reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1130 - Amortization of the cost of child care facilities

43-1130.
Amortization of the cost of child care facilities
A. At the election of any corporate taxpayer operating a child care facility for the purpose of making profit,  any expenditure made to purchase,  construct,  renovate or remodel child care facilities or equipment shall be allowable as a subtraction ratably over a period of sixty months,  beginning with the month in which the property is placed in service.
B. At the election of a taxpayer operating a child care facility within this state primarily for the children of employees of the taxpayer,  any expenditure made to acquire,  construct,  renovate or remodel the child care facility or equipment is allowable as a subtraction ratably over a period of twenty-four months beginning with the month in which the property is placed in service.
C. The subtraction provided by this section shall be in lieu of any allowance for the exhaustion,  wear and tear of such property used in a trade or business or of property held for the production of income,  including a reasonable allowance for obsolescence pursuant to section 167 or 188 of the internal revenue code.
D. In the case of a partnership,  joint venture or other pooled investment or joint ownership of child care property each participating corporate owner may claim the pro rata share of the subtraction based on the corporate ownership interest in the property. The total of the subtractions allowed all such owners of the property shall not exceed the amount that would have been allowed for a sole owner of the property.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1131 - Definitions

43-1131.
Definitions
As used in this article,  unless the context otherwise requires:
1. " Business income"  means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition,  management and disposition of the property constitute integral parts of the taxpayer's regular trade or business operations.
2. " Commercial domicile"  means the principal place from which the trade or business of the taxpayer is directed or managed.
3. " Compensation"  means wages,  salaries,  commissions and any other form of remuneration paid to employees for personal services.
4. " Nonbusiness income"  means all income other than business income.
5. " Sales"  means all gross receipts of the taxpayer not allocated under this article.
6. " State"  means any state of the United States,  the District of Columbia,  the Commonwealth of Puerto Rico,  any territory or possession of the United States and any foreign country or political subdivision thereof.
7. " Taxpayer"  means any person subject to the tax imposed by this title.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1132 - Taxpayers liable; exceptions to allocation and apportionment; examination of evidence of income and expenses

43-1132.
Taxpayers liable;  exceptions to allocation and apportionment;  examination of evidence of income and expenses
A. Any taxpayer having income from business activity which is taxable both within and without this state shall allocate and apportion net income as provided in this article,  but net income of a foreign corporation which is not itself subject to the tax imposed by this title shall not be allocated or apportioned to this state.
B. For the purposes of computing Arizona taxable income under this title,  expenses which are attributable to income of a foreign corporation which is not itself subject to the tax imposed by this title shall not be allocated or apportioned to this state.
C. In the case of an audit performed on a taxpayer by the department,  the department may examine any books,  papers,  records or memoranda of the taxpayer relating to income and expenses of the taxpayer both within and without the United States. The information provided by the taxpayer is subject to title 42,  chapter 2,  article 1.
D. Subsections A and B of this section do not apply to a taxpayer that has elected to file a consolidated return pursuant to section 43-947. An Arizona affiliated group,  as defined in section 43-947,  that has income from business activity that is taxable both in and outside this state shall allocate and apportion its net income as provided by this article.
E. The net income of a taxpayer that would otherwise meet the requirements of 15 United States Code sections 381 through 384 but that is subject to the tax imposed by this title solely because of the presence of consignment inventory in this state shall not be allocated or apportioned to this state if all of the following conditions are met:
1. The presence of the consignment inventory is a requirement of the taxpayer's contract with its customer.
2. The consignment inventory is located on the customer's property.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1133 - Taxability in other state

43-1133.
Taxability in other state
For purposes of allocation and apportionment of income under this article,  a taxpayer is taxable in another state if either of the following applies:
1. In that state he is subject to a net income tax,  a franchise tax measured by net income,  a franchise tax for the privilege of doing business or a corporate stock tax.
2. That state has jurisdiction to subject the taxpayer to a net income tax regardless of whether,  in fact,  the state does or does not.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1134 - Allocation of nonbusiness income

