reglab/statecodes huggingface dataset:
Arizona Administrative Code › Title 14 - PUBLIC SERVICE CORPORATIONS; CORPORATIONS AND ASSOCIATIONS; SECURITIES REGULATION › Chapter 6 - Corporation Commission - Investment Management › Article 2 - DUTIES OF INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES › Section R14-6-208 - Advertisements by Investment Advisers or Investment Adviser Representatives

Current through Register Vol. 30, No. 28, July 12, 2024
A. Except as
				otherwise provided in subsection (D), it shall constitute a fraudulent practice
				within the meaning of A.R.S. §
									44-3241(A)(4)
				 for any investment adviser or investment
				adviser representative, directly or indirectly, to use any advertisement:
1. Which refers, directly or indirectly, to
				any testimonial of any kind concerning the investment adviser or investment
				adviser representative or concerning any advice, analysis, report, or other
				service rendered by such investment adviser or investment adviser
				representative.
2. Which refers,
				directly or indirectly, to past specific recommendations of the investment
				adviser or investment adviser representative that were or would have been
				profitable to any person; except that an investment adviser or investment
				adviser representative may furnish or offer to furnish a list of all
				recommendations made by the investment adviser or investment adviser
				representative within the immediately preceding period of not less than one
				year if the investment adviser or investment adviser representative also
				furnishes:
a. The name of each security
				recommended, the date and nature of each recommendation (for example, whether
				to buy, sell, or hold), the market price at that time, the price at which the
				recommendation was to be acted upon, and the most recently available market
				price of each such security; and
b.
				The following legend on the 1st page in prominent print or type: "It should not
				be assumed that recommendations made in the future will be profitable or will
				equal the performance of the securities in this list."
3. Which represents, directly or indirectly,
				that any graph, chart, formula, or other device being offered can in and of
				itself be used to determine which securities to buy or sell, or when to buy or
				sell them; or which represents, directly or indirectly, that any graph, chart,
				formula, or other device being offered will assist any person in making that
				person's own decisions as to which securities to buy or sell, or when to buy or
				sell them, without prominently disclosing in such advertisement the limitations
				thereof and the difficulties with respect to its use.
4. Which represents, directly or indirectly,
				that any report, analysis, or other service will be furnished for free or
				without charge, unless such report, analysis, or other service actually is or
				will be furnished entirely free and without any direct or indirect condition or
				obligation.
5. Which states that
				the Commission has approved any advertisement.
Arizona Administrative Code › Title 14 - PUBLIC SERVICE CORPORATIONS; CORPORATIONS AND ASSOCIATIONS; SECURITIES REGULATION › Chapter 6 - Corporation Commission - Investment Management › Article 2 - DUTIES OF INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES › Section R14-6-209 - Financial and Disciplinary Information That Investment Advisers Must Disclose to Clients

Current through Register Vol. 30, No. 28, July 12, 2024
A. Except
				as otherwise provided in subsection (F), it shall constitute a fraudulent
				practice within the meaning of A.R.S. §
									44-3241(A)(4)
				 for any investment adviser to fail to
				disclose to any client or prospective client all material facts with respect
				to:
1. A financial condition of the
				investment adviser that is reasonably likely to impair the ability of the
				investment adviser to meet contractual commitments to clients, if the
				investment adviser has discretionary authority (express or implied) or custody
				over the client's funds or securities, or requires prepayment of advisory fees
				of more than $500 from such client, 6 months or more in advance.
2. A legal or disciplinary event that is
				material to an evaluation of the investment adviser's or an investment adviser
				representative's integrity or ability to meet contractual commitments to
				clients.
3. A failure to comply
				with any arbitration award issued in connection with doing business as an
				investment adviser or investment adviser representative or as a dealer or
				salesman as defined in A.R.S. Title 44, Chapter 12.
Arizona Administrative Code › Title 14 - PUBLIC SERVICE CORPORATIONS; CORPORATIONS AND ASSOCIATIONS; SECURITIES REGULATION › Chapter 6 - Corporation Commission - Investment Management › Article 2 - DUTIES OF INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES › Section R14-6-210 - Licensure of Investment Adviser Representatives

Current through Register Vol. 30, No. 28, July 12, 2024
A. The definition of investment adviser
				representative in A.R.S. §
									44-3101
				includes an individual employed by a federal covered adviser only if the
				individual has a place of business in Arizona and either:
1. Is a supervised person and meets all of
				the following conditions:
a. Has more than 5
				clients who are natural persons, other than excepted persons.
b. Has clients more than 10% of whom are
				natural persons, other than excepted persons.
c. On a regular basis, solicits, meets with,
				or otherwise communicates with clients of the investment adviser or provides
				other than impersonal advisory services.
Arizona Administrative Code › Title 14 - PUBLIC SERVICE CORPORATIONS; CORPORATIONS AND ASSOCIATIONS; SECURITIES REGULATION › Chapter 6 - Corporation Commission - Investment Management › Article 2 - DUTIES OF INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES › Section R14-6-211 - Solicitation

