proceedings to review a deficiency assessment, collection action or denial of a refund claim.
A.R.S. § 42-1205 — Arizona Code / Title 42 / Chapter 1 / Article 5 / Section 1205
42-1205 Notice and sale of seized property
Status: in_force

42-1205. Notice and sale of seized property

A. Except as otherwise provided in this section, the notice of sale and sale of property seized by the department under this article shall be conducted in the manner and the time provided in title 12, chapter 9, article 7, relating to the sale of property under execution.

B. Real property may be redeemed in the manner provided by title 12, chapter 8, article 11.

C. The department shall notify the taxpayer of the date, time and location of the sale of the property or right to property with a description of the property or right to property to be sold. The notice shall be given in person, left at the taxpayer's dwelling or usual place of business or sent by first class mail or by e-mail to the taxpayer's last known address at least ten days before the day of the sale. If the property or right to property is perishable, the department shall give notice of the sale to the taxpayer in the manner and within the time limits as are reasonable considering the character and condition of the property.
A.R.S. § 42-12051 — Arizona Code / Title 42 / Chapter 12 / Article 2 / Section 12051
42-12051 Treatment of partially completed or vacant improvements; notification; exception
Status: in_force

42-12051. Treatment of partially completed or vacant improvements; notification; exception

A. For the purposes of classifying property under article 1 of this chapter, partially completed or vacant improvements on the land including improved common area tracts shall be classified according to their intended use as demonstrated by objective evidence.

B. For property that is not valued by the department, an improvement on the land is considered to be partially completed when the foundation of the structure or structures to be located on the property is in place.

C. The only portion affected by the reclassification is the improvement on the land and that portion of the land that is necessary to support the use of the structure or structures, except that common area tracts in residential developments associated with partially completed improvements shall receive the same classification as the partially completed improvements.

D. Property that is not valued by the department, that does not have a structure or structures and that is actively used for commercial purposes shall be classified as prescribed by article 1 of this chapter.

E. The department shall prescribe a form to be completed by the owner to notify the assessor that the requirements of this section have been completed. The form shall state the requirements for classification and shall provide the owner with information concerning the reclassification of property. Filing the notice is mandatory, but failing to notify the assessor does not prevent the reclassification of property if the requirements are completed.

F. This section does not apply to property that is classified as agricultural pursuant to article 4 of this chapter.
A.R.S. § 42-5072 — Arizona Code / Title 42 / Chapter 5 / Article 2 / Section 5072
42-5072 Mining classification; definition
Status: in_force

42-5072. Mining classification; definition

A. The mining classification is comprised of the business of mining, quarrying or producing for sale, profit or commercial use any nonmetalliferous mineral product that has been mined, quarried or otherwise extracted within the boundaries of this state described in article I, section 1, Constitution of Arizona.

B. The tax base for the mining classification is the gross proceeds of sales or gross income derived from the business. The gross proceeds of sales or gross income derived from sales described under section 42-5061, subsection A, paragraph 27 and subsection I, paragraph 2 shall be deducted from the tax base.

C. The tax base includes the value of the entire product mined, quarried or produced for sale, profit or commercial use in this state, regardless of the place of sale of the product or of the fact that deliveries may be made to points without this state. If, however, the sale price of the product includes freight, the sale price shall be reduced by the actual freight paid by any person from the place of production to the place of delivery.

D. In the case of a person engaged in business classified under the mining classification all or part of whose income is derived from service or manufacturing charges instead of from sales of the products manufactured or handled, the tax base includes the gross income of the person derived from the service or manufacturing charge.

E. If a person engaging in business classified under the mining classification ships or transports all or part of a product out of this state without making sale of the product or ships his product outside of this state in an unfinished condition, the value of the product or article in the condition or form in which it existed when transported out of this state and before it enters interstate commerce is included in the tax base, and the department shall prescribe equitable and uniform rules for ascertaining that value. In determining the tax base, if the product or any part of the product has been processed in this state and the proceeds of such processing have been included in the tax base of the processor under this chapter, the person may deduct from the value of the product when transported out of this state the cost of such processing.

F. A person who conducts a business classified under the mining classification may be deemed also to be engaged in business classified under the retail classification to the extent the person's activities comprise business under the retail classification if the tax is paid at the rate imposed on the retail classification by section 42-5010. If the transaction is not subject to taxation under the retail classification, the transaction shall be included in the tax base under this section, except for 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:

1. The transfer of title or possession of the coal is for the purpose of refining the coal.

2. 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 paragraph, "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.

G. For the purposes of this section, "nonmetalliferous mineral product" means oil, natural gas, limestone, sand, gravel or any other nonmetalliferous mineral product, compound or combination of nonmetalliferous mineral products.
A.R.S. § 42-14204 — Arizona Code / Title 42 / Chapter 14 / Article 5 / Section 14204
42-14204 Computing valuation of pipelines; definitions
Status: in_force

42-14204. Computing valuation of pipelines; definitions

A. The valuation of pipeline property that is subject to valuation for tax purposes shall be determined in the manner prescribed by this section.

B. The value of construction work in progress equals eighty-five percent of the amount spent and entered on the taxpayer's accounting records as of December 31 of the preceding calendar year as construction work in progress.

C. The value of materials and supplies equals the total cost of materials and supplies as of December 31 of the preceding calendar year.

D. The value of gas stored underground equals the total cost of gas stored underground as of December 31 of the preceding calendar year.

E. The value of noncapitalized leased operating property shall be determined by applying to the original cost of the noncapitalized leased operating property the ratio derived from dividing the preliminary system value by the original cost of the plant.

F. The department shall determine the valuation of a pipeline as follows:

1. Determine the base value.

2. Compute the value change factor.

3. Multiply the values in paragraphs 1 and 2 of this subsection to compute the preliminary system value. If the value change factor does not apply, the preliminary system value is the system net book value of plant in service as of December 31 immediately preceding the current year.

4. Add the value of construction work in progress, materials and supplies, noncapitalized leased operating property and gas stored underground to the preliminary system value.

5. Compute the allocation factor.

6. Multiply the sum computed pursuant to paragraph 4 of this subsection by the allocation factor.

G. All terms and applications of terms shall be interpreted as nearly as possible, under the circumstances, according to the federal energy regulatory commission uniform system of accounts for pipelines in effect on January 1, 1989.

H. For the purposes of this section:

1. "Allocation factor" means the factor used to assign a portion of the system value to this state and is computed by dividing the total Arizona original cost of plant in service, materials and supplies, construction work in progress, noncapitalized leased operating property and gas stored underground as of December 31 of the preceding calendar year by the corresponding total system original cost as of December 31 of the preceding calendar year.