43-1134.
Allocation of nonbusiness income
Rents and royalties from real or tangible personal property,  capital gains,  interest,  dividends or patent or copyright royalties,  to the extent that they constitute nonbusiness income,  shall be allocated as provided in sections 43-1135 through 43-1138.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1135 - Net rents and royalties

43-1135.
Net rents and royalties
A. Net rents and royalties from real property located in this state are allocable to this state.
B. Net rents and royalties from tangible personal property are allocable to this state either:
1. If and to the extent that the property is utilized in this state.
2. In their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
C. The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction,  the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer,  tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1136 - Capital gains and losses

43-1136.
Capital gains and losses
A. Capital gains and losses from sales of real property located in this state are allocable to this state.
B. Capital gains and losses from the sales of tangible personal property are allocable to this state if either:
1. The property had a situs in this state at the time of the sale.
2. The taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.
C. Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1138 - Patent and copyright royalties

43-1138.
Patent and copyright royalties
A. Patent and copyright royalties are allocable to this state either:
1. If and to the extent that the patent or copyright is utilized by the payer in this state.
2. If and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
B. A patent is utilized in a state to the extent that it is employed in production,  fabrication,  manufacturing or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization,  the patent is utilized in the state in which the taxpayer's commercial domicile is located.
C. A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization,  the copyright is utilized in the state in which the taxpayer's commercial domicile is located.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1140 - Property factor

43-1140.
Property factor
The property factor is a fraction,  the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period other than real and tangible personal property used by either:
1. A foreign corporation which is not itself subject to the tax imposed by this title,  unless the corporation is subject to the tax as a member of an Arizona affiliated group,  as defined in section 43-947.
2. An insurance company that is exempt from tax under section 43-1201.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1141 - Valuation of property

43-1141.
Valuation of property
Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1143 - Payroll factor

43-1143.
Payroll factor
The payroll factor is a fraction,  the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation,  and the denominator of which is the total compensation paid everywhere during the tax period other than compensation paid by either:
1. A foreign corporation which is not itself subject to the tax imposed by this title,  unless the corporation is subject to the tax as a member of an Arizona affiliated group,  as defined in section 43-947.
2. An insurance company that is exempt from tax under section 43-1201.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1144 - Compensation paid in state

43-1144.
Compensation paid in state
Compensation is paid in this state if any of the following apply:
1. The individual's service is performed entirely within this state.
2. The individual's service is performed both within and without the state,  but the service performed without the state is incidental to the individual's service within the state.
3. Some of the service is performed in the state and the base of operations or,  if there is no base of operations,  the place from which the service is directed or controlled is in the state,  or the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed,  but the individual's residence is in this state.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1145 - Sales factor

43-1145.
Sales factor
The sales factor is a fraction,  the numerator of which is the total sales of the taxpayer in this state during the tax period,  and the denominator of which is the total sales of the taxpayer everywhere during the tax period other than sales of either:
1. A foreign corporation which is not itself subject to the tax imposed by this title,  unless the corporation is subject to the tax as a member of an Arizona affiliated group,  as defined in section 43-947.
2. An insurance company that is exempt from tax under section 43-1201.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1146 - Situs of sales of tangible personal property

43-1146.
Situs of sales of tangible personal property
Sales of tangible personal property are considered to be in this state if the property is delivered or shipped to a purchaser,  other than the United States government,  within this state regardless of the F.O.B. point or other conditions of the sale.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1148 - Apportionment by department

43-1148.
Apportionment by department
A. If the allocation and apportionment provisions of this article do not fairly represent the extent of the taxpayer's business activity in this state,  the taxpayer may petition for or the department may require,  in respect to all or any part of the taxpayer's business activity,  if reasonable,  any of the following:
1. Separate accounting,  except with respect to an Arizona affiliated group,  as defined in section 43-947.
2. The exclusion of any one or more of the factors.
3. The inclusion of one or more additional factors which will fairly represent the taxpayer's business activity in this state.
4. The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer's income,  other than disallowing a properly elected consolidated return.
B. If the department,  in the exercise of its discretion,  determines that an adjustment is necessary pursuant to subsection A of this section,  it may,  in its discretion,  authorize such an adjustment for a period of not less than one taxable year.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1151 - Tax clearance upon cessation of corporate activities

