Chapter 5. Department of Revenue - Transaction Privilege and Use Tax Section

In this Chapter, unless the context requires otherwise or unless otherwise defined: 1. "AZTaxes.gov" has the same meaning as prescribed in R15-10-301. 1. 2. "Casual activity or sale" means an occasional transaction of an isolated nature made by persons who neither represent thems…

A. Gross receipts from a casual activity or sale are not taxable under the retail classification. B. Except as otherwise provided in R15-5-2002, a retailer, including as a marketplace facilitator or remote seller, cannot engage in a casual sale of tangible personal property of th…

Gross receipts from the sale of a business as a going concern are not subject to tax if the sale is for the business as an operating enterprise. Notes Ariz. Admin. Code § R15-5-103 Renumbered from R15-5-1817 and amended effective August 9, 1993 (Supp. 93-3). Amended by final rule…

A. Gross receipts from the sale of tangible personal property to a person engaged in a professional or personal service occupation or business are subject to tax if the tangible personal property is used or consumed in the performance of the service or is sold only as an inconseq…

Gross receipts from services rendered in addition to selling tangible personal property at retail are subject to tax unless the charge for service is shown separately on the sales invoice and records. Notes Ariz. Admin. Code § R15-5-105 Renumbered from R15-5-1815 and amended effe…

Gross receipts from finance, carrying charges, or interest charges incurred in connection with a retail sale of tangible personal property are not subject to tax if: 1. The charges are separately stated as part of the sales transaction; and 2. The charges result from the sale of …

A. Gross receipts from the sale of tangible personal property to be resold by the purchaser in the ordinary course of business are not subject to tax under the retail classification. B. Gross receipts from the sale of tangible personal property to be leased by a person in the bus…

Notes Ariz. Admin. Code § R15-5-108

Notes Ariz. Admin. Code § R15-5-109

A. Gross income derived from the leasing of tangible personal property under a lease-purchase agreement is subject to tax under the personal property rental classification. B. Payments received after the conversion from a lease to a purchase are subject to tax under the retail cl…

For purposes of this Article, the following definitions apply: 1. "Image developing" means the copying or reproducing by a printer of an image by any means from film, paper, video, or another data storage medium to photographic print paper or another storage medium that can visua…

A. Except as otherwise provided in subsection (F) or other applicable A.R.S. § 42-5066(B) exemptions, gross income or gross proceeds derived from all of a printer's costs or expenses of filling a customer's printing order are subject to tax under this Article. Examples of costs o…

Sales to a printer of materials that do not become an ingredient or component part of a printing fall under the retail classification (see Article 1 of this Chapter) and are subject to tax unless otherwise exempt under A.R.S. § 42-5061. Examples of such materials include color pr…

A. In this Section: 1. "Consignee" means the party that is in the business of selling tangible personal property belonging to a consignor. 2. "Consignor" means the party with the legal right to contract the services of the consignee to sell tangible personal property on behalf of…

A. A printer shall not deduct the cost of subletting job printing, engraving, embossing, or copying activities. B. A printer shall not deduct the cost of labor or materials employed in the job printing, engraving, embossing, or copying activity of another person. Notes Ariz. Admi…

A. Gross income or gross proceeds derived from a sale of image developing in which the image developing is not part of a sale of photography are subject to tax under this Article. B. Gross income or gross proceeds derived from a sale of image developing to a business that resells…

A. Gross receipts from the sales of tangible personal property by an auctioneer are subject to tax under the retail classification. B. Except as provided in subsection (C), an auctioneer shall obtain a transaction privilege tax license before conducting an auction. C. An auctione…

A. Gross receipts from the sale of tangible personal property by a trustee, receiver, or assignee are subject to tax if the sale of the property in the hands of the owner would be subject to tax. B. Gross receipts from the sale of tangible personal property by a trustee, receiver…

Notes Ariz. Admin. Code § R15-5-114

Notes Ariz. Admin. Code § R15-5-115

Notes Ariz. Admin. Code § R15-5-116

Notes Ariz. Admin. Code § R15-5-117

Notes Ariz. Admin. Code § R15-5-118

Notes Ariz. Admin. Code § R15-5-119

A. Machinery or equipment used in manufacturing or processing includes machinery or equipment that constitutes the entire primary manufacturing or processing operation from the initial stage where actual processing begins through the completion of the finished end product, proces…

The sale of fuel used or consumed in a manufacturing process is taxable. The fuel is not considered to be incorporated into the manufactured product. Notes Ariz. Admin. Code § R15-5-121 Renumbered from R15-5-1830 effective August 9, 1993 (Supp. 93-3).

