reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1107 - Extension of time for filing returns

42-1107.
Extension of time for filing returns
A. The department,  pursuant to administrative rule,  may grant an automatic extension of time for filing an income tax return under title 43 if at least ninety percent of the tax liability disclosed by the taxpayer's return for the reporting period is paid and if the request for extension is received or mailed on or before the date the return is otherwise due to be filed. If at least ninety percent of the tax liability disclosed by the taxpayer's return for the reporting period has not been paid at the time of filing for the extension,  the taxpayer is subject to a penalty of one-half of one percent of the tax not paid for each thirty-day period or fraction of a thirty-day period elapsing between the date the return is otherwise due to be filed and the date the tax is paid,  not to exceed a total of twenty-five percent. If a taxpayer is subject to both of the penalties prescribed under this section and section 42-1125,  the maximum combined penalty that may be imposed on the taxpayer under both sections shall not exceed twenty-five percent of the tax found to be remaining due. A taxpayer is not subject to the penalties prescribed under section 42-1125,  subsection D if the taxpayer is subject to the penalties prescribed under this section. If in its judgment good cause exists,  the department may grant a further extension or extensions of time for filing the return pursuant to administrative rule. Except as provided in subsection D of this section,  an extension or extensions granted under this subsection may not aggregate more than six months after the due date provided for the filing of returns.
B. If the taxpayer has been granted an extension or extensions of time within which to file a federal income tax return for any taxable year,  the taxpayer is deemed to have been granted the same extension of time for filing the Arizona income tax return if the taxpayer has paid at least ninety percent of the tax liability disclosed by the taxpayer's return for the reporting period. If at the time the taxpayer has been granted a federal extension or extensions the taxpayer is required to pay at least ninety percent under this section,  the payment shall be in a manner prescribed by the department.
C. The department,  for good cause,  may extend the time for making any other return required by chapter 5,  articles 1,  4 and 5 of this title,  and may grant such reasonable additional time in which to make the return as it deems proper,  but the time for filing the return shall not be extended beyond the first day of the third month next succeeding the regular due date of the return.
D. The due date for an income tax return for a taxpayer filing a corporate or exempt organization return that has been granted an extension or extensions pursuant to subsection A or B of this section is seven months after the initial due date provided for filing returns. This subsection does not include small business corporation returns filed under section 43-1126.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1110 - Successor liability for tax

42-1110.
Successor liability for tax
A. The taxes administered pursuant to this article except estate and income taxes are a lien on the property of any person subject to this article who sells his business or stock of goods,  or quits business,  if the person fails to make a final return and payment of the tax within fifteen days after selling or quitting his business.
B. A person's successors or assigns shall withhold from the purchase money an amount sufficient to cover the taxes required to be collected and interest or penalties due and payable until the former owner produces a receipt from the department showing that the department has been paid or a certificate stating that no amount is due as then shown by the records of the department. The department shall respond to a request from the seller for a certificate within fifteen days by either providing the certificate or a written notice stating why the certificate cannot be issued. If a subsequent audit shows a deficiency arising before the sale of the business,  the deficiency is an obligation of the seller and does not constitute a liability against the buyer who has received a certificate from the department. If the purchaser of a business or stock of goods fails to withhold sufficient purchase money as provided by this subsection,  he is personally liable for payment of the amount of taxes required to be collected or paid by the former owner on account of the business so purchased,  with interest and penalties accrued and unpaid by the former owner or assignors.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1111 - Jeopardy assessments

