reglab/statecodes huggingface dataset:
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 13 - SALES TAX - PUBLISHING CLASSIFICATION › Section R15-5-1302 - General

Current through Register Vol. 30, No. 28, July 12, 2024
A. The gross income
				derived from the business of publishing within the state is taxable under this
				classification. Gross income includes revenue from subscriptions, notices, and
				local advertising.
B. Subscription
				income includes all circulation revenue. In determining the taxable base,
				however, there shall be excluded from such revenue those actual amounts
				retained by or credited to carriers and other vendors as compensation for
				delivery or sale of newspapers.
1. Carriers
				are defined as those persons who deliver newspapers to individual subscribers.
				Such deliveries are confined to a specific area or route.
2. Other vendors are defined as those persons
				who deliver newspapers to retailers such as news stands, convenience markets,
				drug stores and to coin-operated vending machines located in or near commercial
				establishments such as office buildings, hotels, motels, grocery and department
				stores.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 13 - SALES TAX - PUBLISHING CLASSIFICATION › Section R15-5-1303 - Definitions

Current through Register Vol. 30, No. 28, July 12, 2024
A. A "publisher" is one who manufactures and distributes a
				  publication from a point within this state.
B. The term "publication" includes books, newspapers,
				  magazines, music, periodicals, and any other literary work.
C. Effective 9/12/75, the term "publication" shall
				  specifically exclude books. Sales of books directly to a final consumer,
				  however, are taxable under the retail classification (see Article
				  18).
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 13 - SALES TAX - PUBLISHING CLASSIFICATION › Section R15-5-1304 - Printing Costs

Current through Register Vol. 30, No. 28, July 12, 2024
The cost of printing a publication, including the subletting
				  of printing to another person, is not deductible from the gross
				  income.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 13 - SALES TAX - PUBLISHING CLASSIFICATION › Section R15-5-1305 - Out-of-state Distribution

Current through Register Vol. 30, No. 28, July 12, 2024
Income from publications, other than books, mailed or
				  distributed from a point within this state to a point outside the state is
				  subject to the tax under this classification.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 14 - TRANSPORTING CLASSIFICATION › Section R15-5-1404 - Excess Baggage Charges

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				Gross proceeds of sales or gross income from charges for excess baggage shipped
				from one point to another point in this state is included in the tax base under
				the transporting classification except as provided in subsection (B).
B. Gross proceeds of sales or gross income
				from charges for excess baggage shipped by motor vehicle from one point to
				another point in this state is not included in the tax base under the
				transporting classification if a light motor vehicle fee imposed under A.R.S.
				§
									28-5492
				or a motor carrier fee imposed under A.R.S. §
									28-5852
				is paid to the Department of Transportation on the vehicle used in the
				transporting.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 14 - TRANSPORTING CLASSIFICATION › Section R15-5-1405 - Demurrage Charges

Current through Register Vol. 30, No. 28, July 12, 2024
Gross proceeds of sales or gross income from demurrage
				  charges is included in the tax base under the transporting classification
				  unless the transporting to which it relates is excluded from the transporting
				  classification.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 14 - TRANSPORTING CLASSIFICATION › Section R15-5-1408 - Rental of Aircraft

Current through Register Vol. 30, No. 28, July 12, 2024
A. Gross
				proceeds of sales or gross income from transporting by aircraft freight or
				property from one point to another point in this state is included in the tax
				base under the transporting classification.
B. A charge for the use of an aircraft when a
				pilot is not provided is rent. Gross proceeds of sales or gross income from the
				rental or leasing of aircraft is included in the tax base under the personal
				property rental classification unless a specific deduction or exclusion
				applies.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 15 - PERSONAL PROPERTY RENTAL CLASSIFICATION › Section R15-5-1502 - General

Current through Register Vol. 30, No. 28, July 12, 2024
A. Gross income
				derived from the rental of tangible personal property is included in the tax
				base under the personal property rental classification unless a specific
				statutory exemption, exclusion, or deduction applies. Examples of tangible
				personal property include: televisions, cars, trucks, lawnmowers, floor
				polishers, tuxedos, uniforms, furniture, towels, and linens.
B. In this Article, the terms "lease,"
				"rental," and "leasing" are used synonymously.
C. Gross income from the lease of tangible
				personal property to a lessee who subleases the property is not taxable under
				the personal property rental classification if the lessee is engaged in the
				business of leasing the property under the personal property rental
				classification.
D. Gross income
				from the rental of tangible personal property includes charges for
				installation, labor, insurance, maintenance, repairs, pick-up, delivery,
				assembly, set-up, personal property taxes, and penalty fees even if these
				charges are billed as separate items, unless a specific statutory exemption,
				exclusion, or deduction applies.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 15 - PERSONAL PROPERTY RENTAL CLASSIFICATION › Section R15-5-1503 - Sourcing of Leased Tangible Personal Property

