Title 42 — Taxation

A. On or before March 1 of each year, beginning in 2001, the director shall submit a detailed report of employee misconduct verified as valid to the governor, the speaker of the house of representatives and the president of the senate. The report shall include: 1. All categories …

A. The director may relieve an individual from joint and several liability under the following circumstances: 1. Taking into account all of the facts and circumstances, it is inequitable to hold the individual liable for all or part of any unpaid tax or any deficiency. 2. Relief …

A. An audit of a taxpayer's return or claim for refund shall not exceed two years after the date of initial audit contact to the issuance of a notice of proposed deficiency assessment or proposed overpayment, except: 1. An audit of a fraudulent tax return. 2. An audit delayed as …

At the time when the department issues a deficiency assessment or denies all or part of a claim for refund, the department shall also provide the taxpayer and, if applicable, the taxpayer's authorized representative with a written explanation of all adjustments made, including th…

A. Beginning October 1, 2006, the agencies listed in this section shall provide tax decisions to the law libraries of Maricopa county, the Arizona state university college of law, the university of Arizona college of law, the state law library and the Arizona state library, archi…

A. Unless expressly authorized by law, the department shall not apply any newly enacted law retroactively or in a manner that will penalize a taxpayer for complying with prior law. B. If the department adopts a new interpretation or application of any provision of this title or t…

A. Notwithstanding sections 42-1107 and 42-1123, the director shall specify a period of up to one year to extend any due date and suspend any penalty or interest that would ordinarily accrue during that time for any affected taxpayer in any of the following circumstances: 1. Sect…

B. The department shall establish and maintain on its website a publicly accessible record of all draft and final rulings, procedures, notices and administrative announcements and shall prominently announce additions, modifications and other changes to this record on the departme…

A. The department may issue private taxpayer rulings to taxpayers and potential taxpayers on request. Each request shall be in writing and shall: 1. State the name, address and, if applicable, taxpayer identifying number of the taxpayer or potential taxpayer who requests the ruli…

A. The department of revenue and the department of economic security shall cooperatively prepare and provide a single form by which any person desiring to engage in business may obtain: 1. Employer identification numbers for income tax withholding and unemployment insurance purpo…

The department of revenue shall: 1. Obtain and keep on file a list of the agencies, boards, commissions and departments, their addresses and telephone numbers and the subjects over which they have authority. 2. Provide a copy of this list to any person requesting a form under sec…

The department of revenue shall: 1. Develop a questionnaire that a person desiring to engage in business may fill out and return to the department. The questionnaire shall elicit information about the nature, size, form and operations of the proposed business. 2. Forward copies o…

This article does not: 1. Require any person to utilize the forms or procedures provided for in this article. 2. Eliminate other registration and licensing efforts by the department of revenue and the department of economic security.

A. Notwithstanding section 43-301, subsection C and section 43-562, after filing a joint income tax return pursuant to section 43-309, a taxpayer may seek relief from joint and several liability under the following circumstances: 1. There is an understatement of tax attributable …

A. Notwithstanding section 43-301, subsection C and section 43-562, a taxpayer who filed a joint income tax return under section 43-309 for a taxable year and who meets the following requirements may elect to limit the taxpayer's liability pursuant to this section with respect to…

A. Notwithstanding section 42-1122, at the time of filing a joint income tax return pursuant to section 43-309, a taxpayer may apply to the department for protection of the taxpayer's share of any overpayment or refund from setoff for the past due state taxes, child support, spou…

In this article, unless the context otherwise requires: 1. "Computer software executable code" includes: (a) Any object code, machine code or other code that is readable by a computer when loaded into its memory and used directly by the computer to execute instructions. (b) Any r…

A. Except as provided in section 42-2253, the department shall not issue any subpoena duces tecum under section 42-1006 or 42-1112 or commence any proceeding or action to enforce any subpoena duces tecum to produce any computer software source code. B. Subsection A of this sectio…

A. Notwithstanding section 42-2252, the department may issue a subpoena duces tecum for computer software if: 1. The department is unable to otherwise reasonably ascertain the correctness of any item on a return from either: (a) The taxpayer's books, papers, records or other data…

A. Any software or related materials that are provided to the department under this article are subject to the safeguards provided in this section. B. In any court proceeding to enforce a subpoena duces tecum for any portion of software, the court may receive evidence and issue a…

In this article, unless the context otherwise requires: 1. "Limited managed audit agreement" means a managed audit agreement that is limited in scope to certain periods, activities, lines of business, geographic areas or transactions, including tax on the receipts of certain sale…

A. On application by a taxpayer, the director, in the director's sole discretion, may agree to a managed audit with the taxpayer. The managed audit agreement shall: 1. Be signed by the taxpayer and the director. 2. Contain a declaration by the taxpayer that all statements of fact…

A. The taxpayer or the taxpayer's representative shall furnish written findings of the managed audit to the director. B. The director shall review the written findings and may examine records and perform other reviews that the director deems necessary to verify that the managed a…

A. Notwithstanding section 42-1125, the director shall not assess any penalties unless the managed audit discloses that the taxpayer committed fraud or wilful tax evasion or that the taxpayer collected monies that were represented as tax but were not remitted to the state. B. Not…

In this chapter, unless the context otherwise requires: 1. "Affix" and "affixed" include imprinting tax meter stamps on packages and individual containers as authorized by the department. 2. "Brand family" has the same meaning prescribed in section 44-7111. 3. "Cavendish" means a…

The area of luxury taxation is preempted by the state. A county, city, town or other political subdivision of this state shall not levy a luxury tax, as long as the urban revenue sharing fund is maintained as provided in section 43-206.

