Form TPT-Deduction Codes Fillable TPT-1 Deduction Codes

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42 5061(M)(1) states that: 42 5063(D) computer data center equipment qualification period and qualified General Information ) manufacturing processing fabricating job printing refining Metallurgical operations includes leaching milling precipitating qualifying health care organization qualifying hospital sales of motor Vehicles to nonresidents provides tax rate Solar daylighting means a device that is specifically designed to capture Solar energy device means a system or series of mechanisms designed (= Gross receipts Statutory Deductions 35%) (10) (11) (12) and (13): (14) provides a general transaction privilege tax deduction under the (A A C ) or tax rulings or tax procedures issued by the Arizona Department (A A C ) rule R15 5 1502(C) states that: Gross income from the lease of tangible (a) (b) or (c) (a) A person holding a federal certificate of public convenience and (a) A qualifying hospital as defined in section 42 5001 (a) Incorporated or fabricated by the person into any real property (a) Operating a natural or artificial gas pipeline and used or consumed (a) Printed or photographic materials beginning August 7 1985 (a) The attributable amount shall not exceed the value of the (A)(10) Insulin insulin syringes and glucose test strips (A)(11) Prescription eyeglasses or contact lenses (A)(12) Hearing aids as defined in section 36 1901 (A)(13) Durable medical equipment which has a centers for medicare and (A)(9) Prosthetic appliances as defined in section 23 501 prescribed or (b) A qualifying health care organization as defined in section 42 5001 (b) Any foreign government (b) Converting natural gas into liquefied natural gas and used or (b) Electronic or digital media materials beginning July 17 1994 (b) The attributable amount is equal to the total amount of (b) Used in environmental response or remediation activities under (c) A qualifying health care organization as defined in section 42 5001 (c) Development fees means fees imposed to offset capital costs of (c) Persons who are not residents of this state and who will not use (Class 015) for: (e) A nonprofit charitable organization that has qualified under section (F) are not subject to tax (Format Order same as on Form TPT 1 Page 2) (P L 95 627; 92 Stat 3603; P L 99 661 section 4302; 42 United States (Purchasers are not allowed to claim TPT deductions ) (See A r S 42 5061 exemptions) (TPT: 50% deduction; USE TAX: 100% deduction) [A R S 42 5061(A)(17)above] [A R S 42 5061(A)(25)(e) above] [A R S 42 5061(A)(27)above] [A R S 42 5061(A)(33)above] [A R S 42 5061(A)(34)above] [A R S 42 5061(A)(42)above] [A R S 42 5061(A)(8) above] [A R S 42 5061(B)(1) above] [A R S 42 5061(B)(14)above] [A R S 42 5061(B)(2) above] [A R S 42 5061(B)(3) above] [A R S 42 5061(B)(4)above] [A R S 42 5061(B)(6) above] [arizona transaction Privilege tax Ruling tPR 93 28 Taxation under the prime [f]or the purpose of this article the total amount of gross income gross [The jet fuel excise tax is reported under Classes 49 and 56 The jet fuel use tax 1 An individual who is not a resident for Arizona income tax purposes; 1 Drug means an article that according to federal or state law is: 1 of this chapter and if the nonresident has secured a special ninety 1 Prescription drugs including those used in the 1 Qualifying hospitals shall attach to their annual exemption request 1 Such a statement or certificate shall be maintained as part of the 1 Suitable records for substantiating the receipt of an order from outof state 1 The gross receipts from the transaction on which the bad debt deduction 1 The order is received from a location outside of Arizona; and 1 The surrounding circumstances indicate that the debt is uncollectible; 1 The tax liability is paid on the full sales price of the tangible personal 1 The vendor ships or delivers the tangible personal property out of 1) A R S 42 5061(A)(28)(a) provides a transaction privilege tax 10 Prescription drug means a legend drug or a drug that according to 11 1102 or title 48 regardless of the jurisdiction to which the fees are 