42-1111.
Jeopardy assessments
A. If the department believes that the collection of any assessment or deficiency of any tax administered pursuant to this article will be jeopardized by delay,  whether or not the time otherwise prescribed by law for making a return and paying the tax has expired and notwithstanding other provisions of law,  the department shall immediately mail,  send electronically or issue notice of its finding and the information on which the finding is based to the taxpayer and demand immediate payment of the tax or deficiency declared to be in jeopardy,  including interest,  penalties and additions.
B. Jeopardy assessments are immediately due and payable,  and the department may immediately begin proceedings for collection. The taxpayer,  however,  may stay collection and prevent the jeopardy assessment from becoming final by filing,  within ten days after the date of mailing or delivery of the notice of jeopardy assessment,  or within such additional time as the department may allow,  a bond or other security in such amounts as the department may deem necessary,  not exceeding the amount of the assessment including interest and penalties as to which the stay is desired. The taxpayer may proceed to appeal the assessment as provided in article 6 of this chapter.
C. If a bond or other security is not filed within the period prescribed by subsection B of this section,  the department may treat the assessment as final for purposes of any collection proceedings. The taxpayer shall be afforded the appeal rights provided in article 6 of this chapter. The filing of a petition by the taxpayer under section 42-1251 does not stay the department's rights to pursue any collection proceedings.
D. In any proceeding brought to enforce payment of taxes made due and payable by this section:
1. The belief of the department under subsection A of this section,  whether or not made after notice to the taxpayer,  is for all purposes presumptive evidence that the assessment or collection of the tax or the deficiency was in jeopardy.
2. A certificate of the department of the mailing,  electronic sending or issuing of the notice specified in this section is presumptive evidence that the notice was mailed,  sent or issued.
E. The taxpayer may request an expedited review of the department's action pursuant to section 42-2061.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1112 - Enforcement powers and duties

42-1112.
Enforcement powers and duties
In performing its duties pursuant to this article the department may:
1. Examine any books,  papers,  records or memoranda bearing on the matters required to be included in the return of any taxpayer.
2. Require from a taxpayer's consolidated return,  filed under sections 1501 and 1502 of the United States internal revenue code copies of:
(a) The first page.
(b) Schedule J.
(c) The company balance sheets.
(d) The income statement spreadsheets.
3. Require the attendance of the taxpayer or of any other person having knowledge in the premises and for such purposes may:
(a) Take testimony.
(b) Require material proof for its information.
(c) Administer oaths.
4. Issue subpoenas and subpoenas duces tecum,  signed by the director or his designee,  to be served on any person for the purposes of this section.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1113 - Closing agreements

42-1113.
Closing agreements
The department or any person authorized in writing by the department may enter into a written agreement with a taxpayer relating to the liability of the taxpayer,  or relating to the liability of the person or estate for whom he acts,  in respect of any tax administered pursuant to this article for any taxable period. If an agreement is approved by the department within the time stated in the agreement,  or later agreed to,  it is final and conclusive,  except on a showing of fraud,  malfeasance or misrepresentation of a material fact. The case shall not be reopened as to the matters agreed on or the agreement modified by any officer,  employee or agent of this state. In any suit,  action or proceeding,  the agreement,  or any determination,  assessment,  collection,  payment,  abatement,  refund or credit made pursuant to the agreement,  shall not be annulled,  modified,  set aside or disregarded.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1114 - Suit to recover taxes

42-1114.
Suit to recover taxes
A. The department may bring an action in the name of this state to recover the amount of any taxes,  penalties,  interest or other amounts owed by the taxpayer to the department that are due and unpaid. The department of law shall prosecute the action. In the action a writ of attachment may be issued and no bond or affidavit previous to issuing the attachment is required. In the action a certificate by the department of revenue showing the delinquency is prima facie evidence of the levy of the tax,  of the delinquency and of the compliance by the department of revenue with all the provisions of law relating to the computation and levy of the tax.
B. The department of revenue may bring an appropriate action in any court of competent jurisdiction in the United States or any foreign country in the name of this state to recover the amount of any taxes,  interest and penalties or any other amounts owed by the taxpayer to the department that are due. The department of law shall prosecute the action.
C. The action shall not commence more than ten years after the amount of taxes determined to be due becomes final unless the taxpayer and the department extend the ten year limitation or enforced collection has been stayed by operation of federal or state law. If enforced collection has been stayed,  the period of limitations shall be extended by the period of time that the department was stayed from engaging in enforced collections.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1115 - Payment under protest