2. "Asset change factor" means dividing the system net book value of plant in service as of December 31 immediately preceding the current valuation year by the system net book value of plant in service as of December 31 immediately preceding the prior valuation year. If the denominator is zero, the asset change factor does not apply.

3. "Base value" means the final full cash value of the system plant in service in the preceding valuation year. If the property was not subject to property valuation in this state in the preceding valuation year, the value is the net book value of plant in service plus the value of construction work in progress, materials and supplies, noncapitalized leased operating property and gas stored underground. If ownership changes, the base value shall be transferred to the new owner. If one of the circumstances described in section 42-14205 applies, the base value shall be adjusted.

4. "Capitalization rate" means the sum of the year-end thirty-year treasury bond rate plus 6.8 percent.

5. "Change in capitalization rate" means dividing the current year capitalization rate by the previous year capitalization rate.

6. "Change in earnings before interest and taxes" means dividing the average earnings before interest and income taxes for the three years immediately preceding the current valuation year by the average earnings before interest and income taxes for the three years immediately preceding the previous valuation year. If less than four years of earnings data are available, this factor does not apply. If four years of earnings data are available and a major plant addition or retirement occurs, for the valuation year after the addition or retirement occurs, this ratio shall be derived by dividing the earnings before interest and income taxes for the year immediately preceding the current valuation year by the earnings before interest and income taxes for the year immediately preceding the previous valuation year.

7. "Construction work in progress" means the total of the balances of work orders for plant in process of construction on the last day of the preceding calendar year.

8. "Gas stored underground" means the noncurrent portion of the cost of recoverable gas that is purchased or produced by the utility, that is stored in depleted or partially depleted gas or oil fields or other underground reservoirs and that is not held to meet the service requirements of the utility's customers.

9. "Income change factor" means dividing the change in earnings before interest and taxes by the change in the capitalization rate. If the change in earnings before interest and taxes does not apply, the income change factor does not apply.

10. "Major plant addition or retirement" means an addition or retirement of plant in the year preceding the current valuation year that results in an increase or decrease of at least twenty percent of the original cost of plant in service.

11. "Noncapitalized leased operating property" means property that is subject to an agreement that transfers the use of property to the lessee during the term of the lease and that is not capitalized on the lessee's balance sheet.

12. "Preliminary system value" means the base value multiplied by the value change factor.

13. "System net book value of plant" means the original cost of the system plant in service minus the related accumulated provision for depreciation.

14. "System value" means the sum of the system value of plant in service, construction work in progress, materials and supplies, noncapitalized leased property and gas stored underground.

15. "Value change factor" means the average of the income change factor and the asset change factor. If the income change factor does not apply, the value change factor is the asset change factor. If the asset change factor does not apply, the value change factor does not apply.
A.R.S. § 42-5010 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5010
42-5010 Rates; distribution base
Status: in_force

42-5010. Rates; distribution base

(Caution:  1998 Prop. 105 applies)

A. The tax imposed by this article is levied and shall be collected at the following rates:

1. Five percent of the tax base as computed for the business of every person engaging or continuing in this state in the following business classifications described in article 2 of this chapter:

(a) Transporting classification.

(b) Utilities classification.

(c) Telecommunications classification.

(d) Pipeline classification.

(e) Private car line classification.

(f) Publication classification.

(g) Job printing classification.

(h) Prime contracting classification.

(i) Amusement classification.

(j) Restaurant classification.

(k) Personal property rental classification.

(l) Retail classification and amounts equal to retail transaction privilege tax due pursuant to section 42-5008.01.

2. Five and one-half percent of the tax base as computed for the business of every person engaging or continuing in this state in:

(a) The transient lodging classification described in section 42-5070.

(b) The online lodging marketplace classification described in section 42-5076 who has entered into an agreement with the department to register for, or has otherwise obtained from the department, a license to collect tax pursuant to section 42-5005, subsection L.

3. Three and one-eighth percent of the tax base as computed for the business of every person engaging or continuing in this state in the mining classification described in section 42-5072.

4. Zero percent of the tax base as computed for the business of every person engaging or continuing in this state in the commercial lease classification described in section 42-5069.

B. Except as provided by subsections J and K of this section, twenty percent of the tax revenues collected at the rate prescribed by subsection A, paragraph 1 of this section from persons on account of engaging in business under the business classifications listed in subsection A, paragraph 1, subdivisions (a) through (h) of this section is designated as distribution base for the purposes of section 42-5029.

C. Except as provided by subsection K of this section, forty percent of the tax revenues collected at the rate prescribed by subsection A, paragraph 1 of this section from persons on account of engaging in business under the business classifications listed in subsection A, paragraph 1, subdivisions (i) through (l) of this section is designated as distribution base for the purposes of section 42-5029.

D. Thirty-two percent of the tax revenues collected from persons on account of engaging in business under the business classification listed in subsection A, paragraph 3 of this section is designated as distribution base for the purposes of section 42-5029.

E. Fifty-three and one-third percent of the tax revenues collected from persons on account of engaging in business under the business classification listed in subsection A, paragraph 4 of this section is designated as distribution base for the purposes of section 42-5029.

F. Fifty percent of the tax revenues collected from persons on account of engaging in business under the business classification listed in subsection A, paragraph 2 of this section is designated as distribution base for the purposes of section 42-5029.

G. In addition to the rates prescribed by subsection A of this section, if approved by the qualified electors voting at a statewide general election, an additional rate increment is imposed and shall be collected through June 30, 2021. The taxpayer shall pay taxes pursuant to this subsection at the same time and in the same manner as under subsection A of this section. The department shall separately account for the revenues collected with respect to the rates imposed pursuant to this subsection and the state treasurer shall distribute all of those revenues in the manner prescribed by section 42-5029, subsection E.  The rates imposed pursuant to this subsection shall not be considered local revenues for purposes of article IX, section 21, Constitution of Arizona. The additional tax rate increment is levied at the rate of six-tenths of one per cent of the tax base of every person engaging or continuing in this state in a business classification listed in subsection A, paragraph 1 of this section.

H. Any increase in the rate of tax that is imposed by this chapter and that is enacted by the legislature or by a vote of the people does not apply with respect to contracts entered into by prime contractors or pursuant to written bids made by prime contractors on or before the effective date of the legislation or the date of the election enacting the increase. To qualify for the exemption under this subsection, the prime contractor must maintain sufficient documentation, in a manner and form prescribed by the department, to verify the date of the contract or written bid.

