Title 42 — Taxation
14 chapters · 841 sections in this title.
A.R.S. § 42-3301 Definitions
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In this article, unless the context otherwise requires: 1. "Indian" means any person who is duly registered on the tribal rolls of an Indian tribe that occupies an Indian reservation. 2. "Indian reservation" means all lands that are held in trust by the United States within the l…
A.R.S. § 42-3302 Levy; rates; disposition of revenues
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(Caution: 1998 Prop. 105 applies) A. In addition to all other taxes, there is levied and shall be collected by the department a tax on the purchase on an Indian reservation of cigarettes, cigars, smoking tobacco, plug tobacco, snuff and other forms of tobacco at the rates prescri…
A.R.S. § 42-3303 Tax on the consumer; precollection and remission by distributor
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A. The taxes levied pursuant to this article are conclusively presumed to be direct taxes on the consumer but shall be precollected and remitted to the department by the distributor for purposes of convenience and facility only. The taxes that the distributor precollects and pays…
A.R.S. § 42-3303.01 Stamps required for cigarettes sold on Indian reservations to enrolled tribal members; definition
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A. From and after December 31, 2014, for cigarettes purchased on an Indian reservation by an enrolled member of the governing tribe: 1. Where that tribe does not levy an excise tax on tobacco products or exempts its enrolled members from the tax, a distributor shall affix tax-exe…
A.R.S. § 42-3304 Exemptions; rules
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A. The tax levied by this article does not apply to cigarettes, cigars, smoking tobacco, plug tobacco, snuff and other forms of tobacco: 1. For which the taxes imposed by article 6 of this chapter have been paid. 2. That are sold by an Indian tribe, or by a federally licensed Ind…
A.R.S. § 42-3305 Enforcement; penalty for failure to precollect and remit tax; violation; classification
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A. If the distributor fails to precollect or remit the tax imposed by this article when due, the distributor is subject to a civil penalty equal to the amount of taxes that should have been precollected or remitted but was not. B. A distributor or any person who ships, transports…
A.R.S. § 42-3306 Administration
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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.
A.R.S. § 42-3307 Preemption by state
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This state preempts the area of Indian reservation tobacco taxation. A county, city, town or any other political subdivision of this state shall not levy such a tax. Nothing in this article precludes an Indian tribe from imposing its own tobacco tax or a similar levy.
A.R.S. § 42-3308 Agreements between the department and tribal tax authorities; definition
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B. Any intergovernmental agreement or contract pursuant to subsection A of this section must contain provisions for a uniform or coordinated audit procedure for the Indian reservation tobacco tax imposed by this state under this article and tribal excise tax on tobacco products i…
A.R.S. § 42-3351 Bonds required of liquor wholesalers; exemption
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A. Every wholesaler of spirituous, vinous and malt liquors shall file with the department, in such form as the department prescribes, a bond or bonds, duly executed by the wholesaler as principal, and with a corporation duly authorized to execute and write bonds within the state …
A.R.S. § 42-3352 Reports of distillers and manufacturers
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A. Every distiller or manufacturer of distilled spirits and vinous and malt liquors that sells any of those products to wholesalers within this state shall maintain in its records a copy of the invoice of the sale, showing in detail: 1. The kind of liquor or beverage sold. 2. The…
A.R.S. § 42-3353 Return and payment by cider or malt liquor wholesalers
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A. Every wholesaler of cider or malt liquors purchasing cider or malt liquors for resale within the state shall pay the tax under this chapter on all such liquors so purchased and add the amount of the tax to the sales price. B. The wholesaler shall pay the tax to the department …
A.R.S. § 42-3354 Return and payment by spirituous or vinous liquor wholesalers
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A. Every wholesaler of spirituous liquors selling spirituous liquors within the state shall pay the tax under this chapter on all such liquor sold within the state and add the amount of the tax to the sales price. B. Every wholesaler of vinous liquors selling vinous liquors other…
A.R.S. § 42-3355 Return and payment by farm wineries, manufacturers, direct shipment licensees, microbreweries and craft distillers