11 Prescription eyeglasses includes frames and other component 11 Prescription eyeglasses includes frames and other component parts 12 Prosthetic appliance means an artificial device that fully or 12 Prosthetic appliance means an artificial device that fully or partially 2 A contract or other financial obligation is sold to a third party as a 2 An entity which has no business location or business nexus in Arizona 2 Drug on a prescription means prescription drug 2 Legal action to enforce payment has not or in all probability would not 2 Medical oxygen pursuant to A R S 42 5061(A)(8); 2 Qualifying health care organizations shall attach to their exemption 2 Suitable records for substantiating out of state shipments include: 2 The debt arose from a debtor creditor relationship based upon a valid 2 The retailer ships or delivers the tangible personal property to a 2 The tangible personal property is not used in Arizona 2 The vendor may use the exemption certificate prescribed by the 2) A R S 42 5061(U) provides a transaction privilege tax deduction 25 Tangible personal property sold to: 25 Tangible personal property sold to: 27 Tangible personal property sold to a person that is subject to tax 3 All or part of the debt is worthless 3 Food means an article used for food or drink for humans or animals 3 For purposes of the bad debt deduction in situations of default on 3 Insulin insulin syringes and glucose strips whether or not prescribed; 3 Rehabilitation programs for mentally or physically handicapped 3) Separate from the above two statutory deductions specifically 4 Hearing aid means any wearable device designed as a remedy 4 Hearing aid means any wearable device designed as a remedy or to 4 Prosthetic appliances prescribed or recommended by a statutorilyauthorized 4 Qualifying community health centers shall attach to their exemption 5 Durable medical equipment pursuant to A R S 42 5061(A)(13); 5 Legend drug means a drug that 21 U S C 353(b)(4)(A) requires to 501(c)(3) of the internal revenue code and that regularly serves meals to 6 article 3 of this title [county excise taxes] sales or transaction privilege 6 Nonprescription product 6 Prescription eyeglasses and contact lenses; and 7 8 13 14 15 17 or 29 can withstand repeated use is primarily and 7 Hearing aids Batteries and cords are subject to tax 7 Over the counter 8 Prescriber means a member of the medical dental or veterinary 9 Prescription means an order for a drug issued in any form 958) or food instruments issued under section 17 of the child nutrition act a a C rule R15 5 120 exempt sales of machinery or equipment a a C rule R15 5 156 sales of Prescription Drugs and a a C rule R15 5 156 sales of Prescription Drugs and Prosthetic A A C rule R15 5 170 addresses a transaction privilege tax deduction under the a a C rule R15 5 170 interstate and Foreign transactions a business includes all income derived from charges for labor and all other income a copy of their current license issued by the Department of Health a credit for state taxes paid in Arizona A R S 42 5061(U) stipulates: a flat price and does not separately charge the transaction privilege tax the tax A For purposes of this rule a warranty or service provision means A For purposes of this rule nonresident means: A Gross receipts from sales of tangible personal property made in A Gross receipts from the sale of tangible personal property to A In this Section: a Internal delivery orders supported by receipts of expenses A Machinery or equipment used in manufacturing or processing includes a manufacturer s or vendor s warranty provision which automatically A motor vehicle and any repair and replacement parts and tangible personal A nonresident of this state if the purchaser s state of residence does not A of this section applies the person s books shall be kept so as to show A please see the Form TPT 1 Instructions a prescription regardless of whether purchased on the advice or a private recreational establishment for purposes other than memberships A Purchases of tangible personal property from a retailer for resale in the ordinary a Qualifying Community Health Center; or Rehabilitation