Current through Register Vol. 30, No. 28, July 12, 2024
A. In this Section:
1. "Business location" means the business
				address that appears on a lessor's privilege license, but if the lessor does
				not have a business address in Arizona, business location means the lessee's
				residential or primary business street address.
2. "Source" means to determine the location
				of leasing or renting activity for tax purposes.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 15 - PERSONAL PROPERTY RENTAL CLASSIFICATION › Section R15-5-1506 - Rental of Tangible Personal Property to Government Agencies

Current through Register Vol. 30, No. 28, July 12, 2024
A lessor's gross income from the rental of tangible personal
				  property to the United States Government, the state of Arizona, or other
				  governmental subdivisions is taxable under the personal property rental
				  classification unless a specific statutory exemption, exclusion, or deduction
				  applies.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 15 - PERSONAL PROPERTY RENTAL CLASSIFICATION › Section R15-5-1507 - Rental of Tangible Personal Property to Schools, Churches, and Other Nonprofit Organizations

Current through Register Vol. 30, No. 28, July 12, 2024
A lessor's gross income from the rental of tangible personal
				  property to a school, church, or other nonprofit organization is taxable under
				  the personal property rental classification unless a specific statutory
				  exemption, exclusion, or deduction applies.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 15 - PERSONAL PROPERTY RENTAL CLASSIFICATION › Section R15-5-1512 - Lease - Purchase Agreements

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				A lessor's gross income from the leasing of tangible personal property that
				includes an option to purchase the tangible personal property is taxable under
				the personal property rental classification until the lessee exercises the
				purchase option.
B. Gross income
				received after the lessee exercises the purchase option is taxable under the
				retail classification.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 16 - COMMERCIAL LEASE CLASSIFICATION › Section R15-5-1601 - Definitions

Current through Register Vol. 30, No. 28, July 12, 2024
The following definitions apply for purposes of the rules in
				  this Article, unless the context requires otherwise or unless otherwise
				  defined.
1. "Agricultural property" means land or structures which are
				  used for the purposes of growing crops or raising animals including agronomy,
				  horticulture, viticulture, or animal husbandry.
2. "Economic unit of agricultural property" means
				  agricultural property which is rented to the same lessee under one lease or
				  rental agreement but may include more than one parcel or location which is
				  functionally integrated.
3. "Real property used for commercial purposes" means land or
				  structures, including parking lots but not including agricultural property or
				  land or structures used for residential purposes.
4. "Rental" means renting or leasing
5. "Unit" means a single real property location rented or
				  leased to a single tenant under one lease or rental
				  agreement.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 16 - COMMERCIAL LEASE CLASSIFICATION › Section R15-5-1602 - Casual Leasing Activity

Current through Register Vol. 30, No. 28, July 12, 2024
A. For
				purposes of taxation under the commercial lease classification, there shall be
				no general exclusion for a casual rental of real property unless delineated
				under A.R.S. § 42-5059 except as provided in subsection (B) of this
				rule.
B. For periods ending on or
				before July 31, 1988, the rental of one unit or real property shall have been
				deemed to be a casual activity and not subject to transaction privilege tax if:
1. A lessor had income from another source
				which was unrelated to the income from the rental of real property and such
				income was of a significant amount so as to indicate that the rental activity
				was not the sole or main support of the lessor and
2. The scope and degree of the rental
				activity clearly indicated that the rental activity was an investment activity
				rather than income from a business.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 16 - COMMERCIAL LEASE CLASSIFICATION › Section R15-5-1604 - Gross Income

Current through Register Vol. 30, No. 28, July 12, 2024
A. Gross income
				under the commercial lease classification shall include all amounts paid to or
				on behalf of the lessor including but not limited to the following items:
1. Rent;
2. Property tax paid by the lessee either as
				reimbursement to the lessor or paid directly to the county assessor on the
				lessor's behalf;
3. Insurance paid
				by the lessee either as reimbursement to the lessor or directly on the lessor's
				behalf;
4. Common area maintenance
				charges paid by the lessee;
5.
				Payments by the lessee for the promotion of the facility or of the
				lessee;
6. Flat fees paid by the
				lessee for telephone and reception services, clerical services, library
				services, reproduction services or facsimile services when such services are
				contracted for as part of the lease or are obligatory under the
				lease:
7. Utility
				connect/disconnect charges;
8.
				Improvements to the leased property made on behalf of the lessor; or
9. Reimbursement for utility service in
				excess of the actual amount charged by the utility company.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 16 - COMMERCIAL LEASE CLASSIFICATION › Section R15-5-1605 - Rental to Government Agencies