42-1115.
Payment under protest
The department shall account for amounts paid under protest until any of the following occurs:
1. A final judgment is rendered and the time for appeal expires.
2. The action begun by the taxpayer is dismissed.
3. Thirty days have elapsed after the order of the department became final and during which time the taxpayer did not begin an action.
4. The department and the taxpayer agree in writing that the amount should no longer be considered to have been paid under protest.
5. The taxpayer has taken no action with respect to the protested amount for a period of sixty days.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1116 - Disposition of tax revenues

42-1116.
Disposition of tax revenues
A. The department of revenue shall promptly deposit,  pursuant to sections 35-146 and 35-147,  all monies it collects from the taxes administered pursuant to this article except the telecommunication services excise tax,  separately accounting for each type of tax and each tax classification within each type of tax. At the same time the department of revenue shall also furnish copies of the transmittal schedules to the director of the department of administration.
B. Except as provided by subsection C of this section,  the department shall deposit all monies and remittances received under this section to the credit of the following specific funds and accounts:
1. Amounts sufficient to meet the requirements for tax refunds to the tax refund account established by section 42-1117.
2. Amounts sufficient to meet the requirements of urban revenue sharing to the urban revenue sharing fund established by section 43-206.
3. Amounts collected pursuant to chapter 5,  articles 1 and 5 of this title to the transaction privilege and severance tax clearing account established by section 42-5029.
4. Amounts sufficient to meet the requirements of section 42-3104 to the corrections fund.
5. Amounts sufficient to meet the requirements of section 49-282,  subsection B relating to the water quality assurance revolving fund.
6. All remaining monies to the state general fund.
C. From the monies and remittances received under this section,  each month beginning July 2001 the state treasurer shall transmit to the tourism and sports authority,  established by title 5,  chapter 8,  for deposit in its facility revenue clearing account established by section 5-834 one-twelfth of the amount reported by the department pursuant to section 43-209.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1116.01 - Department of revenue administrative fund

42-1116.01.
Department of revenue administrative fund
A. The department of revenue administrative fund is established consisting of monies from unclaimed property deposited in the fund pursuant to section 44-313.
B. The director shall administer the fund.
C. Subject to legislative appropriation,  the director shall use monies in the fund solely for the administrative costs of the department.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1116.02 - Department of revenue tax fraud interdiction fund; uses

42-1116.02.
Department of revenue tax fraud interdiction fund;  uses
A. The department of revenue tax fraud interdiction fund is established consisting of fines collected pursuant to section 42-1127,  subsection B,  paragraphs 5 and 6.
B. The director shall administer the fund. Subject to legislative appropriation,  the director shall:
1. Use fifty percent of the monies in the fund to detect violations and enhance tax fraud analytics used to detect violations pursuant to section 42-1127,  subsection B.
2. Transfer fifty percent of the monies in the fund to the attorney general for prosecuting violations pursuant to section 42-1127,  subsection B.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1117 - Tax refund account

42-1117.
Tax refund account
A. A tax refund account is established in the state general fund. The director of the department of administration shall draw all amounts necessary to make refunds under this article from the tax refund account.
B. At any time during the fiscal year if it appears that the amount in the tax refund account exceeds the amount required for refunds,  the director shall transfer the excess amount from the account to the state general fund. If the transfer reduces the amount in the tax refund account below the amount required for refunds,  the director of the department of administration shall adjust the amount transferred for redeposit in the tax refund account to pay such refunds. Any amount remaining in the tax refund account on June 30 of each year exceeding five hundred thousand dollars shall be transferred from the account to the state general fund.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1119 - Denial of refund