A. Sales of articles to be incorporated into a fabricated or manufactured product are considered to be sales for resale and, therefore, exempt. For example, the sale of wood to a furniture manufacturer is a sale for resale. B. In order for the exemption to apply, the materials mu…

The sale of tools, supplies, and other articles to be used or consumed by persons in the operation of their businesses, and not for resale, are taxable as retail sales. Notes Ariz. Admin. Code § R15-5-123 Renumbered from R15-5-1849 effective August 9, 1993 (Supp. 93-3).

Notes Ariz. Admin. Code § R15-5-124

Notes Ariz. Admin. Code § R15-5-125

The cost of labor employed in manufacturing, processing, or fabricating tangible personal property shall not be allowed as a deduction from the gross receipts derived from a sale of such property. Notes Ariz. Admin. Code § R15-5-126 Renumbered from R15-5-1848 and amended effectiv…

A. In this Section, "aviation fuel" and "dyed diesel fuel" have the same meanings as prescribed in A.R.S. §§ 28-101 and 28-5601. B. Gross receipts from the sale of dyed diesel fuel are subject to transaction privilege tax. C. Gross receipts from the sale of liquefied petroleum ga…

A. Gross receipts from the sale of machinery, equipment, or transmission lines for direct use in a transmission system are deductible from the tax base. Gross receipts from the sale of machinery, equipment, or lines for use in a distribution system are taxable. B. Machinery and e…

A. Cash discounts allowed the purchaser for timely payment are permissible as deductions from the sale price. B. Refunds in cash or credit given on returned merchandise are considered to be a reduction of sales. C. When coupons issued by a manufacturer are redeemed by a retailer …

Notes Ariz. Admin. Code § R15-5-130

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…

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…

The cost of printing a publication, including the subletting of printing to another person, is not deductible from the gross income. Notes Ariz. Admin. Code § R15-5-1304

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. Notes Ariz. Admin. Code § R15-5-1305

Gross receipts from lay-away agreements shall be taxable when title or possession transfers to the purchaser or at the time receipts from the transaction are determined to be nonrefundable, whichever occurs first. Notes Ariz. Admin. Code § R15-5-131 Adopted effective August 9, 19…

A. When a retailer accepts tangible personal property as a trade-in for part or full payment on the sale of tangible personal property, the dollar amount of the payment represented by the trade-in is deductible from the retailer's gross receipts from that sale. B. A trade-in dedu…

A. A charge by a retailer for delivery from the retailer's location to the purchaser's location, if separately stated on the sales invoice, is not taxable. B. When the freight cost is incurred any time prior to the time of the retail sale, such cost is part of the gross sale and,…

A. The sale of containers and bottles is considered a sale for resale only when the purchaser is to transfer the containers with their contents in future sales. B. In cases where the containers are not subsequently sold as part of the merchandise, such sales are deemed to be taxa…

A. Gross receipts from the sale of disposable containers, paper napkins, and other similar food accessories to a person engaged in the restaurant business, who, in the regular course of business, transfers these accessories to facilitate the consumption of the food, drink, or con…

A. Gross receipts from deposits on sales of returnable containers which contain taxable food shall be taxable. B. Deposit refunds paid to purchasers on the return of such containers shall be deductible from the retailer's tax base in the month refunded. C. Gross receipts from dep…

A. For purposes of this rule, the following definitions apply: 1. "Covered" means included in the warranty or service provision. 2. "Warranty or service provision" means a manufacturer's or vendor's warranty that is sold automatically with tangible personal property and, for no e…

A. For purposes of this rule, the following definition applies: "Covered" means included in the warranty or service contract for which the warranty or service contract holder does not pay a separate charge for any tangible personal property used in the servicing of the contract. …