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				Gross receipts from the rental of real property to the United States
				Government, state of Arizona, or any other government agency shall be taxable
				under the commercial lease classification unless otherwise exempt.
B. For periods beginning May 24, 1990, and
				ending on March 31, 1993, the gross receipts from the rental of a single unit
				of real property to the United States Government shall not be subject to tax if
				the lessor did not have any other commercial lease income and either of the
				following conditions existed;
1. The real
				property was listed on the National Register of Historic Places; or
2. The real property was leased to the United
				States Postal Service for use as a postal facility.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 16 - COMMERCIAL LEASE CLASSIFICATION › Section R15-5-1606 - Nonprofit Organizations

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				Nonprofit organizations shall be subject to tax under the commercial lease
				classification for gross receipts from the rental of real property unless
				otherwise exempt.
B. Leases of real
				property to nonprofit organizations shall be subject to tax under the
				commercial lease classification unless otherwise exempt.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 16 - COMMERCIAL LEASE CLASSIFICATION › Section R15-5-1608 - Commercial Property - Storage Facilities

Current through Register Vol. 30, No. 28, July 12, 2024
Income from the rental of storage facilities is taxable,
				  provided the lessee retains the right of direct access to the stored goods.
				  Conversely, the storage of property by a warehouse, when the warehouse
				  proprietor maintains full control over the specific location of the stored
				  goods within the building, is not taxable. Such storage is deemed to be a
				  service rather than rental of real property.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 16 - COMMERCIAL LEASE CLASSIFICATION › Section R15-5-1609 - Commercial Property - Licensee Agreements

Current through Register Vol. 30, No. 28, July 12, 2024
When a department store enters into an agreement with a
				  licensee to provide space within the store which does not give the licensee
				  exclusive right to any specific area within the store, the income from such an
				  agreement is not subject to tax. The transaction is deemed to be a licensee
				  agreement rather than the subleasing of real property.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 17 - RESTAURANT CLASSIFICATION › Section R15-5-1704 - Providing Food or Drink to Government Agencies

Current through Register Vol. 30, No. 28, July 12, 2024
A restaurant's gross proceeds of sales or gross income from
				  sales of food or drink to the United States Government, the state or its
				  political subdivisions, or any other government agency, or its employees is
				  included in the tax base under the restaurant classification unless exempt as a
				  sale to a qualifying hospital under A.R.S. §
									42-5074(B)(7)
				   or as a sale for consumption within the
				  premises of a prison, jail or other institution under the jurisdiction of the
				  state department of corrections, the department of public safety, the
				  department of juvenile corrections or a county sheriff under A.R.S. §
				  42-5074(B)(9).
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 17 - RESTAURANT CLASSIFICATION › Section R15-5-1705 - Amusement Devices

Current through Register Vol. 30, No. 28, July 12, 2024
A restaurant's gross proceeds of sales or gross income from
				  the operation of amusement devices is included in the tax base under the
				  amusement classification (see Article 4).
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 17 - RESTAURANT CLASSIFICATION › Section R15-5-1706 - Cover Charges

Current through Register Vol. 30, No. 28, July 12, 2024
A restaurant's gross proceeds of sales or gross income from a
				  cover charge or other minimum charge is included in the tax base under the
				  restaurant classification.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 17 - RESTAURANT CLASSIFICATION › Section R15-5-1708 - Gratuities (Tips)

Current through Register Vol. 30, No. 28, July 12, 2024
A. A
				restaurant's gross receipts from gratuities that are separately stated on the
				check or bill are not included in the restaurant's tax base if:
1. The exact amount charged on a check or
				bill for gratuities and any amounts attributable to credit card fees for
				gratuities, are segregated on the seller's records for the account of the
				employees actually providing the services; and
2. The amounts so segregated less any amounts
				attributable to credit card fees for gratuities, are distributed directly to
				the employees providing the services for which the charges were made;
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 17 - RESTAURANT CLASSIFICATION › Section R15-5-1709 - Coupon Redemption