42-1119.
Denial of refund
A. If the department disallows any claim for refund,  it shall notify the taxpayer accordingly. The department's action on the claim is final unless the taxpayer appeals to the department in writing within the time and in the manner prescribed by section 42-1251. If the department disallows interest on any claim for refund,  it shall notify the taxpayer accordingly and thereafter the claim shall be treated as a claim for refund.
B. If the department fails to mail or electronically send notice of action on any claim for refund of tax or interest within six months after the claim is filed,  the taxpayer,  before the department's mailing or electronic notice of action on the refund claim,  may consider the claim disallowed. The taxpayer may appeal to the department for a hearing pursuant to section 42-1251.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1120 - Overpayment and underpayment; spouses; trusts and estates

42-1120.
Overpayment and underpayment;  spouses;  trusts and estates
A. If an overpayment is made by a taxpayer for any taxable period and a deficiency is owing from the spouse of the taxpayer for the same period and both the taxpayer and the spouse notify the department in writing before the expiration of the time within which credit for the overpayment may be allowed that the overpayment may be credited against the deficiency,  interest shall not be assessed on such portion of the deficiency as is extinguished by the credit or added to such portion of the overpayment as is applied against the deficiency for the period of time after the date the overpayment was made.
B. If the correction of an erroneous inclusion or deduction of an item or items in the computation of income of a trust,  estate or individual for any year results in an overpayment of income tax for such year by the trust,  estate or individual and also results in a deficiency for the same year for a grantor of such trust or beneficiary of such estate or trust or spouse or child of such individual or spouse of such child,  the overpayment,  if the period within which credit for the overpayment may be allowed has not expired,  shall be credited on the deficiency if the period within which the deficiency may be proposed has not expired,  and the balance,  if any,  shall be credited or refunded. Interest shall not be assessed on such portion of the deficiency as is extinguished by the credit for the period of time after the date the overpayment was made.
C. If the correction of an erroneous inclusion or deduction of an item or items in the computation of income of a grantor of a trust,  beneficiary of an estate or trust,  a child or spouse of a child,  or a spouse for any year results in an overpayment of income taxes for such year by the grantor,  beneficiary,  child or spouse,  and also results in a deficiency for the same year for the trust,  estate or individual,  the overpayment,  if the period within which credit for the overpayment may be allowed has not expired,  shall be credited on the deficiency,  if the period within which the deficiency may be proposed has not expired,  and the balance,  if any,  shall be credited or refunded. Interest shall not be assessed on the portion of the deficiency as is extinguished by the credit or added to such portion of the overpayment as is applied against the deficiency for the period of time after the date the overpayment was made.
D. This section is not intended,  nor shall it be construed,  as a limitation on the department's duty to offset or recoup barred assessments against overpayments.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1121 - Overpayment and underpayment in different tax years

42-1121.
Overpayment and underpayment in different tax years
A. If an overpayment is made by a taxpayer for any taxable period and a deficiency is owing from the same taxpayer for any other taxable period,  the overpayment,  if the period within which credit for the overpayment may be allowed has not expired,  shall be credited on the deficiency if the period within which assessment of the deficiency may be proposed has not expired,  and the balance,  if any,  shall be credited or refunded to the taxpayer. Interest shall not be assessed on the portion of the deficiency that is extinguished by the credit or added to such portion of the overpayment as is applied against the deficiency for the period of time after the date the overpayment was made. For the purposes of this section,  the returns of a decedent and his estate shall be considered returns of the same taxpayer and the returns of the decedent and his estate filed for the year of death shall be considered returns for different taxable years.
B. If the correction of an erroneous inclusion or deduction of an item in the computation of income of any year results in an overpayment of income taxes for one year and a deficiency for another year,  the overpayment,  if the period within which credit for the overpayment may be allowed has not expired,  shall be credited on the deficiency,  if the period within which the deficiency may be proposed has not expired,  and the balance,  if any,  shall be credited or refunded and in any case described by this section no interest may be assessed on the portion of the deficiency that is extinguished by the credit or added to such portion of the overpayment as is applied against the deficiency for the period of time after the date the overpayment was made.
C. This section is not intended,  nor shall it be construed,  as a limitation on the department's duty to offset or recoup barred assessments against overpayments.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1126 - Fee for bad checks; definition