43-1151.
Tax clearance upon cessation of corporate activities
A. No decree of involuntary dissolution shall be made,  entered or filed by any court or court clerk nor shall the corporation commission file any such decree or any document by which the term of existence of any corporation shall be voluntarily reduced or terminated or any certificate of the surrender by a foreign corporation as defined in section 10-140 of its right to do business in this state unless the taxpayer obtains from the department and files with the court,  clerk or corporation commission a certificate to the effect that the department is satisfied from the available evidence that all taxes imposed by this title have been paid or are secured by bond,  deposit or otherwise.
B. Within thirty days after receiving a request for a certificate,  the department shall either issue the certificate or notify the person requesting the certificate of the amount of tax that must be paid or the amount of bond,  deposit or other security that must be furnished as a condition of issuing the certificate.
C. The issuance of the certificate shall not relieve the corporation or any individual from liability for any taxes,  penalties or interest imposed by this title.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1152 - Powers of corporation suspended for nonpayment of tax

43-1152.
Powers of corporation suspended for nonpayment of tax
Except for the purpose of amending the articles of incorporation to set forth a new name,  the corporate powers,  rights and privileges of a domestic corporation as defined in section 10-140 shall be suspended,  and the exercise of the corporate powers,  rights and privileges of a foreign corporation as defined in section 10-140 in this state shall be forfeited,  if any of the following conditions occurs:
1. If any tax,  penalty or interest,  or any portion thereof,  which is due and payable either at the time the return is required to be filed,  or on or before the fifteenth day of the ninth month following the close of the income year,  is not paid on or before 5:00 p.m. on the last day of the twelfth month after the close of the income year.
2. If any tax,  penalty or interest,  or any portion thereof,  other than jeopardy or fraud assessments,  due and payable upon notice and demand from the department,  is not paid on or before 5:00 p.m. on the last day of the eleventh month following the due date of such tax.
3. If any jeopardy or fraud assessment,  or any interest or penalty thereon,  is not paid within forty days from the date of such tax,  penalty and interest are due and payable upon notice and demand from the department,  unless the bond permitted by section 42-1111,  subsection B is filed to stay the collection of the tax,  interest or penalty,  and such tax,  interest or penalty is paid within sixty days after notice by the department on the taxpayer's petition for reassessment.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1153 - Certificate of suspension of a corporation

43-1153.
Certificate of suspension of a corporation
The department shall transmit the name of any corporation delinquent pursuant to section 43-1152 to the corporation commission,  and the prescribed suspension or forfeiture shall become effective immediately and the certificate of the corporation commission shall be prima facie evidence of such suspension or forfeiture.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1154 - Penalty for exercising powers after suspension

43-1154.
Penalty for exercising powers after suspension
Any person who attempts or purports to exercise any of the rights,  privileges or powers of any corporation suspended pursuant to section 43-1152 except as permitted by this article,  or who transacts any intrastate business in the state in behalf of any such foreign corporation,  shall be guilty of a class 1 misdemeanor. The jurisdiction of such offense shall be held to be in any county in which such transaction of business occurred and the county attorney of the county shall prosecute such offense. In addition to the penal provisions in this section,  any taxpayer which transacts business during the period of suspension or forfeiture shall be subject to tax under the provisions of this title.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1156 - Application for revival of corporate powers

43-1156.
Application for revival of corporate powers
A. Any taxpayer which has suffered the suspension or forfeiture provided for in section 43-1152 may be relieved therefrom upon making application in writing to the department and upon payment of the tax and the interest and penalties for nonpayment of which the suspension or forfeiture occurred,  together with all other taxes,  deficiencies,  interest and penalties due under this title.
B. Application for such certificate on behalf of any domestic corporation as defined in section 10-140 which has suffered such suspension may be made by any stockholder or creditor or by a majority of the surviving trustees or directors thereof.
C. Application for such certificate may be made by any foreign corporation as defined in section 10-140 which has suffered such forfeiture or by any stockholder or creditor thereof.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1157 - Clearance of revivor by corporation commission