Current through Register Vol. 30, No. 28, July 12, 2024
A. An individual
				shall not be included in the definition of investment adviser representative
				under A.R.S. §
									44-3101(3)(d)
				 if that individual meets both of the
				following conditions:
1. The individual does
				not on a regular basis give advice regarding, or recommend the services of, an
				investment adviser or an investment adviser representative.
2. The individual does not accept or receive
				directly or indirectly any commission, fee, or other remuneration in connection
				with a referral to or recommendation of the services of an investment adviser
				or an investment adviser representative.
Arizona Administrative Code › Title 14 - PUBLIC SERVICE CORPORATIONS; CORPORATIONS AND ASSOCIATIONS; SECURITIES REGULATION › Chapter 6 - Corporation Commission - Investment Management › Article 2 - DUTIES OF INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES › Section R14-6-212 - Application, Notice Filing, and Renewal Requirements

Current through Register Vol. 30, No. 28, July 12, 2024
A. An application for licensure as an
				investment adviser under A.R.S. §
									44-3153(B)
				 shall include the following:
1. Form ADV with all information and exhibits
				required by the form.
2. An audited
				balance sheet if the investment adviser will have custody of client funds or if
				the investment adviser requires the payment of advisory fees six months or more
				in advance and in excess of $500 for each client. The audited balance sheet
				shall be based on the investment adviser's fiscal year end, shall be prepared
				in accordance with generally accepted accounting principles, and shall be
				audited by an independent certified public accountant. The notes to the balance
				sheet shall state the principles used to prepare the balance sheet, the basis
				of included securities, and any other explanation required for
				clarity.
3. A notarized affidavit
				of any officer, director, partner, member, trustee, or manager of the applicant
				stating:
a. That a review of the records of
				the investment adviser has been conducted.
b. Whether any investment adviser activity
				has been conducted with residents of Arizona prior to licensure as an
				investment adviser.
4.
				If the applicant intends to have a branch office in Arizona, the address and
				name of a contact individual located at such branch.
5. If part II of the Form ADV is not used as
				a disclosure brochure, the applicant shall submit a copy of the disclosure
				brochure the applicant gives or will give to clients.
6. The documents and fees required for each
				investment adviser representative as described in subsection (C).
7. The annual licensure fee required by
				A.R.S. §
										44-3181(A).
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter A - GENERAL AND ADMINISTRATIVE › Article 1 - DEFINITIONS AND GENERAL PROVISIONS › Section R15-2A-103 - Time for Filing Returns

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				  Generally, a taxpayer shall file an income tax return on or before the 15th day
				  of the fourth full calendar month following the close of the taxable year. This
				  requirement is subject to the following exceptions:
1. The final income tax return of a decedent
				  shall be filed on or before the 15th day of the fourth month following the
				  close of the 12-month period that began with the first day of the taxable year
				  in which the decedent died.
2. The
				  Department may prescribe a later time for filing a return for a fractional part
				  of a year upon a showing by the taxpayer of unusual circumstances.
3. A corporation liquidating all its assets
				  and ceasing operations during any taxable year may file a return with the
				  Department for that year immediately after liquidation and shall report the
				  income of the corporation for the part of the year during which the corporation
				  was engaged in business.
4. Under
				  A.R.S. §
											43-1126,
				  a corporation taxable as an S corporation under the Internal Revenue Code shall
				  file its income tax return with the Department on or before the 15th day of the
				  third month following the close of the taxable year.
5. Under A.R.S. §
											43-1241,
				  an organization, otherwise exempt under A.R.S. §
											43-1201,
				  having unrelated business income shall file its income tax return with the
				  Department on or before the 15th day of the fifth month following the close of
				  the taxable year.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter A - GENERAL AND ADMINISTRATIVE › Article 1 - DEFINITIONS AND GENERAL PROVISIONS › Section R15-2A-104 - Returns Filed by Persons outside the United States

Current through Register Vol. 30, No. 28, July 12, 2024
A. If a taxpayer is outside the United States
				  and is unable to file an Arizona individual income tax return or perform any
				  act required by A.R.S. Title 43, the taxpayer may request that the Department
				  disregard the period in which the taxpayer was unable to comply by filing a
				  written request with the Department within 30 days after returning to the
				  United States that:
1. Explains the reasons
				  why the taxpayer was unable to file the income tax return or perform the
				  required act,
2. Indicates the time
				  period in which the taxpayer was unable to file the income tax return or
				  perform the required act, and
3.
				  Includes the income tax return and any applicable tax payment.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter B - WITHHOLDING › Article 1 - WITHHOLDING BY EMPLOYER › Section R15-2B-101 - Payment Schedule; Rates; Election by Employee