42-1126.
Fee for bad checks;  definition
A. The department may charge and collect a fee of $50 from a taxpayer that offers a check,  draft,  negotiable order of withdrawal or similar instrument,  or an electronic funds transfer,  automated clearing house debit or automated clearing house credit drawn on a bank or other depository institution in full or partial payment of a tax if the instrument,  transfer,  debit or credit is not paid or is dishonored by the institution.
B. For the purposes of this section,  " tax"  includes any tax,  penalty,  interest or fee administered pursuant to this article.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1128 - Recovery of collection costs

42-1128.
Recovery of collection costs
A. A taxpayer who fails to pay any delinquent taxes,  penalties or interest for a tax administered under this article is liable for all costs and expenses incurred by the department to collect the delinquent taxes,  penalties and interest. The department may collect these expenses and costs at the time of collecting the delinquent taxes,  penalties and interest.
B. For the purposes of this section,  expenses include contingent fees paid pursuant to section 42-1004,  subsection B,  paragraph 3.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1129 - Payment of tax by electronic funds transfer

42-1129.
Payment of tax by electronic funds transfer
A. The department may require by rule,  consistent with the state treasurer's cash management policies,  that any tax administered pursuant to this article,  except for individual income tax or as required under section 42-3053,  be paid on or before the payment date prescribed by law in monies that are immediately available to this state on the date of the transfer as provided by subsection B of this section by any taxpayer that owes:
1. $20, 000 or more for any taxable year beginning before January 1,  2019.
2. $10, 000 or more for any taxable year beginning from and after December 31,  2018 through December 31,  2019.
3. $5, 000 or more for any taxable year beginning from and after December 31,  2019 through December 31,  2020.
4. $500 or more for any taxable year beginning from and after December 31,  2020.
B. A payment in immediately available monies shall be made by electronic funds transfer,  with the state treasurer's approval,  that ensures the availability of the monies to this state on the date of payment.
C. A taxpayer may apply to the director,  on a form prescribed by the department,  for an annual waiver from the electronic payment requirement prescribed by subsection B of this section. The application must be received by the department on or before December 31. The director may grant the waiver,  which may be renewed,  if any of the following applies:
1. The taxpayer has no computer.
2. The taxpayer has no internet access.
3. Any other circumstance considered to be worthy by the director exists,  including the taxpayer having a sustained record of timely payments and no delinquent tax account with the department.
D. The taxpayer shall furnish evidence as prescribed by the department that an electronic payment was remitted on or before the due date.
E. A taxpayer who is required to pay by electronic funds transfer but who fails to do so may be subject to the civil penalties prescribed by section 42-1125,  subsection O.
F. A failure to make a timely payment in immediately available monies as prescribed pursuant to this section is subject to the civil penalties prescribed by section 42-1125,  subsection D.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1131 - Electronic signatures; definition

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.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1151 - Lien