43-1157.
Clearance of revivor by corporation commission
A. Before any certificate of revivor is issued by the department it shall obtain from the corporation commission an endorsement upon such application of the fact that such corporation then qualifies for revival of corporate powers,  rights and privileges.
B. Upon the issuance of such certificate by the department,  the taxpayer therein named shall become reinstated. Such reinstatement shall be without prejudice to any action,  defense or right which has accrued by reason of the original suspension or forfeiture.
C. The certificate of revivor shall be prima facie evidence of such reinstatement and such certificate may be recorded in the office of the county recorder of any county of this state.
D. A copy of such certificate shall be forwarded to the corporation commission for its files.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1158 - Treatment of installment obligations on cessation of corporate activities

43-1158.
Treatment of installment obligations on cessation of corporate activities
If a corporation has elected to report income from the sale or other disposition of property on the installment method,  and the entire income from the sale has not been reported before the year the corporation ceases to be subject to the tax imposed by this title,  the corporation shall report the unreported income in the last year in which the corporation is subject to the tax. This section does not apply if the installment obligation is transferred pursuant to a reorganization to another taxpayer subject to tax under this title as the transferee,  but capital losses of the transferee may not be used to offset income from the installment obligation transferred from a corporation which has ceased to be subject to the tax.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1163 - Affordable housing tax credit

43-1163.
Affordable housing tax credit
(Rpld. 1/1/26)
A. A taxpayer is allowed a credit against the taxes imposed by this title if the Arizona department of housing issues an eligibility statement for a qualified project pursuant to section 41-3954. The amount of the credit:
1. Is equal to at least fifty percent of the amount of the federal low-income housing credit for the qualified project.
2. On notice to the department of revenue,  may be allocated among the partners,  members or shareholders,  as they may agree among themselves regardless of the size of such participant's ownership interest. The total of the allocated credits among all such participants may not exceed the amount of the credit approved by the Arizona department of housing. This paragraph does not prohibit a partner,  member or shareholder from holding an investment exclusively in either the state credits or federal credits allocated to the qualified project.
B. To claim the credit under this section,  the taxpayer must submit the eligibility statement provided by the Arizona department of housing under section 41-3954 to the department of revenue with the taxpayer's income tax return. A credit under this section is not allowed until the taxpayer furnishes the required documentation.
C. If the amount of the credit for a taxable year exceeds the amount of taxes otherwise due under this title on the claimant's income,  or if there are no taxes due under this title,  the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.
D. If all or part of the federal low-income housing tax credit with respect to the qualified project is subject to recapture under section 42 of the internal revenue code during the first ten taxable years after the project is placed in service,  the credit under this section is also subject to recapture in a proportional amount from all taxpayers that claimed the credit. The recapture is calculated by increasing the amount of taxes imposed in the following year by the amount recaptured.
E. The department of revenue,  with the cooperation of the department of insurance and financial institutions and the Arizona department of housing,  shall adopt rules and publish and prescribe forms and procedures as necessary to administer this section.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1164 - Credit for solar energy devices; commercial and industrial applications

43-1164.
Credit for solar energy devices;  commercial and industrial applications
A. For taxable years beginning from and after December 31,  2005 through December 31,  2018,  a credit is allowed against the taxes imposed by this title for a taxpayer that is either:
1. Installing one or more solar energy devices,  as defined in section 42-5001 and certified pursuant to section 41-1510.01,  during the taxable year for commercial,  industrial or any other nonresidential application in the taxpayer's facility located in this state.
2. The third party organization that financed,  installed or manufactured the solar energy device that qualifies for the credit under paragraph 1 of this subsection if the taxpayer or an entity exempt from taxation under chapter 12 of this title who otherwise would qualify for this credit transfers the credit on a form prescribed by the department to the third party organization.
B. The amount of the credit is equal to ten per cent of the installed cost of the device.
C. The person who provides or installs the device shall furnish the taxpayer with an accounting of the cost to the taxpayer.
D. The taxpayer may not cumulate total tax credits under this section exceeding twenty-five thousand dollars with respect to the same building in the same year or fifty thousand dollars in total credits in any year.
E. If the allowable credit exceeds the taxes otherwise due under this title on the claimant's income,  or if there are no taxes due under this title,  the amount of the claim not used to offset taxes under this title may be carried forward for not more than five consecutive taxable years as a credit against subsequent years' income tax liability.
F. Co-owners of a business,  including corporate partners in a partnership,  may each claim only the pro rata share of the credit allowed under this section based on the ownership interest or financial investment in the system. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1167.01 - Credit for employing national guard members

