Background In Arizona, transaction privilege tax is levied upon the gross receipts or gross income received from a taxable business activity. The tax is the liability of the business or seller, but may be passed through to the consumer or purchaser.
Purchases made outside of Arizona and then brought into the state are subject to use taxation.
Use tax is applied to the storage, use or consumption of tangible personal property in this state that has not been subject to an equivalent excise tax by another state. This legislation expands the transaction privilege and use tax exemptions for liquid, solid or gaseous chemicals used in mining and manufacturing to include those used in printing. Additionally, reduced state shared distributions to cities and counties are anticipated as a result of the exemptions. Expands transaction privilege and use taxation exemptions to include liquid, solid, or gaseous chemicals used in printing as part of the production process. TO H.B. 2014 Page 2.