I. For taxpayers that are taxable under this chapter other than prime contractors taxable pursuant to section 42-5075:

1. Any increase in the rate of tax that is levied by this article or article 2 of this chapter enacted by the legislature or by a vote of the people does not apply for a period of one hundred twenty days after the date of the tax rate increase to the gross proceeds of sales or gross income from the business of the taxpayer with respect to written contracts entered into before the effective date of the tax rate increase unless the taxpayer has entered into a contract that contains a provision that entitles the taxpayer to recover from the purchaser the amount of the additional tax levied.

2. The provisions of this subsection apply without regard to the accounting method used by the taxpayer to report the taxes imposed under article 2 of this chapter.

3. The provisions of this subsection shall not be considered in determining the rate of tax imposed under chapter 6, article 3 of this title.

J. Zero percent of the tax revenues that are collected at the rate prescribed by subsection A, paragraph 1 of this section from persons on account of engaging in business under the business classification listed in subsection A, paragraph 1, subdivision (h) of this section and that are subject to any distribution required by section 42-5032.02 is designated as distribution base for the purposes of section 42-5029 until the total amount subject to distribution pursuant to section 42-5032.02 has reached the maximum amount prescribed by section 42-5032.02, subsection C.  Thereafter, twenty percent of the remaining tax revenues is designated as distribution base for the purposes of section 42-5029 as provided by subsection B of this section.

K. Subject to section 48-4238, beginning on October 1, 2025 through December 31, 2055, zero percent of the tax revenues that are collected at the rate prescribed by subsection A, paragraph 1 of this section from persons engaging in business under the business classifications listed in subsection A, paragraph 1, subdivisions (h), (i), (j) and (l) of this section and that are subject to transmittal required by section 42-5032.03 is designated as distribution base for the purposes of section 42-5029.  Beginning January 1, 2056, twenty percent of the remaining tax revenues collected at the rate prescribed by subsection A, paragraph 1 of this section from persons engaging in business under the business classification listed in subsection A, paragraph 1, subdivision (h) of this section is designated as distribution base for the purposes of section 42-5029 as provided by subsection B of this section and forty percent of the remaining tax revenues collected at the rate prescribed by subsection A, paragraph 1 of this section from persons engaging in business under the business classifications listed in subsection A, paragraph 1, subdivisions (i), (j) and (l) of this section is designated as distribution base for the purposes of section 42-5029 as provided by subsection C of this section.
A.R.S. § 42-1131 — Arizona Code / Title 42 / Chapter 1 / Article 3 / Section 1131
42-1131 Electronic signatures; definition
Status: in_force

42-1131. Electronic signatures; definition

A. The department shall accept or require an electronic signature to serve as a functional equivalent of a written signature on a document that is submitted to the department. The electronic signature has the same force and effect as a written signature.

B. An electronic signature must meet all of the following requirements:

1. Be executed or adopted by a person with the intent to sign the document so as to indicate the person's approval of the information contained in the document.

2. Be attached to or logically associated with the information contained in the document being signed.

3. Be capable of reliable identification and authentication of the person as the signer. Identification and authentication may be accomplished through additional security procedures or processes if reliably correlated to the electronic signature.

4. Be linked to the document in a manner that would invalidate the electronic signature if the document is changed.

5. Be linked to the document so as to preserve its integrity as an accurate and complete record for the full retention period of the document.

6. Be compatible with standards and technology for electronic signatures that are generally used in commerce and industry and by state governments.

C. For documents that are signed electronically, the department shall prescribe the following:

1. The type of electronic signature required.

2. The manner and format in which the electronic signature must be affixed to the electronic record.

D. Notwithstanding any other provision of this section, the department's use and acceptance of electronic signatures are subject to the standards and requirements of title 44, chapter 26, article 3.

E. For the purposes of this section, "electronic signature" has the same meaning prescribed in section 44-7002.
A.R.S. § 42-11133 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11133
42-11133 Exemption for affordable housing projects; definition
Status: in_force

42-11133. Exemption for affordable housing projects; definition

A. Property that is used exclusively for affordable rental housing pursuant to section 42 of the internal revenue code or another recorded restrictive covenant imposed by financing for affordable housing and related facilities are exempt from taxation if:

1. The property is owned and operated by, or is a wholly owned subsidiary of, a corporation that is qualified pursuant to section 501(c)(3) or 501(c)(4) of the internal revenue code or a limited partnership or limited liability company in which the general partner or the managing member, as applicable, is an eligible nonprofit corporation or a single purpose entity that is wholly owned by one or more eligible nonprofit corporations.

2. Either of the following applies:

(a) The acquisition, rehabilitation, development or operation of the property, or any combination of these factors, is financed with tax exempt mortgage revenue bonds or general obligation bonds or is financed by local, state or federal loans or grants and the amount of rent paid by or on behalf of the occupants does not exceed the amount of rent that is prescribed by deed restrictions or by regulatory agreements pursuant to the property's financing or financial assistance terms.

(b) The owner of the property is eligible for and receives tax credits for low-income or moderate-income residential housing established under section 42 of the internal revenue code and the amount of rent paid by or on behalf of the occupants does not exceed the amount that is prescribed by deed restrictions or by regulatory agreements pursuant to the property's financing or financial assistance terms.

B. To qualify under this section, the owner of the property must:

1. For any claim that is filed in any fiscal year, certify and ensure, subject to paragraph 2 of this subsection, that there is an enforceable and verifiable agreement with a public agency, a recorded deed restriction or any other legal document that restricts the use of the property and requires that the rents do not exceed the terms that are prescribed by the financing or financial assistance terms.

2. Certify that the monies that would have been necessary to pay the property taxes are used to maintain the affordability of or otherwise reduce the rents of the units that are occupied by eligible low-income households.

C. For the purposes of this section, "eligible nonprofit corporation" means a corporation that is qualified pursuant to section 501(c)(3) or 501(c)(4) of the internal revenue code and for which one of its exempt purposes includes providing affordable housing.
A.R.S. § 42-12155 — Arizona Code / Title 42 / Chapter 12 / Article 4 / Section 12155
42-12155 Notice of approval or disapproval; appeal
Status: in_force

42-12155. Notice of approval or disapproval; appeal

A. The county assessor shall notify the property owner whether the assessor has approved or disapproved the agricultural classification of the property on or before the date on which the assessor next mails the owner the notice of valuation for the property.

B. If the assessor disapproved the agricultural classification, the assessor shall notify the owner of the reason for disapproval within one hundred twenty days of the application.