43-1167.01.
Credit for employing national guard members
A. For taxable years beginning from and after December 31,  2005,  a credit is allowed against the taxes imposed by this title for a taxpayer whose employee is a member of the Arizona national guard if the employee is placed on active duty. The amount of the credit is one thousand dollars for each employee who is placed on active duty by the Arizona national guard.
B. To qualify for the credit:
1. The employee must be a member of the Arizona national guard who is employed by the taxpayer in a full-time equivalent position when the employee is placed on active duty.
2. Each member of the Arizona national guard who is employed must have served during the taxable year on active duty for training that exceeds the required annual training period,  including any activation for federal or state contingencies or emergencies.
C. If the allowable credit exceeds the taxes otherwise due under this title on the claimant's income,  or if there are no taxes due under this title,  the amount of the claim not used to offset taxes under this title may be carried forward for not more than five consecutive taxable years as a credit against subsequent years' income tax liability.
D. The credit under this section may be claimed only once by the taxpayer in any taxable year with respect to each employee who is placed on active duty by the Arizona national guard,  but may be claimed again for that employee in a subsequent taxable year if that employee remains on active duty or is placed again on active duty in a subsequent taxable year.
E. Co-owners of a business,  including corporate partners in a partnership,  may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1170 - Credit for pollution control equipment

43-1170.
Credit for pollution control equipment
A. A credit is allowed against the taxes imposed by this title for expenses that the taxpayer incurred during the taxable year to purchase real or personal property that is used in the taxpayer's trade or business in this state to control or prevent pollution. The amount of the credit is equal to ten percent of the purchase price.
B. Property that qualifies for the credit under this section includes that portion of a structure,  building,  installation,  excavation,  machine,  equipment or device and any attachment or addition to or reconstruction,  replacement or improvement of that property that is directly used,  constructed or installed in this state for the purpose of meeting or exceeding rules or regulations adopted by the United States environmental protection agency,  the department of environmental quality or a political subdivision of this state to prevent,  monitor,  control or reduce air,  water or land pollution that results from the taxpayer's direct operating activities in conducting a trade or business in this state.
C. The credit allowed pursuant to this section does not apply to:
1. The purchase of any personal property that is attached to a motor vehicle.
2. Any property that has a substantial use for a purpose other than the purposes described in subsection B.
3. Any portion of pollution control property that is included as a standard and integral part of another property.
D. Amounts that qualify for a credit under this section must be includible in the taxpayer's adjusted basis for the property. The adjusted basis of any property with respect to which the taxpayer has claimed a credit shall be reduced by the amount of credit claimed with respect to that asset. This credit does not affect the deductibility for depreciation or amortization of the remaining adjusted basis of the asset.
E. Co-owners of a business,  including corporate partners in a partnership,  may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. Partners in a partnership that is not a corporation may not claim a share of the credit. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
F. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income,  or if there are no taxes due under this title,  the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five taxable years' income tax liability.
G. The maximum credit that a taxpayer may claim under this section is $500, 000 in a taxable year.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1178 - Credit for taxes with respect to coal consumed in generating electrical power

43-1178.
Credit for taxes with respect to coal consumed in generating electrical power
A. A credit is allowed against the taxes imposed by this title for a taxpayer that purchases coal consumed in generating electrical power in this state. The credit is equal to thirty per cent of the amount paid by the seller or purchaser as transaction privilege or use tax with respect to the coal sold to the taxpayer.
B. Co-owners of a business,  including corporate partners in a partnership,  may claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all of the owners of the business may not exceed the amount that would have been allowed for a sole owner of the business.
C. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income,  or if there are no taxes due under this title,  the amount of the claim not used as an offset against income taxes may be carried forward to the next five consecutive taxable years as a credit against subsequent years income tax liability.
D. The credit under this section is in lieu of any allowance for state tax purposes for a deduction for the expenses allowed by the internal revenue code.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1201 - Organizations exempt from tax

