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

The cost of printing a publication, including the subletting of printing to another person, is not deductible from the gross income.

Income from publications, other than books, mailed or distributed from a point within this state to a point outside the state is subject to the tax under this classification.

Historical Note Repealed effective April 13, 1987 (Supp. 87-2). ARTICLE 14. TRANSPORTING CLASSIFICATION

Gross receipts from lay-away agreements shall be taxable when title or possession transfers to the purchaser or at the time receipts from the transaction are determined to be nonrefundable, whichever occurs first. Historical Note Adopted effective August 9, 1993 (Supp. 93-3).

A. When a retailer accepts tangible personal property as a trade-in for part or full payment on the sale of tangible personal property, the dollar amount of the payment represented by the trade-in is deductible from the retailer’s gross receipts from that sale. B. A trade-in dedu…

A. 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. B. When the freight cost is incurred any time prior to the time of the retail sale, such cost is part of the gross sale and,…

A. The sale of containers and bottles is considered a sale for resale only when the purchaser is to transfer the containers with their contents in future sales. B. In cases where the containers are not subsequently sold as part of the merchandise, such sales are deemed to be taxa…

A. Gross receipts from the sale of disposable containers, paper napkins, and other similar food accessories to a person engaged in the restaurant business, who, in the regular course of business, transfers these accessories to facilitate the consumption of the food, drink, or con…

A. Gross receipts from deposits on sales of returnable containers which contain taxable food shall be taxable. B. Deposit refunds paid to purchasers on the return of such containers shall be deductible from the retailer’s tax base in the month refunded. C. Gross receipts from dep…

A. For purposes of this rule, the following definitions apply: 1. “Covered” means included in the warranty or service provision. 2. “Warranty or service provision” means a manufacturer’s or vendor’s warranty that is sold automatically with tangible personal property and, for no e…

A. For purposes of this rule, the following definition applies: “Covered” means included in the warranty or service contract for which the warranty or service contract holder does not pay a separate charge for any tangible personal property used in the servicing of the contract. …

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

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

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

A. Gross proceeds of sales or gross income from charges for excess baggage shipped from one point to another point in this state is included in the tax base under the transporting classification except as provided in subsection (B). B. Gross proceeds of sales or gross income from…

Gross proceeds of sales or gross income from demurrage charges is included in the tax base under the transporting classification unless the transporting to which it relates is excluded from the transporting classification. Historical Note Amended by final rulemaking at 6 A.A.R. 2…

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

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

A. Gross proceeds of sales or gross income from transporting by aircraft freight or property from one point to another point in this state is included in the tax base under the transporting classification. B. A charge for the use of an aircraft when a pilot is not provided is ren…

A. In this Section: 1. “Motion picture” has the same meaning as prescribed in A.R.S. § 41-1517. 2. “Motion picture production company” has the same meaning as prescribed in A.R.S. § 41-1517. 3. “Photography” means the process of taking and supplying images to customers, using fil…

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

A. Gross income derived from the rental of tangible personal property is included in the tax base under the personal property rental classification unless a specific statutory exemption, exclusion, or deduction applies. Examples of tangible personal property include: televisions,…

A. In this Section: 1. “Business location” means the business address that appears on a lessor’s privilege license, but if the lessor does not have a business address in Arizona, business location means the lessee’s residential or primary business street address. 2. “Source” mean…

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

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

A lessor’s gross income from the rental of tangible personal property to the United States Government, the state of Arizona, or other governmental subdivisions is taxable under the personal property rental classification unless a specific statutory exemption, exclusion, or deduct…

A lessor’s gross income from the rental of tangible personal property to a school, church, or other nonprofit organization is taxable under the personal property rental classification unless a specific statutory exemption, exclusion, or deduction applies. Historical Note Amended …

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

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

A. Gross receipts from the sale of paintings, drawings, etchings, sculptures, craftwork, other artwork or reproductions of such items to final consumers shall be taxable under the retail classification if the person is making regular sales of these items. B. Gross receipts from t…

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

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

A. A lessor’s gross income from the leasing of tangible personal property that includes an option to purchase the tangible personal property is taxable under the personal property rental classification until the lessee exercises the purchase option. B. Gross income received after…

Historical Note Adopted effective November 7, 1978 (Supp. 78-6). Section repealed by final rulemaking at 6 A.A.R. 3091, effective July 18, 2000 (Supp. 00-3). ARTICLE 16. COMMERCIAL LEASE CLASSIFICATION

The gross receipts from the sale of tangible personal property incorporated or fabricated into any real property, structure, project, development or improvement under a contract specified in A.R.S. § 42‑1310.16 (B)(6) are exempt from tax. The gross receipts from the sale of tangi…

Gross receipts from the sale of pipes, valves, or fire hydrants with an inside diameter of four inches or more are deductible from the tax base if the pipes, valves, or fire hydrants are to be used to transport oil, natural gas, artificial gas, water, or coal slurry. Historical N…

A. Gross receipts derived from services rendered in whole or in part in connection with the sale of computer hardware are exempt, including gross receipts derived from charges imposed for professional and technological services such as analysis, design, support engineering servic…

A. In this Section: 1. “Delivery sale” means a sale made by using any of the following: a. The mail or a delivery service. b. The Internet or a computer network. c. Any other electronic method. 2. “Tobacco product” has the same meaning as prescribed in A.R.S. § 36-798.06. B. A re…

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…