Current through Register Vol. 30, No. 28, July 12, 2024
A restaurant that accepts coupons is subject to transaction
				  privilege tax on the full sales price of the food or beverage before the coupon
				  value is deducted if the restaurant receives advertising, services, or products
				  in exchange for providing the discounts.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 18 › Section R15-5-1812

Current through Register Vol. 30, No. 28, July 12, 2024
The information
				  about casual sales that formerly was contained in
				  R15-5-1812,
				  and which is referenced in subsection
				  R15-5-151(C)(1),
				  now appears in
				  R15-5-2001.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 18.1 - SALES OF FOOD › Section R15-5-1862 - Restaurant Food Sales

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				Restaurants are generally not qualified retailers, and therefore cannot sell
				food tax free, but are taxable upon all of their gross income or gross proceeds
				of sale.
B. If a qualified retailer
				also operates a restaurant, the gross income or gross receipts of a sale from
				the two (2) activities must be kept separate. The gross receipts or gross
				income from the operation of the restaurant shall always be taxable, as will
				the income from all sales of taxable food and nonfood items. Except for items
				which may be exempt under some other provision, only tax-exempt foods sold by a
				qualified retailer not in connection with its restaurant operation shall be
				exempt.
C. To the extent that a
				delicatessen may sell taxable food, such as hot or cold sandwiches, such
				delicatessen will be required to report under this classification. Since a
				delicatessen business may constitute a qualified retailer, such business may
				still be eligible to sell tax exempt food, if such sales are separately
				accounted for.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 20 - GENERAL ADMINISTRATION › Section R15-5-2002 - Liability for Transaction Privilege Tax

Current through Register Vol. 30, No. 28, July 12, 2024
A. The transaction privilege tax is imposed
				directly on the person engaged in a taxable business in or within Arizona,
				including a retailer located outside the state who is engaging or continuing in
				business in this state as a remote seller or marketplace facilitator and who
				meets the threshold requirements in A.R.S. § 42-5044. The vendor shall be
				liable for the tax, regardless of whether or not the vendor passes on the
				economic burden of the tax to the customer.
B. A retailer establishes its physical
				presence within Arizona by activities performed in this state on its behalf
				that are significantly associated with the retailer's ability to establish and
				maintain a market in this state for its sales. Activities and factors that, by
				themselves or in conjunction with others, establish a retailer's physical
				presence within Arizona include the following:
1. The retailer maintains an office or other
				place of business in Arizona, regardless of whether such location performs a
				sales-related or other business function.
2. The retailer owns or leases real or
				personal property in Arizona.
3.
				The retailer maintains an inventory of products in Arizona at its own direction
				and control.
4. The retailer's
				merchandise or goods are delivered into Arizona on vehicles owned or leased by
				the retailer and the retailer makes such deliveries into Arizona on an ongoing
				basis.
5. Other local activities
				performed by the retailer's employees, agents, representatives, contractors, or
				affiliated persons in Arizona that enable the retailer to maintain and improve
				its name recognition, market share or sales volume, goodwill, and individual
				customer relations may establish physical presence if the activities are not of
				a transitory nature, as described in subsections (D) and (E). Such activities
				may include: soliciting sales through an ongoing local marketing contract;
				delivering, installing or repairing property sold to customers through an
				ongoing contract with either the customer or a local partner; or conducting
				training or similar support services for customers or for employees or
				representatives of the retailer on an ongoing basis.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 20 - GENERAL ADMINISTRATION › Section R15-5-2003 - Applicability of Provisions to Marketplace Facilitators and Remote Sellers

Current through Register Vol. 30, No. 28, July 12, 2024
Articles 1, 20, and 22 of this Chapter apply to any
				  marketplace facilitator or remote seller who meets the threshold requirements
				  in A.R.S. § 42-5044.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 20 - GENERAL ADMINISTRATION › Section R15-5-2007 - Credit for Accounting and Reporting Expenses

Current through Register Vol. 30, No. 28, July 12, 2024
A. For purposes of this rule, the following
				definitions apply:
1. "Reporting period"
				means a calendar month unless another period is authorized pursuant to A.R.S.
				§ 42-1322.
2. "Statutory
				delinquency date" means the date by which a payment of tax is considered
				delinquent pursuant to A.R.S. § 42-1322.
3. "Tax return" means the Transaction
				Privilege, Use, and Severance Tax Return (TPT-1).
4. "Taxable business" means a business which
				is subject to either transaction privilege or severance tax.
5. "Taxpayer" means taxpayer as defined in
				A.R.S. § 42-1322.04(C), including an entity which is exempt from state
				income tax. The following are considered a single taxpayer:
a. Members of an Arizona affiliated group
				filing a consolidated corporate income tax return under A.R.S. §
											43-947;
b. Corporations in a unitary business filing
				a combined corporate income tax return under A.A.C. R15-2-1131(E);
c. Married taxpayers operating separate sole
				proprietorships and filing a joint income tax return under A.A.C.
				R15-2-1131(E); or
d. Partnerships,
				S Corporations, trusts, or estates conducting multiple businesses, filing a
				single income tax return.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 20 - GENERAL ADMINISTRATION › Section R15-5-2009 - Transactions Between Affiliated Persons Who Are Marketplace Facilitators, Marketplace Sellers, or Remote Sellers