43-1201.
Organizations exempt from tax
(Caution: 1998 Prop. 105 applies)
A. Except as otherwise provided in this chapter,  the following organizations are exempt from the taxes imposed under this title:
1. Organizations that are exempt from federal income tax under section 501 of the internal revenue code.
2. Insurance companies that pay to this state a tax on premium income derived from sources within this state.
B. Nonprofit medical marijuana dispensaries under title 36,  chapter 28.1,  are exempt from the taxes imposed under this title.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1202 - Feeder organizations not exempt from tax; definition

43-1202.
Feeder organizations not exempt from tax;  definition
A. An organization that is operated for the primary purpose of carrying on a trade or business for profit is not exempt under any provision of this chapter on the ground that all of its profits are payable to one or more organizations exempt under this section from taxation.
B. For the purposes of this section,  " trade or business"  has the same meaning prescribed in section 502 of the internal revenue code and regulations adopted pursuant to that section.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1212 - Denial of exempt status due to prohibited transactions; restoration of exempt status

43-1212.
Denial of exempt status due to prohibited transactions;  restoration of exempt status
A. An organization that is denied exemption from federal income tax for engaging in prohibited transactions as provided by section 503 of the internal revenue code is also denied exemption under section 43-1201. The denial applies to taxable years after the taxable year during which the organization is notified by the department or by the United States internal revenue service that it has engaged in a prohibited transaction,  unless the organization entered into the prohibited transaction with the purpose of diverting corpus or income of the organization from its exempt purposes and the transaction involved a substantial part of the corpus or income of the organization.
B. An organization that is denied an exemption pursuant to subsection A of this section with respect to any taxable year following the taxable year in which the notice was received may have its exempt status under section 43-1201 restored at the same time the organization's exempt status is restored for federal income tax purposes under section 503 of the internal revenue code.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1231 - Taxation of unrelated business income

43-1231.
Taxation of unrelated business income
Any organization,  trust or church or a convention or association of churches that is exempt,  except as provided in this section,  from taxation under this title by reason of section 43-1201 is subject to the tax imposed under section 43-1111 on its unrelated business taxable income as defined in section 512 of the internal revenue code.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1241 - Returns of unrelated business income

43-1241.
Returns of unrelated business income
Every organization,  otherwise exempt under section 43-1201 but having unrelated business taxable income,  shall:
1. File a return,  verified by an executive officer under penalties of perjury in the form prescribed by the department on or before the fifteenth day of the fifth month after the close of the taxable year,  reporting its income from such activities.
2. Pay a tax at the rates prescribed in section 43-1111 on its unrelated business taxable income as defined in section 43-1231.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1242 - Information returns of tax-exempt organizations; definition

43-1242.
Information returns of tax-exempt organizations;  definition
A. Every organization that is exempt under section 43-1201,  subsection B shall annually file a return with the department on a form prescribed by the department on or before the fifteenth day of the fifth month after the close of the taxable year. The return shall include:
1. The organization's gross receipts for the year.
2. The organization's expenses incurred within the year.
3. A balance sheet showing the organization's assets,  liabilities and net worth as of the beginning and end of the year.
4. Such other information as the department may prescribe by rule.
B. For the purposes of this section,  " gross receipts"  means the total amount the organization received from all sources during its annual tax year without subtracting any costs or expenses.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1301 - Definitions; estates and trusts

