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

A. For purposes of this rule, the following definitions apply:1. "Annual estimated tax payment" means 1/2 of the total tax liability for the entire month of May or the total tax liability for the first 15 days of the month of June. 2. "Annual tax liability" means a total tax liab…

A. In this Section: 1. "Affiliated person" has the same meaning as prescribed in A.R.S. § 42-5043. 2. "Incorrect information" means any information that was given to the marketplace facilitator by the marketplace seller and that is not accurate. Incorrect information does not inc…

A. Pursuant to A.R.S. 42-1125, the Department shall not apply specified civil penalties for failure to pay a required amount of transaction privilege tax or file a required transaction privilege return if reasonable cause exists and the failure to pay was not due to willful negle…

Notes Ariz. Admin. Code § R15-5-2219 Renumbered to R15-5-3005 effective July 23, 1985 (Supp. 85-4).

A. Arizona purchasers regularly making purchases from unlicensed vendors, where the purchases are subject to use tax, shall obtain a use tax license and remit payments directly to the Department. B. An Arizona purchaser who is licensed in Arizona shall remit the use tax to the De…

A vendor collecting use tax from a purchaser shall keep and preserve suitable records and other books and accounts necessary to determine the tax collected for the statutorily prescribed limitation period. For purposes of this rule, the limitation period is the period of time for…

Notes Ariz. Admin. Code § R15-5-2238

Notes Ariz. Admin. Code § R15-5-2239

In this Article: 1. "Mail order retailer" means a retailer who solicits orders by mail, notwithstanding the fact that orders may be received by telephone or by mail or that goods may be delivered by mail or by private delivery system. 2. 1. "Purchases" means purchase for storage,…

A. In this Section, "retailer" and "utility business" have the same meanings as prescribed in A.R.S. § 42-5151 . B. A. A.R.S. § 42-5155 imposes Arizona use tax upon a purchaser that purchases tangible personal property from an out-of-state retailer or utility business if the reta…

A. If tangible personal property is purchased outside Arizona and is subsequently brought into this state for use, storage, or consumption, the purchaser of such property shall be subject to the Arizona use tax unless the purchaser establishes to the satisfaction of the Departmen…

Notes Ariz. Admin. Code § R15-5-2305 Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1744, effective March 31, 2007 (Supp. 07-2).

A. Purchases of tangible personal property from a retailer for resale in the ordinary course of the purchaser's business are not subject to use tax. B. Purchases of tangible personal property from a retailer for subsequent leasing or renting in the ordinary course of the purchase…

A. Use tax must be paid to:1. An out-of-state vendor holding a certificate of authority for the collection of use tax, or 2. The Department, in cases where the vendor is not a marketplace facilitator or remote seller liable for transaction privilege tax under A.R.S. § 42-5044 or …

Notes Ariz. Admin. Code § R15-5-2311 Former Section R15-5-2311 repealed, new Section R15-5-2311 adopted effective August 7, 1985 (Supp. 85-4). Former Section R15-5-2311 renumbered to R15-5-2304 effective September 29, 1993 (Supp. 93-3).

Tangible personal property purchased in a casual sale, as defined in R15-5-2001, is not taxable. Notes Ariz. Admin. Code § R15-5-2312 Former Section R15-5-2312 repealed, new Section R15-5-2312 adopted effective September 29, 1993 (Supp. 93-3).

Notes Ariz. Admin. Code § R15-5-2313 Former Section R15-5-2313 repealed, new Section R15-5-2313 adopted effective September 29, 1993 (Supp. 93-3). Amended by final rulemaking at 12 A.A.R. 4099, effective December 4, 2006 (Supp. 06-4). Former Section R15-5-2313 repealed, new Secti…

A. Tangible personal property purchased for storage, use, or consumption in Arizona from a trustee, receiver, or assignee is subject to use tax if the purchase of the tangible personal property in the hands of the owner would be subject to use tax. B. Tangible personal property p…

Notes Ariz. Admin. Code § R15-5-2315 Former Section R15-5-2315 renumbered to R15-5-3006 effective July 23, 1985 (Supp. 85-4).

Notes Ariz. Admin. Code § R15-5-2317 Former Section R15-5-2317 renumbered to R15-5-2352 effective September 29, 1993 (Supp. 93-3).