Current through Register Vol. 30, No. 28, July 12, 2024
A. An employer shall determine its Arizona
				  withholding payment schedule for each calendar quarter by calculating the
				  average amount of Arizona income taxes withheld in the 4 preceding calendar
				  quarters. The employer shall calculate this average at the beginning of each
				  calendar quarter by adding the actual amount withheld in each of the 4
				  preceding calendar quarters and then dividing that sum by 4.
1. If the average amount of Arizona income
				  taxes withheld in the 4 preceding calendar quarters does not exceed $1,500, the
				  employer shall make its Arizona withholding payments on a quarterly basis.
Example:
An employer determines its Arizona withholding payment
					 schedule for the 4th calendar quarter of 1999 as follows:
3rd quarter of 1999 withholding $1,100
2nd quarter of 1999 withholding $1,600
1st quarter of 1999 withholding $1,000
4th quarter of 1998 withholding $1,200
Total withholding $4,900
Divide by 4
Average withholding $1,225
The 4 quarter average of Arizona income taxes withheld does
					 not exceed $1,500. Therefore, the employer shall make its Arizona withholding
					 payments on a quarterly basis.
2. If the average amount of Arizona income
				  taxes withheld in the 4 preceding calendar quarters exceeds $1,500, the
				  employer shall make its Arizona withholding payments at the same time as the
				  employer is required to make its federal withholding deposits.
Example:
An employer determines its Arizona withholding payment
					 schedule for the 3rd calendar quarter of 1999 as follows:
2nd quarter of 1999 withholding $1,800
1st quarter of 1999 withholding $1,400
4th quarter of 1998 withholding $1,900
3rd quarter of 1998 withholding $1,300
Total withholding $6,400
Divide by 4
Average withholding $1,600
The 4 quarter average of Arizona income taxes withheld
					 exceeds $1,500. Therefore, the employer shall make its Arizona withholding
					 payments at the same time as its federal withholding deposits.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter B - WITHHOLDING › Article 2 - WITHHOLDING AS PAYMENT OF TAX FOR EMPLOYEE › Section R15-2B-201 - Refund of Excess Withholding

Current through Register Vol. 30, No. 28, July 12, 2024
If a refund for an overpayment of income tax withheld is
					 payable to a deceased taxpayer, the surviving spouse or other claimant shall
					 attach the form prescribed by the Department to the deceased taxpayer's income
					 tax return to establish the claimant's right to the refund.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter C - INDIVIDUALS › Article 1 - PAYMENT AND COLLECTION OF TAX › Section R15-2C-101 - Payment of Estimated Income Tax by Individuals

Current through Register Vol. 30, No. 28, July 12, 2024
A. Individual taxpayers subject to Arizona
				  income tax who reasonably expect to have Arizona gross income of more than
				  $75,000.00 in the current tax year or had Arizona gross income of more than
				  $75,000.00 in the preceding tax year are subject to the provisions in this
				  rule. For tax years ending on or before 12/31/92, the requirement to make
				  estimated payments is based on Arizona gross income of more than $100,000.00.
1. The requirement to make estimated tax
				  payments is based on the Arizona gross income of each individual
				  taxpayer.
2. All taxpayers, whether
				  classified as a nonresident or a resident, shall be subject to the estimated
				  payment requirements.
3.
				  Nonresidents shall use the definition of Arizona gross income pursuant to
				  A.R.S. §
											43-1091
				  for purposes of determining if estimated tax payments are required.
4. Individual taxpayers, moving into or out
				  of Arizona during a tax year resulting in a change of residency status, shall
				  use the definition of Arizona gross income in A.R.S. §
											43-1001,
				  allocated pursuant to A.R.S. §
											43-1097,
				  for purposes of determining if estimated tax payments are required for the
				  portion of the year in which they are Arizona residents.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter C - INDIVIDUALS › Article 2 - ADDITIONS TO ARIZONA GROSS INCOME › Section R15-2C-201 - Additions to and Subtractions from Arizona Gross Income

Current through Register Vol. 30, No. 28, July 12, 2024
The starting point in calculating Arizona adjusted gross
					 income is federal adjusted gross income calculated under the Internal Revenue
					 Code. The taxpayer shall make additions to or subtractions from Arizona gross
					 income under A.R.S. §§
										43-1021
					 and
					 43-1022
					 to calculate Arizona adjusted gross income.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter C - INDIVIDUALS › Article 2 - ADDITIONS TO ARIZONA GROSS INCOME › Section R15-2C-211 - Amounts Already Deducted