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A. A farm winery selling vinous liquor at retail or to a retail licensee pursuant to title 4, chapter 2 that is manufactured or produced on the premises, a producer of vinous liquor that sells at retail pursuant to section 4-243.02 or a direct shipment licensee that sells pursuan…
A.R.S. § 42-3356 Bonds required of farm wineries and direct shipment licensees; exemption
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A. Every farm winery that makes deliveries pursuant to section 4-205.04, subsection C, paragraph 7 or 9 or direct shipment licensee that makes deliveries pursuant to section 4-203.04 shall file with the department, in a form prescribed by the department, a bond or bonds, duly exe…
A.R.S. § 42-3371 Levy and collection of tax on cigarettes, cigars and other forms of tobacco
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(Caution: 1998 Prop. 105 applies) In addition to all other taxes, there is levied and shall be collected by the department in the manner provided by this chapter, on all cigarettes, cigars, smoking tobacco, plug tobacco, snuff and other forms of tobacco the following tax: 1. On e…
A.R.S. § 42-3372 Disposition of monies
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(Caution: 1998 Prop. 105 applies) Notwithstanding section 42-3102, the department shall deposit, pursuant to sections 35-146 and 35-147, monies levied and collected pursuant to this article in the early childhood development and education fund established by section 8-1181 for us…
A.R.S. § 42-3401 Tobacco distributor licenses; application; conditions; revocations and cancellations
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B. For the purposes of subsection A of this section, an applicant with a controlling interest in more than one business engaged in activities as a distributor shall apply for a single license encompassing all such businesses and list each place of business in its application. For…
A.R.S. § 42-3402 Contraband tobacco products
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Notwithstanding any other law to the contrary, tobacco products that are ordered, purchased or transported in violation of section 13-3711, 36-798.06 or 42-3461 or section 44-7111, section 3(c) or any other statute under which the tobacco products are subject to seizure and destr…
A.R.S. § 42-3403 Tobacco product retailers; vehicle as place of business prohibited; exceptions
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A. A retailer may sell any tobacco product that is not otherwise prohibited by federal or state law from sale for resale, but a retailer may not acquire or possess unstamped cigarettes, or other tobacco products or cigarettes on which taxes levied under this chapter have not been…
A.R.S. § 42-3404 Exemptions and exclusions of certain tobacco products from tobacco taxes
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A. The taxes imposed by this chapter do not apply to: 1. Tobacco products that are sold to the United States army, air force, navy, marine corps or coast guard exchanges and commissaries and navy or coast guard ships' stores. 2. Tobacco products that are sold to the United States…
A.R.S. § 42-3405 Tobacco manufacturers, importers, distributors and retailers; recordkeeping and invoicing requirements; retention period
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A. Except for retail transactions with consumers, each manufacturer, importer and distributor of tobacco products shall maintain copies of invoices or equivalent documentation for each facility and for each transaction that involves the sale, purchase, transfer, consignment or re…
A.R.S. § 42-3406 Refunds and rebates of tobacco taxes; supporting documentation; distributor's burden of proof
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A. Except as otherwise provided under subsection B of this section or by the department for a refund or redemption under section 42-3008 or 42-3460, a distributor requesting any refund or rebate of taxes paid on tobacco products pursuant to article 2, 6, 7 or 9 of this chapter sh…
A.R.S. § 42-3451 Acquisition and possession of cigarettes and roll-your-own tobacco; definitions
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A. A manufacturer or importer may sell or distribute cigarettes or roll-your-own tobacco to a person who is located or doing business in this state, including Indian reservations located in this state, only if the person is an importer or licensed distributor or the manufacturer …
A.R.S. § 42-3452 Payment of tax required to sell, distribute or transfer tobacco products
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A. Except as provided in subsection B of this section, a person may not: 1. Sell, offer for sale, distribute or transfer any tobacco products on which a tax is imposed by this chapter to any person within this state unless at the time of the sale, distribution or transfer the tax…
A.R.S. § 42-3453 Presumption of tax on unstamped cigarettes