Current through Register Vol. 30, No. 28, July 12, 2024
A. In this Section, "affiliated person" has
				the same meaning as prescribed in A.R.S. §
									42-5043.
B. For the purposes of determining whether a
				remote seller or marketplace facilitator meets the threshold requirements in
				A.R.S. § 42-5044, the sales of marketplace facilitators and remote sellers
				who are affiliated persons shall be aggregated. If the threshold is met after
				aggregation of such sales, then all affiliated marketplace facilitators and
				remote sellers shall register with the Department for the filing and remission
				of retail transaction privilege tax. Marketplace facilitators and remote
				sellers who are affiliated persons are required to register with the Department
				and obtain a transaction privilege tax license under this Section for each
				affiliated person even if some or none of the affiliated persons would meet the
				threshold on an individual basis.
C. A marketplace facilitator or remote seller
				with affiliated persons who meets the threshold requirements in A.R.S. §
				42-5044 are not required to file consolidated returns.
D. For the purposes of determining whether a
				remote seller meets the threshold requirements in A.R.S. § 42-5044, only
				the remote seller's sales that are not facilitated on a marketplace shall be
				counted towards its threshold.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 20 - GENERAL ADMINISTRATION › Section R15-5-2010 - Transactions between Affiliated Persons

Current through Register Vol. 30, No. 28, July 12, 2024
A. For purposes of this rule, the following
				definitions apply:
1. "Actual ownership"
				means direct ownership and control but does not include ownership by or through
				affiliated persons.
2. "Affiliated
				persons" means members of the individual's family or persons who have ownership
				or control of a business entity.
3.
				"Constructive purchase price" means the fair market value or, if the fair
				market value cannot be determined, the value established by expert appraisal
				that takes into consideration all factors relevant to the
				transaction.
4. "Control of a
				business entity" means direct or indirect ownership or control of more than 50%
				of the business entity. The following guidelines, as to indirect ownership,
				shall apply for purposes of determining control of a business entity.
a. A corporation, partnership, estate, or
				trust shall be considered as being owned proportionately by or for its
				shareholders, partners, or beneficiaries.
b. An individual shall be considered as
				owning directly or indirectly that portion which is owned by or for members of
				the individual's family.
c. The
				ownership of stock by a corporation, partnership, estate, or trust shall be
				considered actual ownership to its shareholders, partners, or beneficiaries for
				purposes of making another individual a constructive owner.
d. Ownership based on a family relationship
				shall not be treated as actual ownership by the related party for the purpose
				of making another individual a constructive owner.
5. "Fair market value" means the gross
				receipts that the transaction would have brought in the open market at a time
				and location similar to that of the affiliated party transaction and between a
				willing purchaser and a willing seller, who are not affiliated and have
				reasonable knowledge of the relevant facts.
6. "Members of the individual's family" means
				the relationship of spouse, brothers, and sisters, whether by whole or half
				blood and including adopted persons, ancestors, and lineal
				descendants.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 20 - GENERAL ADMINISTRATION › Section R15-5-2011 - Bad Debts

Current through Register Vol. 30, No. 28, July 12, 2024
A. The
				deduction of a bad debt shall be allowed from gross receipts if the following
				conditions apply:
1. The gross receipts from
				the transaction on which the bad debt deduction is being taken have been
				reported as taxable;
2. The debt
				arose from a debtor-creditor relationship based upon a valid and enforceable
				obligation to pay a fixed or determinable sum of money; and
3. All or part of the debt is
				worthless.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 21 - UTILITIES CLASSIFICATION › Section R15-5-2104 - Interstate and Foreign Sales

Current through Register Vol. 30, No. 28, July 12, 2024
A person engaged in business under the utilities
				  classification may deduct from the tax base gross receipts from sales of
				  electricity, gas, or water, delivered through transmission lines or pipelines
				  to a point in another state or country, from a point in this state and used
				  outside this state.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 21 - UTILITIES CLASSIFICATION › Section R15-5-2105 - Locally Delivered Utilities