Current through Register Vol. 30, No. 28, July 12, 2024
A taxpayer shall not deduct the same expense twice in
					 computing Arizona taxable income.
1.
				  If a taxpayer includes an expense item in determining the current year's
				  federal adjusted gross income or federal taxable income for the taxable year,
				  the taxpayer shall not include that expense item a second time in determining
				  Arizona taxable income for the same taxable year.
2. If a taxpayer deducted an expense item in
				  an Arizona individual income tax return and deducts the expense item again in a
				  subsequent return in computing either federal adjusted gross income or Arizona
				  taxable income, the taxpayer shall add back the expense item to determine
				  Arizona adjusted gross income.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter C - INDIVIDUALS › Article 3 - SUBTRACTIONS FROM ARIZONA GROSS INCOME › Section R15-2C-301 - Retirement Benefits, Annuities, Pensions

Current through Register Vol. 30, No. 28, July 12, 2024
An individual is allowed to subtract up to $2,500.00 per
					 taxable year from Arizona gross income for income received from sources as
					 delineated in A.R.S. §
										43-1022(2)(a)
					 and (b).
1. An individual receiving income from more
				  than 1 such source shall only subtract a total of $2,500.00 for all such income
				  received during the taxable year.
2. The amount allowed as a subtraction is
				  calculated per individual. The allowable subtraction for a married-filing-
				  joint return when both spouses receive income from 1 or more such sources is
				  determined based on the actual amount of income which is received by each
				  individual but not to exceed $2,500.00 per individual.
3. The aggregate subtraction allowed for
				  purposes of individuals filing married-filing-separate returns shall not exceed
				  the limitations as delineated in this rule.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter C - INDIVIDUALS › Article 3 - SUBTRACTIONS FROM ARIZONA GROSS INCOME › Section R15-2C-305 - Social Security and Railroad Retirement Benefits

Current through Register Vol. 30, No. 28, July 12, 2024
A. Under A.R.S. §
										43-1022,
				  a taxpayer shall subtract from Arizona gross income the amount of Social
				  Security and Tier 1 Railroad Retirement benefits taxable under Internal Revenue
				  Code § 86 that is included in federal adjusted gross income.
B. In accordance with
				  45
				  U.S.C. 231(m), a taxpayer
				  shall subtract from Arizona gross income the amount of benefits provided under
				  the Railroad Retirement Act of 1974 that is included in federal adjusted gross
				  income and not subtracted under subsection (A).
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter C - INDIVIDUALS › Article 3 - SUBTRACTIONS FROM ARIZONA GROSS INCOME › Section R15-2C-306 - Income Previously Recognized

Current through Register Vol. 30, No. 28, July 12, 2024
A taxpayer shall not include the same income item twice in
					 computing Arizona taxable income.
1.
				  If a taxpayer includes an income item in determining federal adjusted gross
				  income or federal taxable income for a taxable year, the taxpayer shall not
				  include that income a second time in determining Arizona taxable income for the
				  same taxable year.
2. If a taxpayer
				  included an income item in an Arizona income tax return and includes the same
				  income item again in the computation of either federal adjusted gross income or
				  Arizona taxable income in a subsequent return, the taxpayer shall subtract the
				  income item included for the second time in the subsequent return to determine
				  Arizona adjusted gross income.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter C - INDIVIDUALS › Article 3 - SUBTRACTIONS FROM ARIZONA GROSS INCOME › Section R15-2C-307 - Exemption for Blind Persons

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				  If both a husband and wife are blind or partially blind and they elect to file
				  a joint return, they may claim a total of 2 exemptions under A.R.S. §
										43-1023(A).
				  For purposes of this Section, "partially blind" means an individual whose
				  vision is no better than 20/200 in the better eye with correcting lenses or who
				  has a field of vision of 20 degrees or less.
B. If a taxpayer or the taxpayer's spouse
				  dies during the taxable year and the decedent was blind or partially blind on
				  the date of death, the decedent is eligible for the exemption under A.R.S.
				  §
										43-1023(A).
C. If a taxpayer or the taxpayer's spouse for
				  whom the taxpayer is claiming an exemption under A.R.S. §
										43-1023(A)(2)
				   is partially blind on the last day of the
				  taxable year, the taxpayer shall obtain a statement from a licensed optometrist
				  or a physician skilled in diseases of the eye. The taxpayer shall keep the
				  statement for the taxpayer's records. The statement shall certify that the
				  person claiming the exemption or on whose behalf the exemption is claimed:
1. Has vision no better than 20/200 in the
				  better eye with correcting lenses, or
2. Has a field of vision of 20 degrees or
				  less.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter C - INDIVIDUALS › Article 5 - CREDITS › Section R15-2C-502 - Property Tax Credit

Current through Register Vol. 30, No. 28, July 12, 2024
A. The
				  following definitions apply for purposes of this Section:
1. "Adjusted gross income" means the sum of
				  all income not specifically excluded in A.R.S. §
											43-1072
				  whether or not subject to Arizona income tax, except those items that A.R.S.
				  §
											43-1072
				  specifically includes in income.
2.
				  "Member of the household" means a claimant and any other person residing with
				  the claimant in the homestead during the taxable year, whether or not the
				  person is related to, or a dependent of, the claimant.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter C - INDIVIDUALS › Article 5 - CREDITS › Section R15-2C-503 - Renewable Energy Production Tax Credit

