Title 42, Taxation

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. 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…

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.

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. The department may collect and administer any tribal excise tax on tobacco products imposed by an Indian tribe, as described in section 42-3302, subsection C on entering into an intergovernmental agreement or contract with the tribe to provide a uniform or coordinated method o…

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. 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. 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. 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. 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. 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…

(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…

(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. Every person acquiring or possessing for the purpose of making the initial sale or distribution in this state of any tobacco products on which a tax is imposed by this chapter shall obtain from the department a license to sell tobacco products. The application for the license …

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. 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. 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. 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. 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. 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. 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…

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. 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. 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. 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. A person shall not possess an unstamped cigarette package unless the person is shipping or transporting unstamped cigarettes pursuant to subsection B of this section, is a licensed manufacturer or importer or is a licensed distributor who receives unstamped cigarette packages …

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. 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. 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. 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. 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. 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. 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. 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…

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. 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. 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. 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. 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. 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. 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. 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. 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. 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…

(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. 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…