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

The gross receipts from sales of bottled gases and bottled water are subject to tax under the retail classification unless otherwise exempt. Historical Note 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 …

Historical Note Repealed effective October 17, 1997 (Supp. 97-4).

Historical Note Repealed effective April 13, 1987 (Supp. 87-2).

Historical Note Repealed effective April 13, 1987 (Supp. 87-2).

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…

Historical Note 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 rule readopted with c…

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. Historical Note Section R15-5-2203 renumbered to R15-5-2201, new Section R15-5-2203 renumbered from R15-5-2206 and a…

Historical Note Amended effective October 15, 1980 (Supp. 80-5). Section R15-5-2204 repealed, new Section R15-5-2204 renumbered from R15-5-2207 and amended effective October 14, 1993 (Supp. 93-4). Amended by exempt rulemaking at 25 A.A.R. 3010, effective October 1, 2019 (Supp. 19…

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. 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 wholesa…

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…

Historical Note 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). Section expired under…

Historical Note 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…

A. For purposes of this Section, the following definitions apply: 1. “Accrual method” means that a sale is reported in the reporting period in which the sale occurs regardless of when payment is received. 2. “Cash receipts method” means that a sale is reported in the reporting pe…

Marketplace facilitators and remote sellers registered with the Department shall report and remit the applicable taxes payable pursuant to A.R.S. § 42-5044 in aggregate total amounts for each applicable jurisdiction designated by AZTaxes.gov. A marketplace facilitator shall not b…

Historical Note Former Section R15-5-2213 renumbered to R15-5-2211, new Section R15-5-2213 adopted effective October 14, 1993 (Supp. 93-4). Amended by final rulemaking at 7 A.A.R. 5065, effective October 5, 2001 (Supp. 01-4). Section repealed by exempt rulemaking at 25 A.A.R. 301…

A. The vendor is responsible for the payment of tax and therefore shall provide sufficient documentation in support of all deductions. B. The vendor may establish a deduction or exclusion from the tax base pursuant to A.R.S. § 42-1316 or 42-1328. 1. If the purchaser does not have…

A. For purposes of this rule, the following definitions apply: 1. “Annual estimated tax payment” means ½ 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 liabi…

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…

Historical Note Repealed effective September 24, 1986 (Supp. 86-5).

Historical Note Renumbered to R15-5-3005 effective July 23, 1985 (Supp. 85-4).

Historical Note Repealed effective July 23, 1985 (Supp. 85-4). New Section R15-5-2220 renumbered from R15-5-2363 and amended effective October 14, 1993 (Supp. 93-4). Repealed by exempt rulemaking at 25 A.A.R. 3010, effective October 1, 2019 (Supp. 19-3).

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…

Historical Note Repealed effective February 22, 1989 (Supp. 89-1).

Historical Note Repealed effective February 22, 1989 (Supp. 89-1).

Historical Note Repealed effective March 18, 1981 (Supp. 81-2).

Historical Note Repealed effective March 18, 1981 (Supp. 81-2).

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

Historical Note Repealed effective February 22, 1989 (Supp. 89-1).

Historical Note Repealed effective September 24, 1986 (Supp. 86-5).

Historical Note Repealed effective September 24, 1986 (Supp. 86-5).

Historical Note Repealed effective September 24, 1986 (Supp. 86-5).

Historical Note Repealed effective September 24, 1986 (Supp. 86-5).

Historical Note Repealed effective September 24, 1986 (Supp. 86-5).

Historical Note Repealed effective September 24, 1986 (Supp. 86-5).

Historical Note Repealed effective September 24, 1986 (Supp. 86-5).

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

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

Historical Note Adopted effective April 21, 1994 (Supp. 94-2). Section repealed by final rulemaking at 9 A.A.R. 5042, effective January 3, 2004 (Supp. 03-4).

Historical Note Adopted effective April 21, 1994 (Supp. 94-2). Section repealed by final rulemaking at 11 A.A.R. 5214, effective November 10, 2005 (Supp. 05-4).

Historical Note Adopted effective April 21, 1994 (Supp. 94-2). Section repealed by final rulemaking at 11 A.A.R. 5214, effective November 10, 2005 (Supp. 05-4). ARTICLE 23. USE TAX