Notes Ariz. Admin. Code § R15-5-2319 Former Section R15-5-2319 renumbered to R15-5-2353 effective September 29, 1993 (Supp. 93-3).

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, and th…

Notes Ariz. Admin. Code § R15-5-2321 Amended effective November 7, 1978, unless otherwise noted (Supp. 78-6). Amended paragraphs (9) and (10) effective March 18, 1981 (Supp. 81-2). Former Section R15-5-2321 renumbered to R15-5-2320, new Section R15-5-2321 renumbered from R15-5-23…

Notes Ariz. Admin. Code § R15-5-2322 Former Section R15-5-2322 renumbered to R15-5-2309 effective September 29, 1993 (Supp. 93-3).

The cost of labor employed in the manufacturing, processing, or fabricating of tangible personal property shall not be allowed as a deduction from the sales price on a purchase of such property. Notes Ariz. Admin. Code § R15-5-2326 Former Section R15-5-2326 repealed, new Section …

A. In this Section, "aviation fuel," "dyed diesel fuel," and "use fuel" have the same meanings as prescribed in A.R.S. §§ 28-101 and 28-5601. B. Except as provided in subsection (D), a purchase of use fuel is subject to use tax under A.R.S. § 42-5155 on the date the consumer is i…

Purchases of machinery, equipment, or transmission lines for direct use in producing or transmitting power but not including distribution are subject to use tax based on the same definitions as in R15-5-128. Notes Ariz. Admin. Code § R15-5-2328 Former Section R15-5-2328 renumbere…

A. For purposes of this rule, the following definition applies: "Covered" means covered as defined in R15-5-138 for tangible personal property under a warranty or service contract, or covered as defined in R15-5-137 for tangible personal property under a warranty or service provi…

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. Notes Ariz. Admin. Code § R15-5-2332 Adopted effective December 6, 1990 (Supp. 90-4). Former Section R15-5-2332 renumbered to R…

Notes Ariz. Admin. Code § R15-5-2333

A. If a person engaged in the restaurant business purchases disposable containers, paper napkins, and other similar food accessories and, transfers these accessories in the regular course of business to facilitate the consumption of the food, drink, or condiment provided, the pur…

Notes Ariz. Admin. Code § R15-5-2335

Notes Ariz. Admin. Code § R15-5-2336

Notes Ariz. Admin. Code § R15-5-2337

Notes Ariz. Admin. Code § R15-5-2338

Notes Ariz. Admin. Code § R15-5-2339

The purchase of tangible personal property for incorporation or fabrication into any real property, structure, project, development or improvement under a contract specified in A.R.S. § 42-5075(B)(6) is exempt from tax. The purchase of tangible personal property used in soil reme…

Purchases of pipes, valves, or fire hydrants with an inside diameter of four inches or more are not taxable if the pipes, valves, or fire hydrants are to be used to transport oil, natural gas, artificial gas, water, or coal slurry. Notes Ariz. Admin. Code § R15-5-2341 Adopted eff…

Purchases of computer hardware and software are subject to the use tax based on the same provisions as delineated in R15-5-154. Notes Ariz. Admin. Code § R15-5-2342 Adopted effective September 29, 1993 (Supp. 93-3).

A. In this Section: 1. "Drug" means an article that, according to federal or state law, is:a. Recognized in the official United States Pharmacopeia, official Homeopathic Pharmacopeia of the United States, official National Formulary, or any supplement to these documents; or b. In…

A. The purchase of postage stamps is not subject to use tax if the stamps are purchased for the purpose of transporting mail. B. The purchase of postage stamps is subject to use tax if the stamps are purchased for any purpose other than transporting mail. C. The Department shall …

Notes Ariz. Admin. Code § R15-5-2345

Notes Ariz. Admin. Code § R15-5-2346

Notes Ariz. Admin. Code § R15-5-2347

Notes Ariz. Admin. Code § R15-5-2348

Notes Ariz. Admin. Code § R15-5-2349

Purchases of tangible personal property by non-U.S. citizens shall be subject to the use tax unless otherwise exempt. Notes Ariz. Admin. Code § R15-5-2351 Adopted effective September 29, 1993 (Supp. 93-3).