Current through Register Vol. 30, No. 28, July 12, 2024
A person engaged in business under the utilities
				  classification is subject to tax on the gross receipts from sales of
				  electricity, gas, or water, produced outside this state that is delivered
				  through transmission lines or pipelines to a point in this state, for use in
				  this state unless an exemption applies.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 21 - UTILITIES CLASSIFICATION › Section R15-5-2106 - Compressed and Bottled Liquids

Current through Register Vol. 30, No. 28, July 12, 2024
The gross receipts from sales of bottled gases and bottled
				  water are subject to tax under the retail classification unless otherwise
				  exempt.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 21 - UTILITIES CLASSIFICATION › Section R15-5-2107 - Sales to Irrigation Districts

Current through Register Vol. 30, No. 28, July 12, 2024
A person engaged in business under the utilities
				  classification is subject to tax on the gross receipts from producing and
				  furnishing or furnishing electricity or gas to an irrigation district for the
				  purpose of producing water for irrigation of farm lands or of lands subdivided
				  for residential purposes which are entitled to irrigation water unless an
				  exemption applies.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 21 - UTILITIES CLASSIFICATION › Section R15-5-2110 - Security Deposits

Current through Register Vol. 30, No. 28, July 12, 2024
Gross receipts from customer deposits that are held as
				  security for payment of utility billings are not subject to tax until
				  recognized as income. A deposit that is not applied to a customer's bill or
				  refunded to a customer when utility services are discontinued shall be presumed
				  to be abandoned property if the customer does not claim it within the period
				  established under A.R.S. Title 44, Chapter 3. Customer deposits that are
				  presumed to be abandoned property under A.R.S. Title 44, Chapter 3, shall be
				  reported and delivered to the Department as unclaimed property. Amounts
				  delivered to the Department as unclaimed property are not included in the tax
				  base. For example:
1. A utility
				company requires a new customer to deposit $150 before it provides utility
				service. The customer moves and notifies the utility company to discontinue
				service. The customer's final bill is $130. The utility applies the deposit to
				the final bill and refunds $20 to the customer. The amount applied to the
				utility bill is recognized as income and subject to tax. The amount refunded to
				the customer is not recognized by the utility as income and is not subject to
				tax.
2. A utility company requires
				a new customer to deposit $150 before it provides utility service. The customer
				notifies the utility company to discontinue service. The customer's final bill
				is $130. The utility applies the deposit to the final bill. The customer does
				not provide a forwarding address to the utility. Therefore, the utility company
				is not able to refund the remaining $20 to the customer. The amount applied to
				the utility bill is recognized as income and subject to tax. The remaining $20
				is presumed to be abandoned property if not claimed under A.R.S. Title 44,
				Chapter 3. The amount presumed to be abandoned property shall be reported and
				delivered to the Department as unclaimed property under A.R.S. Title 44,
				Chapter 3. The amount delivered to the Department as unclaimed property is not
				recognized as income by the utility and is not subject to tax.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 22 - TRANSACTION PRIVILEGE TAX - ADMINISTRATION › Section R15-5-2201 - Display and Issuance of License

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				A person maintaining a public place of business in Arizona shall display the
				transaction privilege tax license in a location conspicuous to the public. For
				the purposes of this subsection, a remote seller or marketplace facilitator who
				lacks an in-state physical presence as provided in
				R15-5-2002
				is not considered to maintain a public place of business in Arizona.
B. If a person maintains more than one place
				of business in Arizona, a transaction privilege tax license shall be displayed
				at each location.
C. For lessors
				engaged in the business of commercial leasing, a transaction privilege tax
				license shall be displayed in each location from which the lessor engages in
				business transactions.
D. The
				Department may issue a transaction privilege tax license to a licensee in
				either a hard copy format or digitally, including through AZTaxes.gov.
				Licensees shall maintain copies or equivalent documentation of their
				transaction privilege tax licenses for the record retention period prescribed
				in A.R.S. Title 42, Chapter 1.
E. A
				transaction privilege tax license issued by the Department is for administering
				and collecting transaction privilege tax and is not issued for the purpose of
				authorizing a business to operate in this state, pursuant to A.R.S. §
									41-1080
				and except as otherwise required by law.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 22 - TRANSACTION PRIVILEGE TAX - ADMINISTRATION › Section R15-5-2202 - Change in Ownership

