Chapter 5. DEPARTMENT OF REVENUE - TRANSACTION PRIVILEGE AND USE TAX SECTION

A. Effective January 1, 1979, the leasing or renting of dwelling units and lodging facilities to a person shall not be taxable under the transient lodging classification if the lodging is obtained for a continuous block of time for 30 or more consecutive days except as provided u…

A. If a transient lodging facility is engaged in the business of providing lodging and engages in the business of providing meals, the gross receipts from lodging shall be separately stated and reported from the gross receipts from restaurant activities. B. Gross receipts from th…

Gross receipts from providing transient lodging to the United States Government, the state or its political subdivisions, or any other government agency or its employees shall be taxable under the transient lodging classification unless otherwise exempt. Historical Note Adopted e…

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. 2. “Casual activity or sale” means an occasional transaction of an isolated nature made by persons who neither represent themselv…

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. Historical Note Renumbered from R15-5-1817 and amended effective August 9, 1993 (Supp. 93-3). Amended by final rulemaking at 12 A.A.R. …

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. Historical Note Renumbered from R15-5-1815 and amended effective August 9, 1993…

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…

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…

Historical Note Section repealed by final rulemaking at 11 A.A.R. 5493, effective February 6, 2006 (Supp. 05-4).

Historical Note Section repealed by final rulemaking at 11 A.A.R. 5493, effective February 6, 2006 (Supp. 05-4).

Historical Note Section repealed by final rulemaking at 11 A.A.R. 5493, effective February 6, 2006 (Supp. 05-4).

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…

Historical Note Amended effective November 7, 1978 (Supp. 78-6). Section repealed by final rulemaking at 11 A.A.R. 5493, effective February 6, 2006 (Supp. 05-4).

Historical Note Repealed effective April 13, 1987 (Supp. 87-2).

Historical Note Former Section R15-5-1109 repealed, new Section R15-5-1109 adopted effective March 18, 1981 (Supp. 81-2). Amended effective June 25, 1993 (Supp. 93-2). Section repealed by final rulemaking at 11 A.A.R. 5493, effective February 6, 2006 (Supp. 05-4).

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…

Historical Note Repealed effective April 13, 1987 (Supp. 87-2).

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. Historical Note …

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…

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…

Historical Note Repealed effective August 13, 1987 (Supp. 87-3).

Historical Note Repealed effective April 13, 1987 (Supp. 87-2). ARTICLE 13. SALES TAX - PUBLISHING CLASSIFICATION

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. Historical Note 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. Historical Note Renumbered from R15-5-1849 effective August 9, 1993 (Supp. 93-3).

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. Historical Note Renumbered from R15-5-1848 and amended effective August 9, 1993 (Su…

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 …

Historical Note Repealed effective August 13, 1987 (Supp. 87-3).

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…