43-1301.
Definitions;  estates and trusts
In this chapter,  unless the context otherwise requires:
1. " Arizona gross income"  means:
(a) Of a nonresident estate or trust,  the taxable income from sources within this state for the taxable year,  computed according to the internal revenue code.
(b) Of a resident estate or trust,  the taxable income for the taxable year,  computed according to the internal revenue code.
2. " Arizona taxable income"  of a resident or nonresident estate or trust means its Arizona gross income adjusted by the modifications specified in article 3 of this chapter.
3. " Nonresident estate or trust"  means an estate or trust that is not a resident estate or trust.
4. " Resident estate"  means the estate of a decedent who was a resident of this state at the time of death.
5. " Resident trust"  means a trust of which the fiduciary is a resident of this state. If a trust has more than one fiduciary,  the trust is a resident trust if at least one of the fiduciaries is a resident of this state. If a corporate fiduciary engaged in interstate trust administration is the sole fiduciary of a trust,  or is a cofiduciary with a nonresident,  the trust is a resident trust only if the corporate fiduciary conducts the administration of the trust in this state.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1311 - Tax imposed on estates and trusts; rates; annual adjustment

43-1311.
Tax imposed on estates and trusts;  rates;  annual adjustment
A. Except for trusts that are taxable as partnerships or corporations under the internal revenue code,  the income of estates or of any kind of property held in trust is subject only to the income tax imposed by subsection B of this section.
B. There shall be levied,  collected and paid for each taxable year on the entire taxable income of every resident trust of this state and on the entire taxable income of nonresident trust that is derived from sources within this state taxes determined in the following manner:
1. For taxable years beginning from and after December 31,  2020 through December 31,  2021:
If taxable income is: The tax is:
$0 $27, 272 2.59% of taxable income
$27, 273 $54, 544 $686,  plus 3.34% of the amount
over $27, 272
$54, 545 $163, 632 $1, 571,  plus 4.17% of the
amount over $54, 544
$163, 633 and over $5, 991,  plus 4.50% of the amount
over $163, 632
2. Subject to subsection C of this section,  for taxable years beginning from and after December 31,  2021 through December 31 of the year in which notice is provided to the department pursuant to section 43-244,  subsection A or subsection B,  paragraph 1:
If taxable income is: The tax is:
$0 $27, 272 2.55% of taxable income
$27, 273 and over $695,  plus 2.98% of the amount
over $27, 272
3. Subject to subsection C of this section,  for taxable years beginning from and after December 31 of the year in which notice is provided to the department pursuant to section 43-244,  subsection A or subsection B,  paragraph 1 through December 31 of the year in which notice is provided to the department pursuant to section 43-244,  subsection B,  paragraph 2:
If taxable income is: The tax is:
$0 $27, 272 2.53% of taxable income
$27, 273 and over $690,  plus 2.75% of the amount
over $27, 272
4. For taxable years beginning from and after December 31 of the year in which notice is provided to the department pursuant to section 43-244,  subsection B,  paragraph 2,  the tax is 2.5% of taxable income.
C. For each taxable year beginning from and after December 31,  2021,  the department shall adjust the income dollar amount for each rate bracket prescribed by subsection B,  paragraphs 2 and 3 of this section,  as applicable,  according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor,  bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1315 - Liability of beneficiaries for trust taxes

43-1315.
Liability of beneficiaries for trust taxes
If for any reason the taxes imposed on income of a trust are not paid when due and remain unpaid when such income is distributable to the beneficiaries,  or if the income is distributable to the beneficiaries before the taxes are due and the taxes are not paid when due,  such income shall be taxable to the beneficiaries when distributable to them,  except that in the case of nonresident beneficiaries such income shall be taxable only to the extent it is derived from sources within this state.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1331 - Additions to Arizona gross income; estates and trusts

43-1331.
Additions to Arizona gross income;  estates and trusts
In computing Arizona taxable income of an estate or trust,  the estate or trust's share of the fiduciary adjustment shall be added to Arizona gross income to the extent that the amount determined pursuant to section 43-1333 increases the estate or trust's Arizona gross income.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1332 - Subtractions from Arizona gross income; estates and trusts

43-1332.
Subtractions from Arizona gross income;  estates and trusts
In computing Arizona taxable income of an estate or trust,  the following shall be subtracted from Arizona gross income:
1. The estate or trust's share of the fiduciary adjustment to the extent that the amount determined pursuant to section 43-1333 decreases the estate or trust's Arizona gross income.
2. In the case of an estate,  the amount of federal estate taxes paid in the current taxable year.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1333 - Fiduciary adjustment; allocation of shares