C. The owner may appeal the decision of the assessor as prescribed by chapter 16, article 2, 5 or 6 of this title.
A.R.S. § 42-12159 — Arizona Code / Title 42 / Chapter 12 / Article 4 / Section 12159
42-12159 Restoration of agricultural classification and valuation; refund
Status: in_force

42-12159. Restoration of agricultural classification and valuation; refund

A. A county assessor may reclassify real property as class two pursuant to section 42-12002 and this article under the following conditions:

1. The current owner previously held title to the property but sold the property before September 1, 1989.

2. Title to the property has reverted to the current owner involuntarily, or voluntarily in lieu of foreclosure or forfeiture, from the buyer or a successor in title, and the current owner did not receive a notice of valuation for the tax year in question.

3. The former owner of the property failed to apply for classification of the property as used for agricultural purposes pursuant to this article or prior law and failed to appeal the denial of agricultural status during the property tax appeal period for the tax year in question.

4. The property met the requirements prescribed by section 42-12152, subsection A.

5. The current reversionary owner of the property applies to the county assessor for reclassification and revaluation within four years after the date the property was reverted.

B. If the applicant submits a complete, correct and timely application under subsection A of this section, together with a sworn statement, under penalty of perjury, that the information contained in the application is true according to the applicant's best belief and knowledge and if the county assessor is satisfied that the property meets the requirements prescribed by subsection A of this section, the assessor shall:

1. Reclassify the property as class two under section 42-12002.

2. Redetermine the valuation of the property for the tax year in question pursuant to this article.

3. Issue a certificate of revaluation to the applicant.

C. The owner shall submit the certificate of revaluation to the county treasurer. After receiving the certificate, the county treasurer shall refund any taxes paid by the current owner with respect to the property for the tax year in question in excess of the taxes that would be due under the reclassification and revaluation, if the applicant submits proof that the applicant has paid the taxes for the tax year in question. The county treasurer is entitled to credit for the refund in the next accounting period with each taxing jurisdiction to which the tax monies may have been transmitted.
A.R.S. § 42-3457 — Arizona Code / Title 42 / Chapter 3 / Article 11 / Section 3457
42-3457 Unstamped cigarettes
Status: in_force

42-3457. Unstamped cigarettes

A. A person shall not possess an unstamped cigarette package unless the person is shipping or transporting unstamped cigarettes pursuant to subsection B of this section, is a licensed manufacturer or importer or is a licensed distributor who receives unstamped cigarette packages directly from a licensed manufacturer or importer.

B. Except for a licensed manufacturer, importer or distributor and if lawful under section 36-798.06, a person who ships unstamped cigarette packages in or into this state shall first file with the department a notice of shipment. This subsection does not apply to any common or contract carrier that is transporting cigarettes through this state to another location under a proper bill of lading or freight bill that states the quantity, source and destination of the cigarettes.

C. If lawful under section 36-798.06, a person who transports unstamped cigarette packages in or into this state shall carry in the vehicle used to convey the shipment invoices or equivalent documentation of the shipment for all cigarettes in the shipment. The invoices or documentation shall indicate the name and address of the consignor or seller, the name and address of the consignee or purchaser and the quantity of each brand of cigarettes that is transported.
A.R.S. § 42-5020 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5020
42-5020 Persons engaged in more than one business
Status: in_force

42-5020. Persons engaged in more than one business

Any person engaging in two or more forms of business of like classification taxable under this article may file a consolidated return covering all business activities of like classification engaged in within this state.
A.R.S. § 42-5160 — Arizona Code / Title 42 / Chapter 5 / Article 4 / Section 5160
42-5160 Liability for tax
Status: in_force

42-5160. Liability for tax

Any person who uses, stores or consumes any tangible personal property upon which a tax is imposed by this article and upon which the tax has not been collected by a registered retailer or utility business shall pay the tax as provided by this article, but every retailer and utility business maintaining a place of business in this state and making sales of tangible personal property for storage, use or other consumption in this state shall collect the tax from the purchaser or user unless the property is exempt under this article or the purchaser or user pays the tax directly to the department as provided by section 42-5167. In the case of a manufactured building that is purchased from a dealer outside this state and brought into this state, any person who is hired to set up the manufactured building and who is licensed pursuant to title 41, chapter 37, article 4 shall collect the tax from the owner and remit the tax with any tax that is due under the prime contracting classification.
A.R.S. § 42-6109.02 — Arizona Code / Title 42 / Chapter 6 / Article 3 / Section 6109.02
42-6109.02 Jail facilities excise tax; maintenance of effort; definitions
Status: in_force

42-6109.02. Jail facilities excise tax; maintenance of effort; definitions

(Conditionally Rpld.)

A. The board of supervisors of any county that levies a jail facilities excise tax under section 42-6109.01, 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 percent 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 collected pursuant to section 42-6109.01 and an accounting of the budgeting of those revenues by the county.

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

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

4. Be printed in the ballot proposition publicity pamphlet that 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 42-6109.01 and may not continue for 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.  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 and implement 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 42-6109.01 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 the purposes of this section:

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

2. "Jail facility" means a jail or other place of detention of persons who are 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. § 42-11126 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11126
42-11126 Exemption for production livestock and animals; definition
Status: in_force

42-11126. Exemption for production livestock and animals; definition

Livestock and poultry as defined in section 3-1201, aquatic animals as defined in section 3-2901 and colonies of bees are exempt from taxation as provided by article IX, section 13, Constitution of Arizona. For purposes of this section, "poultry" includes ratites.
A.R.S. § 42-16111 — Arizona Code / Title 42 / Chapter 16 / Article 3 / Section 16111
42-16111 Appeal from county board of equalization
Status: in_force

42-16111. Appeal from county board of equalization

A. A property owner who is dissatisfied with the valuation or classification of the property as fixed by the county board, or a petitioner whose petition under this article is denied, in whole or in part, may appeal directly to court as provided by section 42-16202.