Current through Register Vol. 30, No. 28, July 12, 2024
A. For each year for which an owner of a
				  qualified energy generator plans to claim a renewable energy production tax
				  credit, the owner shall file one of the following applications:
1. An initial application in accordance with
				  subsection (B) for:
a. Energy produced in
				  2011 for which an owner of a qualified energy generator plans to claim a credit
				  on the 2011 tax return filed in 2012, and
b. Energy produced after 2011 for which an
				  owner of a qualified energy generator did not have a place on the prior year's
				  Credit Authorization List for the renewable energy production tax credit under
				  A.R.S. §
												43-1083.02(G).
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter C - INDIVIDUALS › Article 6 - NONRESIDENTS › Section R15-2C-601 - Income of a Non-resident

Current through Register Vol. 30, No. 28, July 12, 2024
A. Gross
				  income
1. Non-residents of the state are
				  required to include in the Arizona gross income only that portion of their
				  federal adjusted gross income which is relevant in determining the amount of
				  net income derived from sources within this state.
2. The gross income of a non-resident of the
				  state who is a member of a partnership, pool, or syndicate includes the
				  member's distributive share of the net income of the partnership, pool, or
				  syndicate in addition to any other income from sources within this state to the
				  extent that the member's distributive share is derived from sources within this
				  state.
3. A non-resident
				  beneficiary of an estate or trust must include in gross income, income from the
				  estate or trust which is deductible by the estate or trust and which is derived
				  from sources within this state.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter C - INDIVIDUALS › Article 6 - NONRESIDENTS › Section R15-2C-602 - Income from Intangible Personal Property

Current through Register Vol. 30, No. 28, July 12, 2024
A. Income of non-residents from rentals or
				  royalties for the use of or for the privilege of using patents, copyrights,
				  secret processes and formulas, goodwill, trademarks, trade brands, franchises,
				  and other like property in this state is taxable if such intangible property
				  has a business situs in this state within the meaning of subsection (C)
				  below.
B. Income of non-residents
				  from intangible personal property such as shares of stock in corporations,
				  bonds, notes, bank deposits and other indebtedness is taxable as income from
				  sources within this state only if the property has a situs for taxation in this
				  state. However, if a non-resident buys or sells stocks, bonds, and other such
				  property in this state or places orders with brokers in this state to buy or
				  sell such property regularly, systematically, and continuously as to constitute
				  doing business in this state, the profit or gain derived from such activity is
				  taxable as income from a business carried on here irrespective of the situs of
				  the property for taxation.
C.
				  Business situs of intangible personal property
1. Intangible personal property has a
				  business situs in this state if it is employed as capital in this state or
				  possession and control of the property has been localized in connection with a
				  business, trade, or profession in this state so that the substantial use of the
				  property and the value attached to it become an asset of the business, trade,
				  or profession in this state.
Example: If a non-resident pledges stocks, bonds, or other
					 intangible personal property in this state as security for the payment of
					 indebtedness, taxes, etc., incurred in connection with a business in this
					 state, the property has a business situs here. Again, if a non-resident
					 maintains a branch office here and a bank account on which the agent in charge
					 of the branch office may draw for the payment of expenses in connection with
					 the activities in this state, the bank account has a business situs
					 here.
2. If intangible
				  personal property of a non-resident has acquired a business situs here, the
				  entire income from the sale thereof is income from sources within this state
				  and is taxable to the non-resident regardless of where the sale is
				  consummated.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter C - INDIVIDUALS › Article 6 - NONRESIDENTS › Section R15-2C-605 - Nonresident Professional Athletes Who Are Not Team Members

Current through Register Vol. 30, No. 28, July 12, 2024
Individual nonresident professional athletes who are not
					 members of a professional athletic team and whose income is event-oriented (for
					 example, golfers, tennis players, boxers, and jockeys) shall allocate to
					 Arizona income earned in Arizona and expenses allowable in arriving at federal
					 adjusted gross income that are allocable to the Arizona source income.
Example: A professional golfer comes into Arizona to
					 compete in a tournament. The golfer wins $150,000 prize money based on success
					 in the tournament. The golfer must report the $150,000 to Arizona as Arizona
					 income. The golfer may subtract expenses that are allowable in arriving at
					 federal adjusted gross income and that are incurred in winning the
					 $150,000.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter D - CORPORATIONS › Article 1 - GENERAL › Section R15-2D-101 - Definitions