Programs for Mentally or A R S 28 5851 through 28 5867] and who is engaged in the business of a R s 42 5001 (www azleg state az us) Definitions provides a definition for a a R s 42 5001 Definitions (www azleg state az us) provides a definition for a A R S 42 5001(14) provides a definition for solar daylighting as referenced in a R s 42 5001(15) provides a definition for solar energy device: A R S 42 5002 Exclusions from gross income receipts or proceeds allows for a a R s 42 5061 Retail classification: A R S 42 5061(A)(14) provides a transaction privilege tax deduction under the A R S 42 5061(A)(16) provides a transaction privilege tax deduction under the A R S 42 5061(A)(17) provides a transaction privilege tax deduction under the A R S 42 5061(A)(2) provides a transaction privilege tax deduction under the A R S 42 5061(A)(20) provides a transaction privilege tax deduction under the A R S 42 5061(A)(22) provides a transaction privilege tax deduction under the A R S 42 5061(A)(23) excludes income derived from sales of tangible personal A R S 42 5061(A)(24) provides a transaction privilege tax deduction under the A R S 42 5061(A)(25)(a) provides a transaction privilege tax deduction under the A R S 42 5061(A)(25)(b) and (c) provide transaction privilege tax deductions under A R S 42 5061(A)(25)(e) provides a transaction privilege tax deduction under the A R S 42 5061(A)(27) provides a transaction privilege tax deduction under the A R S 42 5061(A)(28)(b) provides a transaction privilege tax deduction under the A R S 42 5061(A)(3) provides a transaction privilege tax deduction under the A R S 42 5061(A)(33) provides a transaction privilege tax deduction under the A R S 42 5061(A)(34) provides a transaction privilege tax deduction under the A R S 42 5061(A)(35) provides a transaction privilege tax deduction under the A R S 42 5061(A)(36) provides a transaction privilege tax deduction under the A R S 42 5061(A)(38) provides a transaction privilege tax deduction under the A R S 42 5061(A)(39) provides a transaction privilege tax deduction under the A R S 42 5061(A)(41) provides a transaction privilege tax deduction under the A R S 42 5061(A)(42) provides a transaction privilege tax deduction under the A R S 42 5061(A)(43) provides a transaction privilege tax deduction under the A R S 42 5061(A)(44) provides a transaction privilege tax deduction under the A R S 42 5061(A)(45) provides a transaction privilege tax deduction under the A R S 42 5061(A)(46) provides a transaction privilege tax deduction under the A R S 42 5061(A)(48) provides a transaction privilege tax deduction under the A R S 42 5061(A)(49) provides a transaction privilege tax deduction under the A R S 42 5061(A)(59) provides a transaction privilege tax deduction under the A R S 42 5061(A)(8) provides a transaction privilege tax deduction under the A R S 42 5061(A)(9) (10) (11) (12) and (13) respectively provide transaction A R S 42 5061(B)(1) provides a transaction privilege tax deduction under the A R S 42 5061(B)(14) provides a transaction privilege tax deduction under the A R S 42 5061(B)(2) provides a transaction privilege tax deduction under the A R S 42 5061(B)(21) provides a transaction privilege tax deduction under the A R S 42 5061(B)(3) provides a transaction privilege tax deduction under the A R S 42 5061(B)(4) provides a transaction privilege tax deduction under the A R S 42 5061(B)(6) provides a transaction privilege tax deduction under the A R S 42 5061(B)(7) provides a transaction privilege tax deduction under the A R S 42 5061(G) stipulates recordkeeping requirements regarding retail A R S 42 5061(J)(1) in pertinent part provides a transaction privilege tax A R S 42 5061(J)(2) in pertinent part provides a transaction privilege tax A R S 42 5061(K) provides a transaction privilege tax deduction under the retail A R S 42 5061(M)(1) provides a transaction privilege tax deduction under the A R S 42 5061(N) provides a transaction privilege tax deduction under the retail A R S 42 5061(N) states: a R s 42 5062 Transporting classification: a R s 42 5063 Utilities classification: a R s 42 5064 Telecommunications classification: A R S 42 