B. If the county board orders the valuation of any property to be reduced, the assessor or the department may appeal the decision to the court in the same manner as provided in subsection A of this section.
A.R.S. § 42-18403 — Arizona Code / Title 42 / Chapter 18 / Article 9 / Section 18403
42-18403 Notice required before seizing railroad rolling stock
Status: in_force

42-18403. Notice required before seizing railroad rolling stock

Before seizing the rolling stock of a railroad company, if the real property of the company in the county is not sufficient to secure payment of the tax on both the real and personal property assessed to the company, the county treasurer shall notify one of the agents, conductors or persons in charge of a station or freight depot of the company that unless the tax is paid within ten days the treasurer will seize the personal property belonging to the company for taxes due.
A.R.S. § 42-5008.01 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5008.01
42-5008.01 Liability for amounts equal to retail transaction privilege tax due
Status: in_force

42-5008.01. Liability for amounts equal to retail transaction privilege tax due

A. A person that is either a prime contractor subject to tax under section 42-5075 or a subcontractor working under the control of such a prime contractor, that purchases tangible personal property, the purchase price of which was excluded from the tax base under the retail classification under section 42-5061, subsection A, paragraph 27 or was excluded from the use tax under section 42-5159, subsection A, paragraph 13, subdivision (g) at the time of purchase, and that incorporates or fabricates the tangible personal property into a project described in section 42-5075, subsection P is liable for an amount equal to any tax that a seller would have been required to pay under section 42-5061 and this article as follows:

1. The amount of liability shall be calculated and reported based on the location of the project and the taxes imposed under this chapter and chapter 6 of this title.

2. All deductions, exemptions and exclusions for the cost of tangible personal property provided in section 42-5075 apply to the tangible personal property incorporated or fabricated into the project.

3. This subsection does not apply to tangible personal property that is incorporated or fabricated into any project under a contract that would otherwise be excluded from the tax base under section 42-5075, without regard to section 42-5075, subsection P.

4. The amount of liability shall be reported within the reporting period that includes the month in which the person incorporates or fabricates the tangible personal property into the project.

5. The person is not liable for the amount if the contractor who hired the person executes and provides to the person a certificate stating that the contractor providing the certificate is liable for any amount due under this subsection.  The department shall prescribe the form of the certificate. If the person has reason to believe that the information contained on the certificate is erroneous or incomplete, the department may disregard the certificate.  The contractor providing the certificate is liable for the amount that otherwise would be due from the person under this subsection.

B. A person that purchased tangible personal property, the purchase price of which was excluded from the tax base under section 42-5061, subsection A, paragraph 27 or was excluded from the use tax under section 42-5159, subsection A, paragraph 13, subdivision (g) at the time of purchase, that subsequently cancels its transaction privilege tax license and that uses, consumes, sells or discards the tangible personal property is liable for an amount of tax determined under this subsection.  For the purposes of this subsection:

1. If the tangible personal property is incorporated or fabricated into a project described in section 42-5075, subsection P, or otherwise used or consumed by the person, the amount of liability shall be calculated and reported based on the person's purchase price of the tangible personal property, the location of the project, use or consumption and the taxes imposed under this chapter and chapter 6 of this title.

2. If the tangible personal property is sold in a manner that is not subject to tax under this chapter or is discarded, the amount shall be calculated and reported based on the payment received by the person, the location of the person's principal place of business in this state and the taxes imposed under this chapter and chapter 6 of this title.

3. The person is not liable under this subsection for any amount if the person discards the tangible personal property and does not receive payment of any kind.

4. The amount of liability shall be reported on or before the business day preceding the last business day of the month following the month in which the person uses the tangible personal property in a manner described in paragraph 1 or 2 of this subsection.  No amount is due under this subsection at any time that the person stores the tangible personal property without using it in a manner described in paragraph 1 or 2 of this subsection.

5. All deductions, exemptions and exclusions for the cost of tangible personal property provided in section 42-5075 apply to the tangible personal property incorporated or fabricated into a project described in section 42-5075, subsection P.

6. This subsection does not apply to tangible personal property that is incorporated or fabricated into any project under a contract that would otherwise be excluded from the tax base under section 42-5075, without regard to section 42-5075, subsection P.

7. The person is not liable for the amount if the contractor who hired the person executes and provides to the person a certificate stating that the contractor providing the certificate is liable for any amount due under this subsection for tangible personal property incorporated or fabricated into a project described in section 42-5075, subsection P.  The department shall prescribe the form of the certificate.  If the person has reason to believe that the information contained on the certificate is erroneous or incomplete, the department may disregard the certificate.  The contractor providing the certificate is liable for the amount that otherwise would be due from the person under this subsection.

C. A person that fails to report or pay any amount due under subsection A or B of this section is liable for interest in a manner consistent with section 42-1123 and penalties in a manner consistent with section 42-1125.

D. If a person has paid an amount described in this section on tangible personal property that the person reasonably believed to be described in section 42-5075, subsection P and a final determination is made that section 42-5075, subsection P does not apply, the person is entitled to an offset for the amount paid under this section against the amount of tax liability assessed under this chapter and chapter 6 of this title.
A.R.S. § 42-2004 — Arizona Code / Title 42 / Chapter 2 / Article 1 / Section 2004
42-2004 Violation; classification
Status: in_force

42-2004. Violation; classification

A disclosure of confidential information in violation of this article is a class 1 misdemeanor. A knowing disclosure of confidential information in violation of this article is a class 6 felony.
A.R.S. § 42-15054 — Arizona Code / Title 42 / Chapter 15 / Article 2 / Section 15054
42-15054 Listing by assessor on failure to receive report; investigations
Status: in_force

42-15054. Listing by assessor on failure to receive report; investigations

A. If a person refuses on demand to give under oath or affirmation the report as required by section 42-15052 or 42-15053, or if the owner of property that is not reported by another person is absent or unknown, the assessor shall fill out a report for that person and shall include all taxable property that the assessor has reason to believe that the person owns, possesses or controls. If the name of an absent owner is known to the assessor, the property shall be assessed in that name, but if the name is not known, it shall be assessed to "unknown owners".

B. The assessor shall make such investigation as necessary to ensure that all property subject to taxation in the county is properly included on the assessor's property lists.

C. If the assessor believes that a person has not returned a full and complete report of all property that the person possesses or controls, the assessor may investigate as necessary to ascertain the extent and value of the property. The assessor shall conduct the investigation in such a manner that would discover and correct any errors in the taxpayer's favor as well as discover and correct any errors not in the taxpayer's favor.
A.R.S. § 42-17104 — Arizona Code / Title 42 / Chapter 17 / Article 3 / Section 17104
42-17104 Public hearing on expenditures and tax levy
Status: in_force

42-17104. Public hearing on expenditures and tax levy

A. The governing body of each county, city or town shall hold a public hearing on or before the fourteenth day before the day on which it levies taxes as stated in the notice under section 42-17103. Any taxpayer may appear and be heard in favor of or against any proposed expenditure or tax levy.

