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

A. Membership, admission, or other fees charged by a limited-access retail business shall be considered part of the taxable gross income of the business activity. B. For purposes of this rule, “a limited-access retail business” means a business which does not sell to the general …

A. A retailer’s gross receipts from the sale of postage stamps are not included in the tax base under the retail classification if the stamps are sold for the purpose of transporting mail. B. A retailer’s gross receipts from the sale of postage stamps are included in the tax base…

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…

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, …

Historical Note Amended effective November 7, 1978, unless otherwise noted (Supp. 78-6). Section R15-5-1603 renumbered to R15-5-1601 effective April 21, 1995 (Supp. 95-2).

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 count…

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, …

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 class…

Historical Note Amended effective November 1, 1976 (Supp. 76-5). Amended effective November 7, 1978 (Supp. 78-6). Section R15-5-1607 renumbered to R15-5-1602 effective April 21, 1995 (Supp. 95-2).

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 g…

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 li…

Historical Note Amended effective April 21, 1995 (Supp. 95-2). Section expired under A.R.S. § 41-1056(E) at 12 A.A.R. 4742, effective September 30, 2006 (Supp. 06-4).

Historical Note Repealed effective January 16, 1997 (Supp. 97-1).

Historical Note Repealed effective January 16, 1997 (Supp. 97-1).

Historical Note Amended effective November 1, 1976 (Supp. 76-5). Repealed effective April 21, 1995 (Supp. 95-2).

Historical Note Amended effective November 7, 1978, unless otherwise noted (Supp. 78-6). Renumbered to R15-5-1001 (Supp. 94-2).

Historical Note Amended effective November 7, 1978 (Supp. 78-6). Renumbered to R15-5-1002 (Supp. 94-2).

Historical Note Repealed effective April 21, 1995 (Supp. 95-2).

Historical Note Repealed effective April 21, 1995 (Supp. 95-2). ARTICLE 17. RESTAURANT CLASSIFICATION

A. Gross receipts from sales of tangible personal property made in interstate or foreign commerce are deductible from the tax base if all of the following apply: 1. The order is received from a location outside of Arizona; and 2. The retailer ships or delivers the tangible person…

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

Historical Note Amended effective November 7, 1978 (Supp. 78-6). Repealed April 21, 1995 (Supp. 95-2).

R15-5-1704. Providing Food or Drink to Government Agencies 26

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 exe…

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). Historical Note 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. Historical Note Amended effective December 16, 1997 (Supp. 97-4).

Historical Note Repealed effective January 16, 1997 (Supp. 97-1).

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. Historical Note Ado…

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. Historical Note Adopted effective August 9, 1993 (Supp. 93-3).

Gross receipts from sales to non-U.S. citizens are subject to the tax unless otherwise exempt. Historical Note Adopted effective August 9, 1993 (Supp. 93-3).

Historical Note 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).

Historical Note 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).

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. Historical Note Renumbered from R15-5-1825 and amended effective August 9, 1993 (Supp. 93-3). Amended by final …