5064(A)(2) Telecommunications classification states in pertinent part: a R s 42 5065 Publication classification: a R s 42 5066 Job Printing classification: A R S 42 5066(B)(4) provides a transaction privilege tax deduction under the job a R s 42 5067 Pipeline classification: a R s 42 5068 Private Car Line classification: a R s 42 5069 Commercial Lease classification: a R s 42 5070 Transient Lodging classification: a R s 42 5071 Personal Property Rental classification: A R S 42 5071(B)(2) in pertinent part provides a transaction privilege tax A R S 42 5071(B)(2) in pertinent part provides a transaction privilege tax A R S 42 5071(B)(2) in pertinent part provides a transaction privilege tax A R S 42 5071(B)(2) in pertinent part provides a transaction privilege tax A R S 42 5071(B)(2) in pertinent part provides a transaction privilege tax A R S 42 5071(B)(2)(a) in pertinent part provides transaction privilege tax A R S 42 5071(B)(2)(b)(ii) in pertinent part provides a transaction privilege A R S 42 5071(B)(2)(c) in pertinent part provides a transaction privilege tax A R S 42 5071(B)(3) in pertinent part provides a transaction privilege tax A R S 42 5071(B)(5) exempts a motor vehicle dealer from taxation under the A R S 42 5071(B)(5) provides a transaction privilege tax deduction under the a R s 42 5072 Mining classification: a R s 42 5073 Amusement classification: a R s 42 5073(b)(1) (www azleg state az us) provides a transaction privilege a R s 42 5074 Restaurant classification: A R S 42 5074(B)(10) provides a transaction privilege tax deduction under the A R S 42 5074(B)(9) provides an identical transaction privilege tax deduction A R S 42 5074(C) provides a virtually identical transaction privilege tax deduction a R s 42 5075 Prime Contracting classification: A R S 42 5075(B) has the effect of providing for a 35% deduction from the gross A R S 42 5075(B) provides a listing of amounts that may be deducted from the A R S 42 5075(B)(1) provides a transaction privilege tax deduction from the gross A R S 42 5075(B)(18) provides a transaction privilege tax deduction from the A R S 42 5075(B)(19) provides a transaction privilege tax deduction under the A R S 42 5075(B)(9) provides a transaction privilege tax deduction under the A R S 42 5075(B)(9) provides a transaction privilege tax deduction under the A R S 42 5075(B)(9) provides a transaction privilege tax deduction under the A R S 42 5075(B)(9) provides a transaction privilege tax deduction under the A R S 42 5075(K) specifies that a transaction privilege tax deduction under a R s 42 5076 Owner Builder Sales classification: a R s 42 5159 Use Tax Exemptions: A R S 42 5159(A)(12) provides an identical exemption from the arizona use tax A R S 42 5159(A)(13)(a) (b) and (c) provide exemptions from the Arizona use A R S 42 5159(A)(13)(d) and (e) provide exemptions from the arizona use tax A R S 42 5159(A)(13)(g) provides an exemption from the arizona use tax that is A R S 42 5159(A)(13)(j) provides an exemption from the arizona use tax that is A R S 42 5159(A)(13)(k) provides an exemption from the Arizona use tax that A R S 42 5159(A)(16) provides an exemption from the arizona use tax that is A R S 42 5159(A)(17) (19) (18) (20) and (21) respectively provide exemptions A R S 42 5159(A)(21) A R S 42 5159(A)(23) provides an identical exemption from the arizona use tax A R S 42 5159(A)(28) provides an exemption from the arizona use tax that is A R S 42 5159(A)(31) provides an identical exemption from the arizona use tax A R S 42 5159(A)(34) provides an exemption from the arizona use tax that is A R S 42 5159(A)(35) provides an identical exemption from the arizona use tax A R S 42 5159(A)(36) provides a virtually identical exemption from the arizona A R S 42 5159(A)(37) provides an exemption from the Arizona use tax that is A R S 42 5159(A)(43) provides a virtually identical exemption from the arizona A R S 42 5159(A)(45) provides an arizona use tax exemption for: A R S 42 5159(A)(5) provides a comparable exemption from the arizona use tax A R S 42 5159(A)(54) provides an identical exemption under the Arizona use tax A R S 42 5159(A)(7) provides an identical exemption