Current through Register Vol. 30, No. 28, July 12, 2024
In addition to the definitions provided in A.R.S.
					 §§
										43-104,
					 43-1101,
					 and
					 43-1131,
					 the following definitions apply to this Subchapter:
"Allocation" means the assignment of nonbusiness income to
					 a particular state.
"Apportionment" means the division of business income
					 between states by the use of a formula that contains apportionment
					 factors.
"Arizona affiliated group" has the same meaning as
					 prescribed in A.R.S. §
										43-947(I).
"Business activity" means transactions and activity
					 occurring in the regular course of a particular trade or business of a
					 taxpayer.
"Combined return" means a corporate income tax return filed
					 by a group of commonly owned corporations or businesses that constitute a
					 unitary business, except that a combined return does not include either a
					 foreign corporation that is not itself subject to a tax imposed by A.R.S. Title
					 43, or an insurance company that is exempt under A.R.S. §
										43-1201.
"Consolidated return" means a corporate income tax return
					 filed by an Arizona affiliated group under A.R.S. §
										43-947.
"Employee" means any officer of a corporation; or any
					 individual who, under the usual common-law rules applicable in determining the
					 employer-employee relationship, has the status of an employee.
"Incidental to" means occurring in, or associated with, the
					 normal, typical, or customary operations of the particular trade or business
					 under consideration.
"Sales" means all gross receipts derived by a taxpayer from
					 transactions and activity in the regular course of a trade or business and
					 includes all gross receipts of the taxpayer not allocated under A.R.S.
					 §§
										43-1134
					 through
					 43-1138.
"Unitary business" means an entity, group of entities, or
					 components of an entity whose basic operations are substantially integrated and
					 interdependent. The determination of whether an entity, group of entities, or
					 components of an entity constitute a unitary business is made under
					 R15-2D-401.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter D - CORPORATIONS › Article 3 - SUBTRACTIONS FROM ARIZONA GROSS INCOME › Section R15-2D-302 - Corporate Net Operating Loss

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				  The following definitions apply for purposes of this rule:
1. "Arizona adjusted income" means Arizona
				  gross income of the taxpayer adjusted by the additions and subtractions as
				  delineated in A.R.S. Title 43, Chapter 11, Article 3, except as provided in
				  subsections (B) and (E) of this rule.
2. "Arizona gross income" means federal
				  taxable income for the taxable year.
3. "Arizona net operating loss" means Arizona
				  adjusted income which is a negative amount.
4. "Taxable year" means taxable year as
				  defined in statute.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter D - CORPORATIONS › Article 3 - SUBTRACTIONS FROM ARIZONA GROSS INCOME › Section R15-2D-303 - Domestic International Sales Corporation (DISC)

Current through Register Vol. 30, No. 28, July 12, 2024
A. For purposes of this Section, "DISC" means
				  a corporation that elects to be treated as a DISC under Internal Revenue Code
				  § 992. The Arizona gross income of a DISC is the DISC's federal taxable
				  income computed as if the DISC were a corporation that had not elected to be
				  treated as a DISC. A DISC that meets the combined return filing requirements of
				  R15-2D-401 shall file as part of a combined return unless:
1. The DISC is a foreign corporation that is
				  not subject to Arizona income tax, or
2. The corporation with which the DISC would
				  otherwise be required to file a combined return is a member of an Arizona
				  affiliated group as defined in A.R.S. §
											43-947.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter D - CORPORATIONS › Article 3 - SUBTRACTIONS FROM ARIZONA GROSS INCOME › Section R15-2D-305 - Deferred Exploration Expenses

Current through Register Vol. 30, No. 28, July 12, 2024
A.
				  A taxpayer may elect to subtract a ratable portion of deferred exploration
				  expenses added to income under A.R.S. §
										43-1121.
				  To make the election, a taxpayer shall attach a statement to the return for the
				  applicable taxable year. The taxpayer shall disclose the following in the
				  statement:
1. The amount of exploration
				  expenses subject to the election; and
2. The name, location, and nature of the ore
				  or mineral deposit to which the election relates.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter D - CORPORATIONS › Article 3 - SUBTRACTIONS FROM ARIZONA GROSS INCOME › Section R15-2D-307 - Amortization of Child Care Facilities

Current through Register Vol. 30, No. 28, July 12, 2024
A. The following definitions apply for
				  purposes of amortization of child care facilities under A.R.S. §
										43-1130
				  and this Section:
1. "Child care facility"
				  means a facility as defined under A.R.S. §
											36-881.
2. "Employee" means any person employed by a
				  taxpayer that owns a child care facility.
3. "Property" means a child care facility and
				  its related equipment of a character subject to depreciation.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter D - CORPORATIONS › Article 4 - MULTISTATE DIVISION OF INCOME › Section R15-2D-401 - Unitary Business and Combined Returns