Current through Register Vol. 30, No. 28, July 12, 2024
A. A
				transaction privilege tax or use tax license is issued to a specific person.
				The license shall not be transferred to the new owner when selling a business.
				The new owner shall apply to the state for a new license before engaging in
				business transactions.
B.
				Court-appointed trustees, receivers, and others in cases of liquidation or
				operational bankruptcies shall obtain a transaction privilege tax or use tax
				license.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 22 - TRANSACTION PRIVILEGE TAX - ADMINISTRATION › Section R15-5-2203 - Change of Name or Trade Name

Current through Register Vol. 30, No. 28, July 12, 2024
If a change is made in the name or trade name under which the
				  business is operating and the ownership remains the same, the taxpayer shall
				  apply for a new license.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 22 - TRANSACTION PRIVILEGE TAX - ADMINISTRATION › Section R15-5-2205 - Surrender of License upon Sale or Termination of Business

Current through Register Vol. 30, No. 28, July 12, 2024
A. If a business is
				sold or terminated, the taxpayer shall notify the Department of the date of
				sale or termination by submitting a form prescribed by the Department or
				through AZTaxes.gov and shall surrender the transaction privilege tax or use
				tax license to the Department.
B.
				For the purposes of A.R.S. §
									42-5005
				and this Section, the Department shall consider a license surrendered if the
				licensee submits a request to cancel its license by submitting a form
				prescribed by the Department or through AZTaxes.gov.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 22 - TRANSACTION PRIVILEGE TAX - ADMINISTRATION › Section R15-5-2206 - Cancellation of License

Current through Register Vol. 30, No. 28, July 12, 2024
A. In this
				Section, "affiliated person" has the same meaning as prescribed in A.R.S.
				§
									42-5043.
B. The
				Department may cancel a license if:
1. During
				any consecutive 12-month period, the licensee reports no taxable transaction;
				and
2. The licensee is not a
				subcontractor or wholesaler.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 22 - TRANSACTION PRIVILEGE TAX - ADMINISTRATION › Section R15-5-2207 - Taxpayer Bonds

Current through Register Vol. 30, No. 28, July 12, 2024
A. The amount
				of the bond required under A.R.S. §
									42-1102
				shall be the greater of five hundred dollars, or:
1. For licensees reporting monthly, four
				times the average monthly liability;
2. For licensees reporting quarterly, six
				times the average monthly tax liability; or
3. For licensees reporting annually, fourteen
				times the average monthly tax liability.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 22 - TRANSACTION PRIVILEGE TAX - ADMINISTRATION › Section R15-5-2210 - Collection of Tax by the Vendor

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				The vendor may pass on the economic burden of the transaction privilege tax,
				either as an unspecified portion of the overall selling price or as a separate
				and distinct item of charge.
1. If a vendor
				elects to pass on the economic burden of the tax as a separate and distinct
				item of charge, the vendor's tax base shall not include any collected state,
				county, city, or town taxes.
2. If
				the vendor does not pass on the tax as a separate and distinct item of charge,
				the vendor may factor out the tax. See
				R15-5-2210.01.
3. The amount of tax on a transaction shall
				be the same whether the tax is stated as a separate and distinct item of charge
				or the tax is calculated using the factoring method.
4. Calculation of the amount of the tax using
				the separate and distinct item of charge method shall be as follows:
Price of tangible personal property $100
Multiply the price by the applicable tax rate
$100 times 5% equals the tax as calculated $5
Total cost to the consumer $105
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 22 - TRANSACTION PRIVILEGE TAX - ADMINISTRATION › Section R15-5-2210.01 - Factoring

Current through Register Vol. 30, No. 28, July 12, 2024
"Factoring" means a method by which the taxpayer may
				  determine the amount of the tax when the tax is collected as an unspecified
				  part of the selling price.
1. The
				taxpayer may use any factoring method resulting in a tax amount equal to the
				tax as calculated using the separate and distinct item of charge
				method.
2. The following factoring
				method is approved and recommended by the Department.
To calculate the tax under the factoring method, the total
				  cost to the consumer is divided by one plus the cumulative amount of the state
				  and applicable county, city, and town tax rates, stated as a decimal. The
				  result of this calculation is then multiplied by the cumulative tax rate to
				  arrive at the amount of the tax on the sale. The gross receipts subject to tax,
				  plus the cumulative tax on that amount, shall equal the total cost to the
				  consumer.
To factor:
Total cost to the consumer $105
Divide the total cost to the
consumer by 1 plus the tax
rate (1.00 plus .05)
$105 divided by 1.05 equals the
price of tangible personal property $100
Tax as calculated ($100 times 5%) $5
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 22 - TRANSACTION PRIVILEGE TAX - ADMINISTRATION › Section R15-5-2211 - Election of Basis to Report and Pay Taxes