from the arizona use tax A R S 42 5159(A)(8) provides an identical exemption from the arizona use tax A R S 42 5159(A)(9) provides an exemption from the arizona use tax that is A R S 42 5159(B)(1) provides an exemption from the arizona use tax that is A R S 42 5159(B)(14) provides an exemption from the arizona use tax that is A R S 42 5159(B)(2) provides an exemption from the arizona use tax that is A R S 42 5159(B)(21) provides an exemption from the arizona use tax that A R S 42 5159(B)(3) provides an exemption from the arizona use tax that is A R S 42 5159(B)(4) provides an exemption from the arizona use tax that is A R S 42 5159(B)(6) provides an exemption from the arizona use tax that is A R S 42 5159(B)(7) provides a similar (but not identical) exemption from arizona a Recognized in the official United States Pharmacopeia official a resident of Arizona and that the property purchased is for use outside a state that imposes a lower state tax rate than Arizona s 6 6% (5 6% after a subcontractor working under the control of a prime contractor that is A The deduction of a bad debt shall be allowed from gross receipts if the following a Upon a written prescription of a prescriber for the drug; accessories and earmolds accessories and related equipment sold to: accessory tangible personal property to a school district or charter school activities such as packaging storage or transportation but does not affect actual direct costs of providing architectural or engineering services that actual statutory text of the deduction or exemption at issue as well as any addition to selling tangible personal property at retail additional clarification about health or fitness establishments or private recreational Additionally arizona transaction Privilege tax Procedure tPP 93 1 addresses the Additionally arizona transaction Privilege tax Ruling tPR 93 47 addresses the addresses the exemption for sales of warranty or service contracts associated with addressing sales of motor vehicles to nonresidents A R S 42 5061(A) administrative guidance provided by rules in the Arizona Administrative Code ADOR 10872 (9/13) ADOR 10872 (9/13) ADOR 10872 (9/13) ADOR 10872 (9/13) ADOR 10872 (9/13) Page 1 ADOR 10872 (9/13) Page 11 ADOR 10872 (9/13) Page 12 ADOR 10872 (9/13) Page 13 ADOR 10872 (9/13) Page 14 ADOR 10872 (9/13) Page 16 ADOR 10872 (9/13) Page 17 ADOR 10872 (9/13) Page 18 ADOR 10872 (9/13) Page 19 ADOR 10872 (9/13) Page 2 ADOR 10872 (9/13) Page 21 ADOR 10872 (9/13) Page 22 ADOR 10872 (9/13) Page 23 ADOR 10872 (9/13) Page 24 ADOR 10872 (9/13) Page 27 ADOR 10872 (9/13) Page 28 ADOR 10872 (9/13) Page 29 ADOR 10872 (9/13) Page 3 ADOR 10872 (9/13) Page 31 ADOR 10872 (9/13) Page 32 ADOR 10872 (9/13) Page 33 ADOR 10872 (9/13) Page 34 ADOR 10872 (9/13) Page 36 ADOR 10872 (9/13) Page 37 ADOR 10872 (9/13) Page 4 ADOR 10872 (9/13) Page 5 ADOR 10872 (9/13) Page 6 ADOR 10872 (9/13) Page 7 ADOR 10872 (9/13) Page 8 ADOR 10872 (9/13) Page 9 advance of sales by a solar retailer or prime contractor agencies by a manufacturer modifier assembler or repairer agent of the owner operator or qualified colocation tenant during the agricultural horticultural viticultural or floricultural crops in this state AGrICULTUrE businesses AIrCrAFT navigational and communication instruments Aircraft navigational and communication instruments and other AIRCRAFT navigational and communication instruments sold to commercial airlines or foreign governments 508 allow a corresponding use tax exemption to the tax imposed by article allow the Department upon inspection to identify property as exempt always included in the GROSS AMOUNT (Column D) that is reported on Form TPT 1 amount of state and county tax that applies to sales to nonresidents from amount so collected to the department Amounts received by a motor vehicle dealer for the first month of a lease an ingredient or component part of any manufactured fabricated or and as delineated in R15 5 2214 for the statutorily required period of and control equipment used at transmission substation sites constitute and Distribution (www azsos gov) provides additional information about the and enforceable obligation