B. If a truth in taxation notice and hearing is required under section 42-17107, the governing body may combine the hearing under this section with the truth in taxation hearing.
A.R.S. § 42-14203 — Arizona Code / Title 42 / Chapter 14 / Article 5 / Section 14203
42-14203 Determining and reporting valuation
Status: in_force

42-14203. Determining and reporting valuation

A. On or before August 31 of each year, the department shall find the full cash value of the property of each pipeline that operates in this state.

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

C. On or before November 30 of each year, the department shall transmit the locations, descriptions and valuations to the respective county assessors.
A.R.S. § 42-17303 — Arizona Code / Title 42 / Chapter 17 / Article 7 / Section 17303
42-17303 Property entitled to tax deferral
Status: in_force

42-17303. Property entitled to tax deferral

To qualify for deferral of property taxes the residence shall meet all of the following requirements:

1. It must be the taxpayer's primary residence.

2. It must not be income producing.

3. It may not have a full cash value, as determined by the county assessor for the current tax year, of more than one hundred fifty thousand dollars.

4. It may not be subject to the lien of any mortgage, reverse mortgage, deed of trust or other real property security interest that has been of record for less than five years before the date the deferral claim form is filed.

5. All property taxes must be paid for years preceding the year for which the initial election is made.
A.R.S. § 42-11128 — Arizona Code / Title 42 / Chapter 11 / Article 3 / Section 11128
42-11128 Exemption for personal property in transit; violation; classification
Status: in_force

42-11128. Exemption for personal property in transit; violation; classification

A. The following personal property has no situs in this state and is exempt from taxation:

1. Personal property moving through this state to a final destination outside this state.

2. Personal property consigned to a warehouse in this state from a point outside this state for storage or assembly in transit to a final destination outside this state.

B. Property that is claimed to have no situs in this state for the purposes of taxation shall be entered in the records of the warehouse in which it is located as property in transit or futures contract property. The record shall include:

1. The date of receipt.

2. The date of withdrawal.

3. The point of origin.

4. The point of ultimate destination, if known.

C. The record of property shall be open at all times to inspection by the department or the taxing authority of a political subdivision of this state.

D. A person who files a claim for exemption of property in transit shall do so on a form and in the manner the department prescribes and shall include a certificate of the operator of the warehouse in which the property is located stating that the property is entered in the warehouse records as property in transit.

E. The owner or operator of a warehouse in or from which commodities that are exempt under section 42-11122 are deliverable shall file an affidavit with the county assessor between the first Monday in January and March 1 of each year stating that the property in the warehouse is futures contract property. The assessor may require additional evidence of the facts stated by the affidavit, but when the assessor accepts the affidavit as complete and correct, the commodities that are stored or consigned in the warehouse are considered to be exempt from taxation for the tax year under section 42-11122.

F. A person who knowingly makes a false statement in any document submitted under this section to an officer who is charged with assessing property for tax purposes is guilty of a class 6 felony.
A.R.S. § 42-11051 — Arizona Code / Title 42 / Chapter 11 / Article 2 / Section 11051
42-11051 General powers of department relating to property valuation
Status: in_force

42-11051. General powers of department relating to property valuation

In performing its duties under this title the department may:

1. Study the property tax systems of other states.

2. Employ technical experts and assistants and contract for services as necessary to carry out its duties.

3. Appoint advisory committees that represent various classes of property.
A.R.S. § 42-15254 — Arizona Code / Title 42 / Chapter 15 / Article 6 / Section 15254
42-15254 Conveyance of remote municipal property to private ownership; payment of tax revenues
Status: in_force

42-15254. Conveyance of remote municipal property to private ownership; payment of tax revenues

A. If the municipality conveys the title to the remote municipal property to private ownership, a political subdivision that receives property taxes from the property, and that has outstanding bonds or other long-term obligations that are secured by water transportation revenues under title 35, chapter 3, article 3.4, shall determine the amount of property taxes otherwise payable as prescribed by section 42-15253 as a result of that political subdivision's property tax rates and the value of the property.

B. The political subdivision shall make special payments to the county treasurer of the county in which the property is located in the amount determined pursuant to section 42-15253 in the manner prescribed in section 9-433.
A.R.S. § 42-17109 — Arizona Code / Title 42 / Chapter 17 / Article 3 / Section 17109
42-17109 Alternative and additional method of leasing municipal facilities
Status: in_force

42-17109. Alternative and additional method of leasing municipal facilities

A. This section provides an alternative and additional method for leasing municipal facilities. This section does not apply to leases entered into before or after March 31, 1965, nor to leases executed and existing on March 31, 1965, if the leases would have been valid regardless of the enactment of this section.

B. Nothing contained in this article shall be construed to limit the right of a city or town, as lessee, to enter into leases of real or personal property to be used for municipal auditorium and convention center purposes running for a term of not more than fifty years. A city or town may enter into such leases if title to the property leased is to vest in the lessee at the expiration of the term of the lease if the lessee has performed all of its obligations under the lease. No such lease need be included in the budget for the fiscal year in which it is executed, but provision shall be made in each annual budget thereafter during the term of the lease for the levy of taxes or the provision of other revenues fully sufficient to pay any rental falling due during that fiscal year. No such lease may be entered into without submitting the question to the qualified electors of the municipality and approval of the lease by a majority of those voting on the issue at an election to be ordered, conducted and canvassed in the manner provided in title 9, chapter 7, article 3.

C. Monies for any rental payments due under any lease pursuant to subsection B shall be derived from revenues other than those collected to pay the general obligation bonds of the city or town and shall be used for municipal auditorium and convention center purposes. A tax shall not be imposed on real property to support the operation or maintenance of a municipal auditorium or convention center financed under this section. A tax shall not be imposed, or the proceeds of a tax shall not be used, for the payment of rentals under any lease entered into under this section.
A.R.S. § 42-16154 — Arizona Code / Title 42 / Chapter 16 / Article 4 / Section 16154
42-16154 Chairman; administration; meetings
Status: in_force

42-16154. Chairman; administration; meetings

A. The governor shall appoint the chairman of the state board who is responsible for the administration and operation of the board. The position of chairman is a full-time position. The chairman is eligible to receive compensation pursuant to section 38-611.

B. The state board shall meet at the call of the chairman as often as necessary to accomplish the duties prescribed by law and may hold meetings or hearings at any location in the counties that appoint members to the board. Members of the state board shall act under the direction of the chairman in carrying out their duties and responsibilities as provided by law and the rules of the board.