A. This chapter shall be administered by the department of revenue according to chapter 1, articles 1 and 3 of this title and this chapter. B. In the administration of this chapter the department, its agents and representatives shall possess: 1. The powers, duties and authority o…

The department may: 1. Adopt rules, not in conflict with this chapter, necessary for the enforcement of this chapter, including rules relating to refunds of taxes paid under this chapter. 2. Adopt different detailed rules applicable to diverse methods and conditions of sale or us…

A. The department shall appoint, as necessary, such agents, clerks and stenographers authorized by law who: 1. Shall perform duties as may be required not inconsistent with this chapter. 2. May act for the department as it prescribes and as provided by this chapter. B. Each agent…

A. The department shall prepare and have on hand official adhesive stamps according to the classifications in section 42-3052 of luxuries upon which a tax is imposed by this chapter and for which the department either collects payment or prepayment of the tax through the purchase…

A. Except as provided in subsection C of this section, the tax imposed by this chapter on any luxury shall be refunded when the amount of the tax has been paid and when one of the following applies: 1. Proof is made to the department that the luxuries were exported from this stat…

The tax imposed by this chapter shall not be imposed upon any article or substance sold in interstate commerce and that this state is prohibited from taxing under the Constitution of the United States.

B. Every wholesaler, distributor or retailer shall procure and retain invoices showing the amount and value of each purchase or shipment of any luxuries received, the date of the shipment, the name and location of the shipper and the value of the purchase or shipment. Except as o…

In addition to all other taxes there is levied and imposed and there shall be collected and deposited, pursuant to sections 35-146 and 35-147, in the manner provided by this chapter, taxes on all spirituous, vinous and malt liquors and on all cigarettes, cigars, smoking tobacco, …

The taxes under this chapter are imposed at the following rates: 1. On each sealed container of spirituous liquor at the rate of three dollars per gallon and at a proportionate rate for any lesser or greater quantity than one gallon. 2. On each container of vinous liquor, except …

A. All orders for the purchase or receipt of tax stamps required under this chapter must be submitted pursuant to an electronic filing program established by the department. Except as provided in subsection B of this section, all remittances of taxes for the purchase of Arizona t…

The department shall deposit, pursuant to sections 35-146, 35-147 and 42-1116, all monies received under this chapter accompanied by a monthly statement showing the amount received from each class of luxury prescribed by section 42-3052.

Unless otherwise provided by this article or article 6 or 7 of this chapter, the department shall deposit, pursuant to sections 35-146 and 35-147, all monies collected pursuant to this chapter in the state general fund.

The department shall allocate the following monies for the purpose of state school aid: 1. 1.17 per cent of the monies collected pursuant to section 42-3052, paragraph 1. 2. 14 per cent of the monies collected pursuant to section 42-3052, paragraph 3. 3. 19.44 per cent of the mon…

The department shall deposit, pursuant to sections 35-146, 35-147 and 42-1116, the following monies in the corrections fund established by section 41-1641: 1. 20 percent of the monies collected pursuant to section 42-3052, paragraph 1. 2. 50 percent of the monies collected pursua…

A. Notwithstanding any law to the contrary, seven percent of the monies collected pursuant to section 42-3052, paragraph 1 and eighteen percent of the monies collected pursuant to section 42-3052, paragraphs 2, 3 and 4 shall be deposited in the drug treatment and education fund e…

A. All books, papers, invoices and records of any wholesaler, distributor or retailer whether or not required under this chapter to be kept, showing sales, receipts and purchases of luxuries, shall be open for inspection by the department as follows: 1. Except as provided in para…

A. Every tax and all increases, interest and penalties imposed by this article, from the time they are due and payable, become a personal debt of the taxpayer to this state. B. A person who fails to remit any additional charge made to cover the tax or truthfully account for and p…

A. Every tax and all increases, interest and penalties imposed by this article may be collected by action in tax court instituted in the name of this state by the attorney general upon request of the department. This remedy is in addition to existing remedies or those provided by…

A. It is unlawful for any person to knowingly fail or refuse to permit any lawful examination of any book, paper, account, record or other memoranda by the department or any of its authorized agents or employees. A person violating this section is guilty of a class 2 misdemeanor.…

(Caution: 1998 Prop. 105 applies) A. In addition to all other taxes, and in addition to the tax levied and imposed by article 2 of this chapter, there is levied and shall be collected by the department and paid to the state treasurer in the manner provided by this chapter on all …

(Caution: 1998 Prop. 105 applies) A. In addition to the taxes imposed by section 42-3251, paragraphs 1 through 5, there is levied and shall be collected an additional tax of one and one-half times the tax prescribed in that section on January 1, 2002. B. Monies collected pursuant…

(Caution: 1998 Prop. 105 applies) A. In addition to the taxes imposed by 42-3251(1), there is levied and shall be collected an additional tax of one tenth of one cent on each cigarette. B. Monies collected pursuant to this section shall be deposited, pursuant to §§ 35-146 and 35-…

The department shall deposit, pursuant to sections 35-146 and 35-147, monies levied and collected pursuant to this article in the tobacco tax and health care fund established by section 36-771 for use as prescribed by title 36, chapter 6, article 8.

Unless otherwise provided, the administration of this article is vested in and shall be exercised by the department according to chapters 1 and 2 of this title and articles 1, 2, 3 and 4 of this chapter, this article and articles 10, 11 and 12 of this chapter.