42-1151.
Lien
A. If any tax,  interest,  penalty or other amount owed by the taxpayer to the department that the department is required to collect is not paid by a taxpayer when due,  such unpaid amounts constitute a lien upon all property and rights to property,  whether real or personal,  belonging to the taxpayer or acquired by the taxpayer from the date the amounts are assessed or the date the return prescribing the liability is filed until the liability for the assessed amounts is satisfied.
B. The lien prescribed in this section is not valid against the following until the notice of the lien is filed as prescribed in section 42-1152:
1. A mechanic's lienholder who holds a lien pursuant to title 33,  chapter 7,  article 6. The lien exists on the later of the date the lien becomes valid against subsequent purchasers without actual notice or the date the lienholder begins to furnish the services,  labor or materials.
2. A purchaser who,  for adequate and full consideration in money or money's worth,  acquires an interest in property,  other than a lien or security interest,  which is valid against subsequent purchasers without actual notice. Any of the following which is not a lien or security interest is an interest in property:
(a) A lease of property.
(b) A written executory contract to purchase or lease property.
(c) An option to purchase or lease property or any interest in property.
(d) An option to review or extend a lease of property.
3. A holder of a security interest in property acquired by contract to secure payment or performance of an obligation or to indemnify against loss or liability. A security interest exists:
(a) If the property exists and the interest has become protected against a subsequent judgment lien arising out of an unsecured obligation.
(b) To the extent that the holder has parted with money or money's worth.
4. A judgment lien creditor.
C. Although a notice of lien has been filed as prescribed by section 42-1152,  the lien is not valid against:
1. Personal property purchased in casual sale as provided in section 6323 of the internal revenue code.
2. Residential property subject to a mechanic's lien for certain repairs and improvements as provided in section 6323 of the internal revenue code.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1152 - Filing of lien; notice; recording

42-1152.
Filing of lien;  notice;  recording
A. The notice prescribed in section 42-1151,  subsection B may be filed by the department against the taxpayer's real property located in any county by recording a notice of lien in the form prescribed by subsection C of this section in the office of the county recorder.
B. The notice prescribed in section 42-1151,  subsection B may be filed by the department against the taxpayer's personal property or rights to personal property located within this state by recording a notice of lien in the form prescribed by subsection C of this section in the office of the secretary of state.
C. A notice of lien recorded under this section shall specify the nature of the tax,  the amount of tax,  interest and penalty and other amounts owed by the taxpayer to the department that are due,  the taxable periods for which such amounts are due and the name and last known address of the taxpayer liable for such amounts.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1153 - Release or subordination of lien

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.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1154 - Priority of tax claim

42-1154.
Priority of tax claim
A. The amounts required to be collected by the department,  with interest and penalties,  shall be satisfied first in any of the following cases:
1. If the person is insolvent.
2. If the person makes a voluntary assignment of assets.
3. If the estate of the person in the hands of executors,  administrators or heirs is insufficient to pay all debts due from the deceased.
4. If the estate and effects of an absconding,  concealed or absent person required to pay any amount under this title are levied upon by process of law.
B. This section does not give this state a preference over any recorded lien which was recorded prior to the time the department recorded a notice of lien pursuant to section 42-1152.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1155 - Voluntary liens on property; security for delinquent taxes

42-1155.
Voluntary liens on property;  security for delinquent taxes
The department may accept voluntary liens on real or personal property pledged by any person as security for any tax which the department is required to collect which is not paid by a taxpayer when due. A voluntary lien shall be perfected and treated in all respects the same as any other lien under this article.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1201 - Levy and distraint; definition

42-1201.
Levy and distraint;  definition
A. If a person liable to pay any tax neglects or refuses to pay the tax,  the department may collect the tax,  interest,  penalty,  other amounts owed to the department and such other sums as are sufficient to cover the expenses of the levy,  by levy upon:
1. All property and rights to property,  except property exempt under section 42-1204,  belonging to the person or on which there is a lien as provided in article 4 of this chapter or section 42-17153 for the payment of the tax.
2. The accrued salary or wages of any officer,  employee or elected official of this state or its political subdivisions,  or any agency or instrumentality of this state or its political subdivisions,  by serving a notice of levy on:
(a) The department of administration in the case of state wages or salaries.
(b) The chief disbursing officer of a political subdivision of the state in the case of wages or salaries paid by the political subdivision.
B. The levy shall not be made more than ten years after the amount of tax determined to be due becomes final. The taxpayer and the department may extend the ten year limitation prescribed by this subsection for any length of time by executing a written agreement before the expiration of the ten year limitation. If enforced collection has been stayed by operation of federal or state law,  the period of limitations shall be extended by the period of time that the department was stayed from engaging in enforced collections.
C. As used in this chapter,  " levy"  includes the power of distraint and seizure by any means. Except as otherwise provided in subsection E or F of this section,  a levy extends only to property possessed and obligations existing at the time of the levy or within twenty-one days after the date of the levy. In any case in which the department may levy upon property or rights to property,  it may seize and sell the property or rights to the property,  whether real or personal,  tangible or intangible.
D. If any property or right to property upon which a levy has been made under subsection A of this section is not sufficient to satisfy the claim of the department for which the levy is made,  the department may as often as may be necessary proceed to levy in like manner upon any other property liable to levy of the person against whom such claim exists,  until the amount due,  together with all expenses,  is fully paid.
E. The effect of a levy on salary or wages payable to or received by a taxpayer is continuous from the date the levy is first made until the liability out of which the levy arose is satisfied or becomes unenforceable.
F. With respect to a levy described in subsection E of this section,  the department shall promptly release the levy when the liability out of which the levy arose is satisfied or becomes unenforceable and shall promptly notify the person upon whom the levy was made that the levy has been released.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1203 - Production of books