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Except as otherwise provided in section 42-1127, subsection F and section 42-3452, subsection B, for the purpose of proper administration and to prevent evasion of the taxes imposed by this chapter, until the contrary is established, it is presumed that cigarettes that are sold, …
A.R.S. § 42-3454 Transport of unstamped cigarettes and untaxed roll-your-own tobacco prohibited; exceptions
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A. A person may not hold, store or transport unstamped cigarettes or untaxed roll-your-own tobacco for sale or distribution in this state in any vehicle pursuant to section 36-798.06. B. This section does not apply to either of the following: 1. A vehicle that is owned, operated …
A.R.S. § 42-3455 Cigarette tax stamps; description and characteristics; use by licensed distributors; affixation standards; metering
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A. The department shall prescribe by rule or procedure the method and manner in which tax stamps are to be affixed to cigarettes and may provide for the cancellation of stamps. In addition to any specifications provided under this article, the stamps shall also meet the requireme…
A.R.S. § 42-3456 Tax stamps as indicia of taxes paid; exception; definitions
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A. Except as otherwise provided in this chapter, all cigarettes on which a tax is imposed by this chapter shall be placed in packages or containers, and on each package or container shall be affixed an official stamp described in section 42-3455. An affixed stamp shall be evidenc…
A.R.S. § 42-3457 Unstamped cigarettes
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B. Except for a licensed manufacturer, importer or distributor and if lawful under section 36-798.06, a person who ships unstamped cigarette packages in or into this state shall first file with the department a notice of shipment. This subsection does not apply to any common or c…
A.R.S. § 42-3458 Discount purchases of tax stamps; refund, redemption and rebate amounts
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A. The official stamps to be affixed to packages of cigarettes shall be obtainable from the department by each licensed distributor by purchase or as may be acquired pursuant to department procedures: 1. On or before September 30, 2014, at the following discount rates: (a) Ninety…
A.R.S. § 42-3459 Secured cigarette stamp purchases on credit; cancellation of credit privileges; collection action; bonding requirement; waiver
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A. Subject to subsections B and C of this section, and except as provided in subsection D of this section, a licensed distributor who furnishes a bond of a surety company qualified to do business in this state, in an amount equal to two times the amount of the distributor's curre…
A.R.S. § 42-3460 Redemption of unused or spoiled tax stamps and meter registration; definitions
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A. The department shall redeem unused or spoiled Arizona tax stamps that a distributor presents for redemption if those stamps are unaffixed and purchased within two years of the date of the request for redemption and shall pay for them from monies collected under this chapter. B…
A.R.S. § 42-3461 Unlawful use of stamps; classification; definition
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A. A person may not affix a tax stamp to a package of cigarettes if the package: 1. Differs from the requirements of the federal cigarette labeling and advertising act (P.L. 89-92; 79 Stat. 282; 15 United States Code section 1331) relating to label warnings or other information o…
A.R.S. § 42-3462 Cigarette and roll-your-own tobacco; filing requirements; definition
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A. Each distributor shall file a return in a form prescribed by the department for each place of business on or before the twentieth day of the month next succeeding the month for which the return is filed. The return shall contain all of the following: 1. The brand names and qua…
A.R.S. § 42-3501 Return and payment by distributors of tobacco products other than cigarettes
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A. Except for tobacco products described in section 42-3402, every distributor of tobacco products other than cigarettes shall pay the tax imposed by this chapter on all those products received within the state and shall add the amount of the tax to the sales price. B. The distri…
A.R.S. § 42-3502 Transport of untaxed other tobacco products prohibited; exceptions; definition
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A. Except as allowed in section 42-3403, a person may not hold, store or transport untaxed other tobacco products for sale or distribution in this state in any vehicle. B. This section does not apply to either of the following: 1. A vehicle that is owned, operated or contracted b…
A.R.S. § 42-3503 Acquisition and possession of untaxed other tobacco products; definitions