Current through Register Vol. 30, No. 28, July 12, 2024
A. For purposes of this Section, the
				following definitions apply:
1. "Accrual
				method" means that a sale is reported in the reporting period in which the sale
				occurs regardless of when payment is received.
2. "Cash receipts method" means that a sale
				is reported in the reporting period in which payment is received.
3. "Method of reporting" means a method to
				report and pay transaction privilege tax.
4. "Payment" means all consideration received
				including cash, credit, property, and services.
5. "Reporting period" means a calendar month
				or as prescribed by A.R.S. §
										42-5014.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 22 - TRANSACTION PRIVILEGE TAX - ADMINISTRATION › Section R15-5-2212 - Reporting by Marketplace Facilitators and Remote Sellers

Current through Register Vol. 30, No. 28, July 12, 2024
Marketplace facilitators and remote sellers registered with
				  the Department shall report and remit the applicable taxes payable pursuant to
				  A.R.S. § 42-5044 in aggregate total amounts for each applicable
				  jurisdiction designated by AZTaxes.gov. A marketplace facilitator shall not be
				  required to list or otherwise identify any individual marketplace seller on any
				  return or attachment to a return.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 22 - TRANSACTION PRIVILEGE TAX - ADMINISTRATION › Section R15-5-2214 - Establishing the Right to a Deduction by Use of a Certificate or Other Documentation

Current through Register Vol. 30, No. 28, July 12, 2024
A. The
				vendor is responsible for the payment of tax and therefore shall provide
				sufficient documentation in support of all deductions.
B. The vendor may establish a deduction or
				exclusion from the tax base pursuant to A.R.S. § 42-1316 or 42-1328.
1. If the purchaser does not have a valid
				license number, the purchaser shall indicate the reason on any
				certificate.
2. Marking an invoice
				may be done either by recording the purchaser's transaction privilege tax
				license number on the invoice or by cross referencing the specific transaction
				to the specific exemption certificate of the specific purchaser.
3. The Department has prescribed a
				certificate for establishing entitlement to statutory deductions. Reproductions
				of the blank prescribed original certificate shall be acceptable for
				use.
4. The appropriate certificate
				shall be accurately and fully completed by the purchaser.
5. If the vendor has reason to believe that
				the information contained in the certificate is not accurate, complete, or
				applicable to the transaction, the vendor may refuse to accept the
				certificate.
6. If at any time the
				vendor has reason to believe that the certificate is not applicable to a
				transaction, the vendor may refuse to honor the certificate for that
				transaction.
7. The Department may
				challenge the certificate as accepted by the vendor if the Department has
				reason to believe that the information in the certificate is incomplete,
				inaccurate, or if the exemption claimed is not based on statutory provisions.
				The burden of proof lies with the Department when a vendor accepts a completed
				departmental certificate and marks the applicable invoice pursuant to
				statute.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section › Article 22 - TRANSACTION PRIVILEGE TAX - ADMINISTRATION › Section R15-5-2215 - Return and Payment of Estimated Tax

Current through Register Vol. 30, No. 28, July 12, 2024
A. For purposes of this rule, the following
				definitions apply:
1. "Annual estimated tax
				payment" means ½ of the total tax liability for the entire month of May
				or the total tax liability for the first 15 days of the month of
				June.
2. "Annual tax liability"
				means a total tax liability of in the preceding calendar or a reasonable
				anticipation of a total tax liability in the current year as follows:
$1,000,000 in 2019
$1,600,000 in 2020
$2,300,000 in 2021
$3,100,000 in 2022
$4,100,000 in 2023 and thereafter.
3. "Taxpayer" has the meaning set forth in
				A.R.S. §
										42-5014(S).
				The following are considered a single taxpayer:
a. Members of an Arizona-affiliated group
				filing a consolidated corporate income tax return under A.R.S. §
											43-947;
b. Corporations in a unitary business filing
				a combined corporate income tax return under R15-2D-401;
c. Married taxpayers operating separate sole
				proprietorships and filing a joint income tax return; or
d. Partnerships, Limited Liability Companies,
				S Corporations, trusts, or estates conducting multiple businesses, filing a
				single income tax return.
4. "Total tax liability" means the combined
				total of the transaction privilege tax, telecommunications services excise tax,
				and county excise tax liabilities.