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.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1204 - Property exempt from levy

42-1204.
Property exempt from levy
A. The following property is exempt from levy:
1. Wearing apparel and school books as are necessary for the taxpayer or members of his family.
2. So much of the fuel,  provisions,  furniture,  personal effects,  arms for personal use,  livestock and poultry as provided for in section 6334 of the internal revenue code.
3. The books and tools necessary for the trade,  business or profession of the taxpayer as provided for in section 6334 of the internal revenue code.
4. Mail,  addressed to any person,  which has not been delivered to the addressee.
5. If the taxpayer is required by judgment of a court of competent jurisdiction,  entered prior to the date of levy,  to contribute to the support of his minor children,  so much of his salary,  wages or other income as is necessary to comply with such judgment.
6. Any amount payable to or received by an individual as wages or salary for personal services,  or as income derived from other sources,  during any period,  to the extent that the total of such amounts payable to or received by him during such period does not exceed the applicable exempt amount determined under subsection D of this section.
B. The officer seizing property of the type described in subsection A of this section shall appraise and set aside to the owner the amount of such property declared to be exempt. If the taxpayer objects at the time of the seizure to the valuation fixed by the officer making the seizure,  the department shall summon three disinterested individuals who shall make the valuation.
C. Notwithstanding any other law of this state,  no property or rights to property shall be exempt from the levy provided in this article other than the property specifically made exempt by subsection A of this section.
D. The following wages,  salary and other income payable to or received by an individual are exempt from levy under subsection A,  paragraph 6 of this section:
1. In the case of an individual who is paid or receives all wages,  salary and other income on a weekly basis,  the amount of such compensation received during any week which is exempt from levy is the amount determined pursuant to section 6334(d) of the internal revenue code and which is verified in such manner as set forth in section 6334.
2. In the case of any individual not described in paragraph 1 of this subsection,  the amount of the wages,  salary and other income payable to or received during any applicable pay period or other fiscal period,  as determined under rules prescribed by the department,  which is exempt from levy under subsection A,  paragraph 6 of this section is an amount,  determined under such rules,  which as nearly as possible will result in the same total exemption from levy for such individual over a period of time as the individual would have under paragraph 1 of this subsection if,  during such period of time,  the individual were paid or received such wages,  salary and other income on a regular weekly basis.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1205 - Notice and sale of seized property

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.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1206 - Authority to release levy and return property

42-1206.
Authority to release levy and return property
A. The department may under prescribed rules release the levy upon all or part of the property or rights to property levied upon if the department determines that such action will facilitate the collection of the liability. Such release shall not operate to prevent any subsequent levy.
B. If the department determines that property has been wrongfully levied upon,  the department may return:
1. The specific property levied upon.
2. An amount of money equal to the amount of money levied upon.
3. An amount of money equal to the amount of money received by this state from a sale of such property.
C. Property may be returned at any time. An amount equal to the amount of money levied upon or received from such sale may be returned at any time before the expiration of nine months from the date of such levy.
D. In its discretion and at any time,  the department may release a levy or return property levied on if the department determines that any of the following conditions applies:
1. The levy was premature or otherwise in violation of the department's administrative procedures.
2. The taxpayer has entered into an installment payment agreement,  unless the agreement provides otherwise.
3. The department's interests are best served by the release or return.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1207 - Financial institutions data match; prohibited disclosure; civil liability; fee; definition