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A. A person, other than a manufacturer or an importer shipping into the state, shall be licensed as a distributor if the person acquires or possesses untaxed other tobacco products for sale, barter or exchange or for any other purpose besides or in addition to personal use or con…
A.R.S. § 42-5001 Definitions
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In this article and article 2 of this chapter, unless the context otherwise requires: 1. "Business" includes all activities or acts, personal or corporate, that are engaged in or caused to be engaged in with the object of gain, benefit or advantage, either directly or indirectly,…
A.R.S. § 42-5002 Exclusions from gross income, receipts or proceeds
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A. For the purpose of this article the total amount of gross income, gross receipts or gross proceeds of sales shall be deemed to be the amount received, exclusive of: 1. The taxes imposed by this chapter and chapter 6, article 3 of this title, sales or transaction privilege taxe…
A.R.S. § 42-5003 Administration and enforcement of article; employees; bonds
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A. The administration of this article is vested in and shall be exercised by the department of revenue according to chapter 1, articles 1 and 3 of this title and this article, and all payments required by this article shall be made to the department. B. The enforcement of this ar…
A.R.S. § 42-5004 Department records
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A. The department shall keep records and accounts showing separately the taxes collected under each of the classifications and amounts collected from businesses engaged in within each county as prescribed in this article and article 2 of this chapter. Each month the department of…
A.R.S. § 42-5005 Transaction privilege tax and municipal privilege tax licenses; fees; renewal; revocation; violation; classification
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A. Every person who receives gross proceeds of sales or gross income on which a transaction privilege tax is imposed by this article and who desires to engage or continue in business shall apply to the department for an annual transaction privilege tax license accompanied by a fe…
A.R.S. § 42-5006 Taxpayer bonds; out of state licensed contractors and manufactured building dealers
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A. Notwithstanding section 42-1102, the department shall require a surety bond for each taxpayer who is required to be licensed under title 32, chapter 10 or who is regulated under title 41, chapter 37, article 3, if the taxpayer's principal place of business is outside this stat…
A.R.S. § 42-5007 Taxpayer security; out-of-state prime contractors; definition
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A. In lieu of the bond required under section 42-1102 or 42-5006, a person who is in the construction business, who does not have a principal place of business in this state and who enters into a prime construction contract to be performed in this state, at the time the contract …
A.R.S. § 42-5008 Levy of tax; purposes; distribution
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A. There is levied and there shall be collected by the department, for the purpose of raising public money, privilege taxes measured by the amount or volume of business transacted by persons on account of their business activities, and in the amounts to be determined by the appli…
A.R.S. § 42-5008.01 Liability for amounts equal to retail transaction privilege tax due
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A. A person that is either a prime contractor subject to tax under section 42-5075 or a subcontractor working under the control of such a prime contractor, that purchases tangible personal property, the purchase price of which was excluded from the tax base under the retail class…
A.R.S. § 42-5009 Certificates establishing deductions; liability for making false certificate; tax exclusion; definitions
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A. A person who conducts any business classified under article 2 of this chapter may establish entitlement to the allowable deductions from the tax base of that business by both: 1. Marking the invoice for the transaction to indicate that the gross proceeds of sales or gross inco…
A.R.S. § 42-5010 Rates; distribution base
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(Caution: 1998 Prop. 105 applies) A. The tax imposed by this article is levied and shall be collected at the following rates: 1. Five percent of the tax base as computed for the business of every person engaging or continuing in this state in the following business classification…
A.R.S. § 42-5010.01 Transaction privilege tax; additional rate increment
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A. From and after June 30, 2021 through June 30, 2041, in addition to the rates prescribed by section 42-5010, subsection A, an additional rate increment is imposed and shall be collected. The additional tax rate increment is levied at the rate of six-tenths of one percent of the…