43-1333.
Fiduciary adjustment;  allocation of shares
A. The fiduciary adjustment for a resident estate or trust shall be the net amount of the additions and subtractions required by sections 43-1021 and 43-1022 including the addition required by section 43-1021,  paragraph 1 or the subtraction required by section 43-1022,  paragraph 3 if the estate or trust is a beneficiary of another estate or trust.
B. In the case of a nonresident estate or trust,  the fiduciary adjustment shall be the net amount of the additions and subtractions required by sections 43-1021 and 43-1022 that are derived from or related to income from sources within this state.
C. The estate or trust and its beneficiaries shall apportion the fiduciary adjustment in the same proportion as their respective shares of federal distributable net income of the estate or trust.
D. If the estate or trust has no federal distributable net income for the taxable year,  the share of each beneficiary in the fiduciary adjustment shall be in proportion to the beneficiary's share of the estate or trust income for the year,  under local law or terms of the instrument,  that is required to be distributed currently and any other amounts of the income distributed in the year. Any balance of the fiduciary adjustment shall be allocated to the estate or trust.
E. In the case of a nonresident beneficiary of an estate or trust,  including a nonresident estate or trust that is a beneficiary of another estate or trust,  the addition required by section 43-1021,  paragraph 1 or the subtraction required by section 43-1022,  paragraph 3 shall be limited to that portion of the beneficiary's share of the fiduciary adjustment that is derived from or related to income from sources within this state.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1361 - Certificate of payment of taxes

43-1361.
Certificate of payment of taxes
If the value of the assets of an estate at the death of the decedent exceeds twenty thousand dollars and if any beneficiary is a nonresident,  the final account of the fiduciary shall not be allowed by the probate court unless the fiduciary obtains from the department and files with the court a certificate to the effect that all taxes imposed by this title upon the estate or decedent which have become payable have been paid,  and that all taxes which may become due are secured by bond,  deposit or otherwise.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1362 - Request for certificate

43-1362.
Request for certificate
Within thirty days after receiving a request for a certificate,  the department shall either issue the certificate or notify the person requesting the certificate of the amount of tax that shall be paid or the amount of bond,  deposit or other security that shall be furnished as a condition of issuance of the certificate.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1363 - Effect of certificate

43-1363.
Effect of certificate
The certificate of the department shall not relieve the estate for which the fiduciary acts of liability for any taxes which may become due from the decedent or estate under this title after the issuance of the certificate. It also shall not relieve the fiduciary of the liability imposed by section 43-1364.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1364 - Liability of fiduciary for nonpayment of estate or trust taxes

43-1364.
Liability of fiduciary for nonpayment of estate or trust taxes
Every fiduciary who knowingly pays in whole or in part any claim,  other than claims for taxes,  expenses of administration,  funeral expenses,  expenses of last illness and family allowance,  against the person,  estate or trust for whom or for which the fiduciary acts or who makes any distribution of the assets of the person,  estate,  other than estates allowed by law to be set aside to a surviving spouse or minor children,  or trust,  before the fiduciary satisfies and pays taxes,  interest and penalties,  except penalties due from a decedent,  which are imposed by this title on the person,  estate or trust for whom or for which the fiduciary acts and which are known by such fiduciary to constitute a claim against such person,  estate or trust or which are known by such fiduciary to constitute a lien or charge on or against the assets of such person,  estate or trust,  is personally liable to the state for the taxes,  interest and penalties to the extent of such payments and distributions.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1365 - Request for prompt assessment

43-1365.
Request for prompt assessment
In the case of income received or accrued during the lifetime of a decedent,  or by the decedent's estate during the period of administration,  the department shall send by physical mail or e-mail notices proposing to assess the tax and shall commence any proceeding in court without assessment for the collection of the tax within eighteen months after the fiduciary of the estate or any other person who is liable for the tax or any portion of the tax files a written request after the return is filed. After filing the request,  a fiduciary may consent in writing to waive the limitation under this section.