42-1207.
Financial institutions data match;  prohibited disclosure;  civil liability;  fee;  definition
A. The department may enter into agreements with financial institutions that conduct business in this state to develop and operate a data match system to assist the department in the collection of delinquent taxes,  penalties and interest. The data match system shall use automated data exchange procedures to the maximum extent possible.
B. Any data exchanges between financial institutions and the department under an agreement pursuant to subsection A shall occur quarterly. The data exchanges shall include the name,  address of record,  social security number or other taxpayer identification number and any other identifying information for each delinquent taxpayer who maintains an account at the institution and who owes delinquent taxes as identified by the department by name and social security number or other taxpayer identification number.
C. The department or its agent may only disclose a person's financial record under this section in order to enforce the collection of a person's delinquent tax obligation.
D. A department employee who knowingly or negligently discloses a person's financial records in violation of subsection C is subject to civil liability in an amount equal to the greater of either:
1. One thousand dollars for each act of unauthorized disclosure of a financial record with respect to which the department employee is found liable.
2. The sum of the actual damages sustained by the plaintiff as a result of the unauthorized disclosure and,  in the case of a wilful disclosure or a disclosure that is the result of gross negligence,  punitive damages,  including costs and attorney fees.
E. The department may pay a reasonable fee to a financial institution for conducting a data match. The fee shall not exceed the actual costs incurred by the financial institution.
F. For the purposes of this section,  " financial institution"  means state and federally chartered banks,  trust companies,  federal and state savings and loan associations,  federal and state credit unions,  consumer lenders,  international banking facilities and financial institution holding companies,  insurance companies,  benefit associations,  safe deposit companies,  money market mutual funds and similar institutions authorized to do business in this state and any party affiliated with these financial institutions.
2023 Arizona Revised Statutes › Title 42 - Taxation › § 42-1251.01 - Appeals of suspension, revocation or refusal to renew liquor licenses; hearings; definition

42-1251.01.
Appeals of suspension,  revocation or refusal to renew liquor licenses;  hearings;  definition
A. A suspension,  revocation or refusal to renew a liquor license by the director of the department of liquor licenses and control pursuant to section 4-210,  subsection A,  paragraph 5 are considered a contested case.
B. The aggrieved party may appeal the suspension,  revocation or refusal to renew by the director pursuant to section 4-210,  subsection A,  paragraph 5 based on a contention that the business is either:
1. Not delinquent on any taxes,  penalties or interest owed to this state or a political subdivision of this state.
2. Delinquent on its taxes,  penalties and interest for less than one hundred twenty days.
3. Delinquent on its taxes,  penalties and interest in an amount that totals $250 or less.
C. The aggrieved party shall file the appeal in writing with the department of revenue within fifteen days after service of the notice of the decision of the director. The decision of the director is suspended until the determination of any appeal by the office of administrative hearings.
D. An administrative law judge shall conduct a hearing on the appeal pursuant to title 41,  chapter 6,  article 10 and may accept any relevant and material evidence and testimony and may exercise the actions prescribed by section 4-112,  subsection F or section 12-2212. At the hearing,  an attorney for or a corporate officer or employee of a corporation may represent the corporation.
E. A decision issued by the director is not final for purposes of appeal to the superior court until a decision has been issued by the office of administrative hearings.
F. The office of administrative hearings may affirm,  reverse or modify any decision issued by the director.
G. For the purposes of this section,  " director"  means the director of the department of liquor licenses and control.