Current through Register Vol. 30, No. 28, July 12, 2024
A. An entity, group of entities, or
				  components of an entity is not a unitary business for apportionment purposes
				  unless there is actual substantial interdependence and integration of the basic
				  operations of the business carried on in more than one taxing jurisdiction. The
				  potential to operate an entity or a component as part of the unitary business
				  is not dispositive.
B. The
				  determination of whether the operations of a taxpayer constitute a unitary
				  business is based on economic substance and not form. Therefore, a unitary
				  business may consist of part of a corporation, one corporation, or many
				  corporations. If the unitary business consists of more than one corporation,
				  the corporations comprising the unitary business shall file a combined return
				  apportioning the business income of the corporations using a single
				  apportionment formula.
C. The main
				  reason for defining a business as unitary is that its components in various
				  states are so tied together at the basic operational level that it is difficult
				  to determine the state in which profits are earned. Centralized top-level
				  management, financing, accounting, insurance and benefit programs, or overhead
				  functions by a home office are not sufficient for a business to be unitary
				  without further analysis of the basic operations of the components.
D. The following are necessary threshold
				  characteristics for components of an entity, an entity, or a group of entities
				  to be considered a unitary business:
1. The
				  entities comprising the unitary business are owned or controlled, directly or
				  indirectly, by the same interests that collectively own more than 50 percent of
				  the voting stock,
2. The entities
				  or components share common management, and
3. The entities or components have reconciled
				  accounting systems.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter D - CORPORATIONS › Article 4 - MULTISTATE DIVISION OF INCOME › Section R15-2D-403 - Taxable in Another State

Current through Register Vol. 30, No. 28, July 12, 2024
A. A
				  taxpayer is subject to the allocation and apportionment provisions of A.R.S.
				  §§
										43-1131
				  through
				  43-1148
				  if it has income from business activity that is taxable both within and without
				  this state. A taxpayer's income from business activity is taxable without this
				  state if the taxpayer, by reason of the business activity, is taxable in
				  another state under either one of the two tests specified in A.R.S. §
										43-1133.
				  A taxpayer is not taxable in another state with respect to a particular trade
				  or business merely because the taxpayer conducts activities in that other state
				  pertaining to the production of nonbusiness income or business activities
				  relating to a separate trade or business.
B. A taxpayer is "subject to" one of the
				  taxes specified in A.R.S. §
										43-1133(1)
				   if it carries on business activities in a
				  state and that state imposes one of the taxes on the taxpayer. Any taxpayer
				  that asserts that it is subject to one of the taxes specified in A.R.S. §
										43-1133(1)
				   in another state shall furnish to the
				  Department upon its request evidence to support that assertion. The Department
				  may request that the evidence include proof that the taxpayer has filed the
				  requisite tax return in the other state and has paid any taxes imposed under
				  the laws of the other state. The taxpayer's failure to produce this proof may
				  be taken into account in determining whether the taxpayer is subject to one of
				  the taxes specified in A.R.S. §
										43-1133(1)
				   in the other state.
1. A taxpayer that voluntarily files and pays
				  one or more of the taxes specified in A.R.S. §
											43-1133(1)
				   when not required to do so by the laws of
				  the other state or pays a minimal fee for qualification, organization, or the
				  privilege of doing business in that state is not "subject to" one of the taxes
				  specified in A.R.S. §
											43-1133(1)
				   if the taxpayer:
a. Does not engage in business activity in
				  that state; or
b. Engages in some
				  business activity, not sufficient for nexus, and the minimum tax bears no
				  relationship to the taxpayer's business activity within that state.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter D - CORPORATIONS › Article 4 - MULTISTATE DIVISION OF INCOME › Section R15-2D-404 - Apportionment Formula

Current through Register Vol. 30, No. 28, July 12, 2024
A. All business
				  income of each trade or business of the taxpayer shall be apportioned to this
				  state by use of the apportionment formula in A.R.S. §
										43-1139.
				  The elements of the apportionment formula are the property factor, the payroll
				  factor, and the sales factor of the trade or business of the
				  taxpayer.
B. A unitary business
				  that files a combined return shall use an apportionment formula that combines
				  the property, payroll, and sales figures of all of the unitary group members
				  before calculating the factors.
C.
				  An Arizona affiliated group that files a consolidated return shall use an
				  apportionment formula that combines the property, payroll, and sales figures of
				  all of the members of the Arizona affiliated group before calculating the
				  factors.
D. This Section does not
				  apply to a taxpayer engaged in air commerce that apportions its income in
				  accordance with A.R.S. §
										43-1139(B).
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter D - CORPORATIONS › Article 4 - MULTISTATE DIVISION OF INCOME › Section R15-2D-405 - Intercompany Eliminations

Current through Register Vol. 30, No. 28, July 12, 2024
Members of a combined or consolidated return shall
					 eliminate intercompany amounts included in the group's income, expense, and
					 apportionment factors when necessary to avoid distortion of the group's Arizona
					 taxable income.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter D - CORPORATIONS › Article 5 - BUSINESS AND NONBUSINESS INCOME › Section R15-2D-501 - General