C. The members of the state board shall adopt administrative rules and rules of procedure for hearings before the board. The state board of equalization may adopt by reference judicial rules and rules of the state board of tax appeals to the extent that they apply to the proceedings of the state board of equalization. All hearings that are conducted before the state board, either by the board or a panel, a member or a hearing officer of the board, shall be conducted according to the rules.
A.R.S. § 42-5352 — Arizona Code / Title 42 / Chapter 5 / Article 8 / Section 5352
42-5352 Levy of tax
Status: in_force

42-5352. Levy of tax

A. A jet fuel excise tax is levied on every person engaging or continuing in the business of the retail sale of jet fuel. The jet fuel excise tax levied on the purchase of jet fuel by each purchaser of jet fuel in each calendar year shall be as follows:

1. The first ten million gallons of jet fuel shall be taxed at a rate of 3.05 cents per gallon.

2. From and after June 30, 1992, any amounts over ten million gallons of jet fuel shall be taxed at a rate of 2.05 cents per gallon.

3. From and after June 30, 1993, any amounts over ten million gallons of jet fuel shall be taxed at a rate of 1.05 cents per gallon.

4. From and after June 30, 1994, any amounts over ten million gallons of jet fuel shall not be subject to tax.

B. Except as provided in subsections C and D, a jet fuel use tax is levied and imposed on the storage, use or consumption in this state of jet fuel purchased from a retailer at the same tax rate imposed by subsection A in any case in which the tax imposed by subsection A has not been paid to the state. The tax imposed by this section applies to any purchaser which purchased jet fuel for resale but subsequently uses or consumes the jet fuel.

C. A receipt, invoice or other valid transaction document given to the purchaser by a retailer who maintains a place of business in this state or by a retailer who is licensed by the department to pay the tax imposed by subsection A and which either shows that the tax imposed by subsection A has been separately charged by the retailer or expressly states that the total charge is inclusive of the tax imposed by subsection A is sufficient to relieve the purchaser from further liability for the tax imposed by subsection B.

D. The tax levied by this article does not apply to the sale or use of jet fuel which has already been subjected to an excise tax under the laws of another state of the United States, whether imposed on a gallonage, percentage or other basis, which is equal to or exceeds the tax imposed by this article. If the excise tax imposed under the laws of another state of the United States is less than the tax imposed by this article, then a credit in the amount of the tax imposed by the other state shall be allowed against the tax imposed under this article.
A.R.S. § 42-5167 — Arizona Code / Title 42 / Chapter 5 / Article 4 / Section 5167
42-5167 Use tax direct payment
Status: in_force

42-5167. Use tax direct payment

A. A person may elect to pay use taxes directly to the department under this article if the person:

1. Applies to the department for a use tax direct payment permit.  The application must be on a form prescribed by the department setting forth the name under which the applicant transacts or intends to transact business, the location of the place or places of business where the applicant intends to make direct payment of use taxes and any other information that the department may require.  The application must be signed, in the case of:

(a) A natural person, by the owner.

(b) An association or partnership, by a member or partner.

(c) A corporation, by an executive officer or another person specifically authorized by the corporation to sign the application.

2. Agrees to self-assess and pay directly to the department any use tax liability incurred under this article.

3. Certifies to the department that the person purchased for the person's own use tangible personal property at a cost of five hundred thousand dollars or more, in the aggregate, during the immediately preceding calendar year.

B. The department shall issue a use tax direct payment permit to any applicant that meets the requirements of subsection A of this section.

C. If the department deems it necessary to protect the revenues to be collected under this section, it may require a person to file a bond to secure the payment of such amounts pursuant to section 42-1102.

D. A person who holds a valid use tax direct payment permit shall:

1. Self-assess and pay directly to the department use taxes due under this article for all tangible personal property subject to use tax.

2. Report the tax on a tax return prescribed by the department.

E. A holder of a use tax direct payment certificate may issue a use tax direct payment certificate to any retailer or seller, subject to all of the following:

1. The certificate shall be in a form prescribed by the department and must be signed by and bear the name, address and permit number of the holder of the use tax direct payment permit.

2. The certificate is effective until the permit holder revises or withdraws the certificate or until the retailer or seller receives actual notice that the department has revoked the permit.

3. The certificate relieves the retailer or seller of the duty to collect use tax only if taken in good faith from a person who holds a use tax direct payment permit.  The department may periodically publish on its web site a list of taxpayers by name with tax identification numbers who have been issued direct payment permits.  A purchaser holding a direct payment permit who issues a use tax direct payment certificate that is accepted in good faith by a retailer or seller of tangible personal property shall be liable for use tax and related interest and penalties with respect to any transaction that the department subsequently determines properly subjects the vendor to the transaction privilege tax and not use tax.  The vendor shall be relieved of the duty to pay transaction privilege tax on such transactions.

4. In addition to any use tax liabilities, a holder of a use tax direct payment permit that gives a use tax direct payment certificate to a retailer or seller is subject to the same penalty provisions that apply to a retailer or seller.
A.R.S. § 42-5001 — Arizona Code / Title 42 / Chapter 5 / Article 1 / Section 5001
42-5001 Definitions
Status: in_force

42-5001. Definitions

In this article and article 2 of this chapter, unless the context otherwise requires:

1. "Business" includes all activities or acts, personal or corporate, that are engaged in or caused to be engaged in with the object of gain, benefit or advantage, either directly or indirectly, but does not include either:

(a) Casual activities or sales.

(b) The transfer of electricity from a solar photovoltaic generation system to an electric utility distribution system.

2. "Distribution base" means the portion of the revenues derived from the tax levied by this article and articles 5 and 8 of this chapter designated for distribution to counties, municipalities and other purposes according to section 42-5029, subsection D.

3. "Engaging", when used with reference to engaging or continuing in business, includes the exercise of corporate or franchise powers.

4. "Gross income" means the gross receipts of a taxpayer derived from trade, business, commerce or sales and the value proceeding or accruing from the sale of tangible personal property or service, or both, and without any deduction on account of losses.

5. "Gross proceeds of sales" means the value proceeding or accruing from the sale of tangible personal property without any deduction on account of the cost of property sold, expense of any kind or losses, but cash discounts allowed and taken on sales are not included as gross income.

6. Gross income and gross proceeds of sales do not include goods, wares or merchandise, or the value thereof, returned by customers if the sale price is refunded either in cash or by credit, or the value of merchandise traded in on the purchase of new merchandise when the trade-in allowance is deducted from the sales price of the new merchandise before completion of the sale.

