The Arizona transaction privilege tax is imposed on the privilege of conducting business in the State of Arizona. The vendor may pass the burden of the tax on to the purchaser. However, the vendor is the taxpayer and is ultimately liable to Arizona for the tax. The transaction privilege tax is imposed on the business of selling tangible personal property at retail. The tax base for the retail classification is the gross proceeds of sales or gross income derived from the business.
All retail sales are subject to tax unless specifically exempted by statute.
In certain cases, an exemption is available for the retail sale of chemicals. A second definition of manufacturing may be found in the Administrative Code. Webster s at 1133. Webster s at 500. An information letter explaining refunds will be provided to you under separate cover.