Current through Register Vol. 30, No. 28, July 12, 2024
A. For purposes of
				  administration, the income of a taxpayer is business income unless clearly
				  classifiable as nonbusiness income.
B. The classification of income by labels,
				  such as manufacturing income, compensation for services, sales income,
				  interest, dividends, rents, royalties, gains, operating income, or nonoperating
				  income, is of no aid in determining whether income is business or nonbusiness
				  income. Income of any type or class and from any source is business income if
				  it arises from transactions and activity occurring in the regular course of a
				  trade or business. Accordingly, the critical elements in determining whether
				  income is "business income" or "nonbusiness income" are the transactions and
				  activity of a particular trade or business. In general, all transactions and
				  activity of a taxpayer that are the result of or incidental to the operations
				  of a particular trade or business of the taxpayer are transactions and activity
				  arising in the regular course of, and constitute integral parts of, a trade or
				  business.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter D - CORPORATIONS › Article 5 - BUSINESS AND NONBUSINESS INCOME › Section R15-2D-503 - Gains or Losses from Sales of Assets

Current through Register Vol. 30, No. 28, July 12, 2024
Gain or loss from the sale, exchange, or other disposition
					 of tangible or intangible personal property or real property constitutes
					 business income if the property while owned by the taxpayer was used in the
					 taxpayer's trade or business. However, if the property was used for the
					 production of nonbusiness income or otherwise was removed from the property
					 factor, in accordance with Article 6, before its sale, exchange, or other
					 disposition, the gain or loss constitutes nonbusiness income.
Example 1: In conducting its multistate manufacturing
					 business, the taxpayer systematically replaces automobiles, machines, and other
					 equipment used in the business. The gains or losses resulting from those sales
					 constitute business income.
Example 2: The taxpayer constructed a plant for use in its
					 multistate manufacturing business and 20 years later sold the property at a
					 gain while it was in operation by the taxpayer. The gain is business
					 income.
Example 3: Same as example two except that the plant was
					 closed and put up for sale but was not in fact sold until a buyer was found 18
					 months later. The gain is business income.
Example 4: Same as example two except that the plant was
					 rented while being held for sale. The rental income is business income and the
					 gain on the sale of the plant is business income.
Example 5: The taxpayer operates a multistate chain of
					 grocery stores. It owned an office building that it occupied as its corporate
					 headquarters. Because of inadequate space, the taxpayer acquired a new and
					 larger building elsewhere for its corporate headquarters. The old building was
					 rented to an unrelated investment company under a five-year lease. Upon
					 expiration of the lease, the taxpayer sold the building at a gain (or loss).
					 The gain (or loss) on the sale is nonbusiness income and the rental income
					 received over the lease period is nonbusiness income.
Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter D - CORPORATIONS › Article 5 - BUSINESS AND NONBUSINESS INCOME › Section R15-2D-504 - Interest

Current through Register Vol. 30, No. 28, July 12, 2024
Interest income is business income if the intangible
					 property with respect to which the taxpayer receives interest arises out of or
					 is created in the regular course of the taxpayer's trade or business operations
					 or if the purpose for acquiring and holding the intangible property is related
					 to or incidental to the trade or business operations.
Example 1: The taxpayer operates a multistate chain of
					 department stores, selling for cash and on credit. The taxpayer receives
					 service charges, interest, or time-price differentials and the like with
					 respect to installment sales and revolving charge accounts. These amounts are
					 business income.
Example 2: The taxpayer conducts a multistate manufacturing
					 business. During the year the taxpayer receives a federal income tax refund and
					 collects a judgment against a debtor of the business. Both the tax refund and
					 the judgment bear interest. The interest income is business income.
Example 3: The taxpayer is engaged in a multistate
					 manufacturing and wholesaling business. In connection with that business, the
					 taxpayer maintains special accounts to cover items such as worker's
					 compensation claims, rain and storm damage, and machinery replacement. The
					 moneys in those accounts are invested at interest. Similarly, the taxpayer
					 temporarily invests funds intended for payment of federal, state, and local tax
					 obligations. The interest income is business income.
Example 4: The taxpayer is engaged in a multistate money
					 order and traveler's check business. In addition to the fees received in
					 connection with the sale of the money orders and traveler's checks, the
					 taxpayer earns interest income by investing the funds pending their redemption.
					 The interest income is business income.
Example 5: The taxpayer is engaged in a multistate
					 manufacturing and selling business. The taxpayer usually has working capital
					 totaling $200,000 that it regularly invests in short-term, interest-bearing
					 securities. The interest income is business income.
Example 6: In January, the taxpayer sells all of the stock
					 of a subsidiary for $20,000,000. The funds are placed in an interest-bearing
					 account pending a decision by management as to how the funds are to be used.
					 The interest income is nonbusiness income.