7. "Gross receipts" means the total amount of the sale, lease or rental price, as the case may be, of the retail sales of retailers, including any services that are a part of the sales, valued in money, whether received in money or otherwise, including all receipts, cash, credits and property of every kind or nature, and any amount for which credit is allowed by the seller to the purchaser without any deduction from the amount on account of the cost of the property sold, materials used, labor or service performed, interest paid, losses or any other expense.  Gross receipts do not include cash discounts allowed and taken or the sale price of property returned by customers if the full sale price is refunded either in cash or by credit.

8. "Marketplace" means a physical or electronic place, platform or forum, including a store, booth, internet website, catalog or dedicated sales software application, where products, including tangible personal property, are offered for sale.

9. "Marketplace facilitator":

(a) Means a person that facilitates a retail sale by a marketplace seller by listing or advertising for sale by the marketplace seller in a marketplace tangible personal property and, either directly or indirectly, through agreements or arrangements with third parties collecting payment from the purchaser and transmitting that payment to the marketplace seller, regardless of whether the marketplace facilitator receives compensation for the marketplace facilitator's services.

(b) Does not include a payment processor business that is appointed to handle payment transactions from various channels, such as charge cards, credit cards and debit cards, and whose sole activity with respect to marketplace sales is to handle transactions between two parties.

10. "Marketplace seller" means a person that makes retail sales through any physical or electronic marketplace that is operated by a marketplace facilitator.

11. "Person" or "company" includes an individual, firm, partnership, joint venture, association, corporation, estate, trust, marketplace facilitator or remote seller, this state, any county, city, town, district, other than a school district, or other political subdivision and any other group or combination acting as a unit, and the plural as well as the singular number.

12. "Qualifying community health center":

(a) Means an entity that is recognized as nonprofit under section 501(c)(3) of the United States internal revenue code, that is a community-based, primary care clinic that has a community-based board of directors and that is either:

(i) The sole provider of primary care in the community.

(ii) A nonhospital affiliated clinic that is located in a federally designated medically underserved area in this state.

(b) Includes clinics that are being constructed as qualifying community health centers.

13. "Qualifying health care organization" means an entity that is recognized as nonprofit under section 501(c) of the United States internal revenue code and that uses, saves or invests at least eighty percent of all monies that it receives from all sources each year only for health and medical related educational and charitable services, as documented by annual financial audits prepared by an independent certified public accountant, performed according to generally accepted auditing standards.  Monies that are used, saved or invested to lease, purchase or construct a facility for health and medical related education and charitable services are included in the eighty percent requirement.

14. "Qualifying health sciences educational institution" means an entity that is recognized as nonprofit under section 501(c) of the United States internal revenue code and that solely provides graduate and postgraduate education in the health sciences. For the purposes of this paragraph, "health sciences" includes medicine, nursing, physician's assistant studies, pharmacy, physical therapy, occupational therapy, biomedical sciences, podiatry, clinical psychology, cardiovascular science, nurse anesthesia, dentistry, optometry and veterinary medicine.

15. "Qualifying hospital" means any of the following:

(a) A licensed hospital that is organized and operated exclusively for charitable purposes, no part of the net earnings of which inures to the benefit of any private shareholder or individual.

(b) A licensed nursing care institution or a licensed residential care institution or a residential care facility operated in conjunction with a licensed nursing care institution or a licensed kidney dialysis center that provides medical services, nursing services or health related services and that is not used or held for profit.

(c) A hospital, nursing care institution or residential care institution that is operated by the federal government, this state or a political subdivision of this state.

(d) A facility that is under construction and that on completion will be a facility under subdivision (a), (b) or (c) of this paragraph.

16. "Remote seller" means a person that sells products for delivery into this state and that does not have a physical presence or other legal requirement to obtain a transaction privilege tax license in this state other than because the person's business exceeds the threshold provided in section 42-5044.

17. "Retailer" includes every person engaged in the business classified under the retail classification pursuant to section 42-5061 and, when in the opinion of the department it is necessary for the efficient administration of this article, includes dealers, distributors, supervisors, employers and salesmen, representatives, peddlers or canvassers as the agents of the dealers, distributors, supervisors or employers under whom they operate or from whom they obtain the tangible personal property sold by them, whether in making sales on their own behalf or on behalf of the dealers, distributors, supervisors or employers.

18. "Sale" means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatever, including consignment transactions and auctions and transactions facilitated by a marketplace facilitator on behalf of a marketplace seller, of tangible personal property or other activities taxable under this chapter, for a consideration, and includes:

(a) Any transaction by which the possession of property is transferred but the seller retains the title as security for the payment of the price.

(b) Fabricating tangible personal property for consumers who furnish either directly or indirectly the materials used in the fabrication work.

(c) Furnishing, preparing or serving for a consideration any tangible personal property consumed on the premises of the person furnishing, preparing or serving the tangible personal property.

19. "Solar daylighting" means a device that is specifically designed to capture and redirect the visible portion of the solar beam, while controlling the infrared portion, for use in illuminating interior building spaces in lieu of artificial lighting.

20. "Solar energy device" means a system or series of mechanisms that are designed primarily to provide heating, to provide cooling, to produce electrical power, to produce mechanical power, to provide solar daylighting or to provide any combination of the foregoing by means of collecting and transferring solar generated energy into such uses either by active or passive means, including wind generator systems that produce electricity. Solar energy systems may also have the capability of storing solar energy for future use. Passive systems shall clearly be designed as a solar energy device, such as a trombe wall, and not merely as a part of a normal structure, such as a window.

21. "Tangible personal property" means personal property that may be seen, weighed, measured, felt or touched or that is in any other manner perceptible to the senses.

22. "Taxpayer" means any person who is liable for any tax imposed by this article.

23. "Tax year" or "taxable year" means either the calendar year or the taxpayer's fiscal year, if permission is obtained from the department to use a fiscal year as the tax period instead of the calendar year.

24. "Wholesaler" or "jobber" means any person who sells tangible personal property for resale and not for consumption by the purchaser.
A.R.S. § 42-14103 — Arizona Code / Title 42 / Chapter 14 / Article 3 / Section 14103
42-14103 Annual report for determining valuation; violation; classification
Status: in_force

42-14103. Annual report for determining valuation; violation; classification

A. On or before April 1 of each year each producer shall make and file with the department a return showing the producer's gross production and gross yield from each of the producer's producing properties for the immediately preceding calendar year. On request and for good cause the department may grant a thirty day extension of time for filing the report.

B. The report shall show the county in which the production took place and the description of the property from which the oil, gas or geothermal resource was produced.

C. The producer or the producer's authorized representative shall verify the report.

D. A producer who knowingly fails to file the report prescribed by this section or who knowingly files a false report is guilty of a class 2 misdemeanor.