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

In this Article: 1. “Purchases” means purchase for storage, use, or consumption in Arizona. 2. “Retailer” has the same meaning as prescribed in A.R.S. § 42-5151, but does not include a marketplace facilitator or remote seller who meets the threshold requirements in A.R.S. § 42-50…

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 retailer or utility business’s gross receipts from the sale have not already been included in the measure of Arizona tra…

Historical Note Repealed effective January 16, 1997 (Supp. 97-1).

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…

Historical Note Section expired under A.R.S. § 41-1056(E) at 13 A.A.R. 1744, effective March 31, 2007 (Supp. 07-2).

Historical Note Section repealed by final rulemaking at 11 A.A.R. 2293, effective August 6, 2005 (Supp. 05-2).

Historical Note Section repealed by final rulemaking at 11 A.A.R. 2293, effective August 6, 2005 (Supp. 05-2).

Historical Note Section repealed by final rulemaking at 11 A.A.R. 2293, effective August 6, 2005 (Supp. 05-2).

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…

Historical Note Former Section R15-5-2311 repealed, new Section R15-5-2311 adopted effective August 7, 1985 (Supp. 85-4).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. Historical Note Former Section R15-5-2312 repealed, new Section R15-5-2312 adopted effective September 29, 1993 (Supp. 93-3).

Historical Note Former Section R15-5-2313 repealed, new Section R15-5-2313 adopted effective September 29, 1993 (Supp. 93-3).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). Section expired under A.R.S. § 41-1056(J) at 23 A.A.R. 2207, effec…

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…

Historical Note Former Section R15-5-2315 renumbered to R15-5-3006 effective July 23, 1985 (Supp. 85-4).

Historical Note Repealed effective September 29, 1993 (Supp. 93-3).

Historical Note Former Section R15-5-2317 renumbered to R15-5-2352 effective September 29, 1993 (Supp. 93-3).

Historical Note Repealed effective September 29, 1993 (Supp. 93-3).

Historical Note 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…

Historical Note 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 R15-5-2314 effective Septembe…

Historical Note Former Section R15-5-2322 renumbered to R15-5-2309 effective September 29, 1993 (Supp. 93-3).

Historical Note Amended effective November 7, 1978 (Supp. 78-6). Repealed effective September 29, 1993 (Supp. 93-3).

Historical Note Repealed effective September 29, 1993 (Supp. 93-3).

Historical Note Repealed 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. Historical Note Former Section R15-5-2326 repealed, new Section R15-5-2326 adopted ef…

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. Historical Note Former Section R15-5-2328 renumbered to R15-5-2361, new …

R15-5-2330. Tangible Personal Property Used in Conjunction with Warranty or Service Contracts or Provisions 43

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…

Historical Note Adopted as an emergency effective July 1, 1980, pursuant to A.R.S. § 41-1003, valid for only 90 days (Supp. 80-3). Former emergency adoption now adopted effective October 15, 1980 (Supp. 80-5). Repealed effective September 29, 1993 (Supp. 93-3).

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. Historical Note Adopted effective December 6, 1990 (Supp. 90-4). Former Section R15-5-2332 renumbered to R15-5-2350, new Sectio…

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…

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. Historical Note Adopted effective September 29, …

Purchases of computer hardware and software are subject to the use tax based on the same provisions as delineated in R15-5-154. Historical Note 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. I…

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 …

Historical Note Adopted effective December 6, 1990 (Supp. 90-4). Renumbered from R15-5-2332 effective September 29, 1993 (Supp. 93-3). Repealed by exempt rulemaking at 25 A.A.R. 3010, effective October 1, 2019 (Supp. 19-3).