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

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). Notes Ariz. Admin. Code § R15-5-1705 Amended effective December 16, 1997 (Supp. 97-4).

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. Notes Ariz. Admin. Code § R15-5-1706 Amended effective December 16, 1997 (Supp. 97-4).

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 se…

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. Notes Ariz. Admin. …

Gross receipts from sales made to a common carrier, engaged in interstate business, for delivery by the common carrier to a location outside of Arizona and for use outside of Arizona shall not be taxable if the order is received from a location outside of Arizona and the Arizona …

A. Gross receipts from sales made by florists are taxable. Delivery and relay or transmittal charges, when separately stated, are deductible from the tax base. B. Orders received by an Arizona florist from an out-of-state customer for delivery within Arizona are taxable. Orders r…

Gross receipts from sales of tangible personal property by Arizona vendors made to purchasers who subsequently take the property out-of-state do not qualify as exempt unless otherwise specifically exempted by statute. Notes Ariz. Admin. Code § R15-5-173 Adopted effective August 9…

Gross receipts from sales to non-U.S. citizens are subject to the tax unless otherwise exempt. Notes Ariz. Admin. Code § R15-5-174 Adopted effective August 9, 1993 (Supp. 93-3).

Notes Ariz. Admin. Code § R15-5-175 Adopted effective August 9, 1993 (Supp. 93-3). Adopted effective August 9, 1993 (Supp. 93-3). Section expired under A.R.S. § 41-1056(J) at 22 A.A.R. 2054, effective March 31, 2016 (Supp. 16-3).

Notes Ariz. Admin. Code § R15-5-176 Adopted effective August 9, 1993 (Supp. 93-3). Section expired under A.R.S. § 41-1056(E) at 7 A.A.R. 2012, effective March 31, 2001 (Supp. 01-2).

Notes Ariz. Admin. Code § R15-5-177

Notes Ariz. Admin. Code § R15-5-178

Notes Ariz. Admin. Code § R15-5-179

Gross receipts from sales by businesses not operated by or as an agency of the Federal Government, located on military bases or other federal areas, are subject to tax. Notes Ariz. Admin. Code § R15-5-180 Renumbered from R15-5-1825 and amended effective August 9, 1993 (Supp. 93-3…

A. Gross receipts from the sale of tangible personal property to the state or its political subdivisions are taxable unless otherwise exempt. Gross receipts from the sale of tangible personal property to the Federal Government or its departments and agencies are taxable at the ra…

A. Gross receipts from the sale of tangible personal property to nonprofit churches, schools, and other nonprofit organizations are subject to tax unless otherwise exempt. B. Gross receipts from the sale of tangible personal property by a charitable nonprofit organization, recogn…

A. Gross receipts from the sale of tangible personal property to qualifying hospitals, qualifying health care organizations, rehabilitation programs for mentally or physically handicapped persons, and qualifying community health centers are exempt from tax if such purchases are e…

For the purpose of these rules, unless the context requires otherwise, the following definitions will apply: 1. "Accessory food items" means coffee, tea, cocoa, carbonated and uncarbonated drinks, candy, condiments and spices, and other non-staple foods. 2. "Attendant" means a pe…

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 tw…

Notes Ariz. Admin. Code § R15-5-2001 Repealed effective August 13, 1987 (Supp. 87-3). New Section R15-5-2001 renumbered from R15-5-202 and amended effective October 14, 1993 (Supp. 93-4). R15-5-2001(4)corrected to reflect an updated citation reference to Arizona Revised Statutes …

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 meet…

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. Notes Ariz. Admin. Code § R15-5-2003 Repealed effective April 13, 1987 (Supp. 87-2). Adopted by exempt rulemaking at 25 A.A.R. 30…

A. A taxpayer with multiple licenses for separate businesses shall maintain separate records for each licensed business, including details relating to the computation of taxes and exempt sales and digital or hard copies of applicable exemption certificates, as provided in subsect…

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…

Notes Ariz. Admin. Code § R15-5-2008

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 re…

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 …

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 bas…

Notes Ariz. Admin. Code § R15-5-202 Section R15-5-202 renumbered to R15-5-2001 effective October 14, 1993 (Supp. 93-4).

Notes Ariz. Admin. Code § R15-5-204 Section R15-5-204 renumbered to R15-5-2002 effective October 14, 1993 (Supp. 93-4).

Notes Ariz. Admin. Code § R15-5-2102 Renumbered to R15-5-3024 (Supp. 86-6).

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 outs…

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 …

The gross receipts from sales of bottled gases and bottled water are subject to tax under the retail classification unless otherwise exempt. Notes Ariz. Admin. Code § R15-5-2106 Amended effective March 18, 1981 (Supp. 81-2). Amended effective October 17, 1997 (Supp. 97-4).

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 …

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…

Notes Ariz. Admin. Code § R15-5-212 Emergency rule adopted effective April 10, 1990, pursuant to A.R.S. § 41-1026, valid for only 90 days; emergency rule readopted with changes effective June 18, 1990, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 90-2). Emergency r…

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 pr…

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 t…

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. Notes Ariz. Admin. Code § R15-5-2203 Section R15-5-2203 renumbered to R15-5-2201, new Section R15-5-2203 renumbered …

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. …

A. In this Section, "affiliated person" has the same meaning as prescribed in A.R.S. § 42-5043. A. 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 whol…

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 l…

Notes Ariz. Admin. Code § R15-5-2208 Repealed effective October 14, 1993 (Supp. 93-4). New Section made by exempt rulemaking at 16 A.A.R. 1226, effective June 15, 2010; Section number corrected at request of Department, Office File No. M11-118, filed March 31, 2011 (Supp. 10-2). …

Notes Ariz. Admin. Code § R15-5-2209 Section R15-5-2209 renumbered to R15-5-2205 effective October 14, 1993 (Supp. 93-4).

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 i…

"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…