to pay a fixed or determinable sum of money; and for no extra charge applies to the tangible personal property when and metallurgical as used in this paragraph refer to and include and minerals and other additives to business and qualifying community health centers shall annually submit to the and records relating to sales of solar energy devices available to the and redirect the visible portion of the solar beam while controlling the and shipped or delivered out of state by the seller for use and the charge for the warranty or service contract is stated separately and those medical supplies or appliances not provided for under subsection (B) are Any amount of the gross proceeds of sales or gross income attributable any deduction for such chemicals that is otherwise provided by this section any other information requested by the Department to make a proper appliances applicable to all transaction privilege tax business classifications: applicable to qualifying health care organizations and other entities and addresses applied research in the sciences and engineering and designing developing apply to the sale of a motor vehicle to nonresidents from certain states are engaged in feeding livestock or poultry commercially For the are furnished without additional charge to and intended to be consumed are incorporated in a contract is not subject to tax under this section are paid by a prime contractor or subcontractor For the purposes of this Arizona Administrative Code (A A C ) rule R15 5 105 Services in Connection with Arizona Administrative Code (A A C ) rule R15 5 1102 Printer s Sale of Printing Arizona Administrative Code (A A C ) rule R15 5 120 addresses some of the Arizona Administrative Code (A A C ) rule R15 5 128 Electric Power Transmission Arizona Administrative Code (A A C ) rule R15 5 128 Exempt Sales to Health Arizona Administrative Code (A A C ) rule R15 5 137 Warranty or Service Contracts Arizona Administrative Code (A A C ) rule R15 5 156 addresses sales of prescription Arizona Administrative Code (A A C ) rule R15 5 156 in pertinent part addresses Arizona Administrative Code (A A C ) rule R15 5 175 Sales to Nonresidents Arizona Administrative Code (A A C ) rule R15 5 183 Exempt Sales to Health Arizona Administrative Code (A A C ) rule R15 5 2011 addresses a deduction for a Arizona Administrative Code (A A C ) rule R15 5 2309 Exemptions Purchases for Arizona Administrative Code (A A C ) rule R15 5 406 (www azsos gov) provides Arizona Administrative Code (A A C ) rules R15 5 2210 Collection of Arizona Department of Revenue and are reported on Form TPT 1 the codes arizona transaction Privilege tax Procedure tPP 00 1 Procedure for Factoring arizona transaction Privilege tax Procedure tPP 99 5 Procedure for Recognition arizona transaction Privilege tax Ruling tPR 00 4 Exemption for sales or leases arizona transaction Privilege tax Ruling tPR 02 1 addresses taxability issues arizona transaction Privilege tax Ruling tPR 02 2 addresses issues regarding the arizona transaction Privilege tax Ruling tPR 03 2 references these exemptions arizona transaction Privilege tax Ruling tPR 03 5 explains this exemption in detail arizona transaction Privilege tax Ruling tPR 06 2 addresses and provides arizona transaction Privilege tax Ruling tPR 92 5 Warranty or service contracts arizona transaction Privilege tax Ruling tPR 93 12 addresses this specific arizona transaction Privilege tax Ruling tPR 93 31 Exemption under the Retail arizona transaction Privilege tax Ruling tPR 93 43 explains this exemption in arizona transaction Privilege tax Ruling tPR 95 18 addresses the issue of [w]hich arizona transaction Privilege tax Ruling tPR 99 1 Application of the transaction arizona use tax may not be factored Arizona Use Tax: artificial lighting as a solar energy retailer By registering the retailer acknowledges that as defined in section 41 1514 02 and directly used or consumed in the as taxable gross receipts when received assembler or repairer if end product sold to U S GOVT associated with Complimentary food and drink provided by restaurants or lodging at retail addresses the exemption provided by A R S 42 5061(A)(2) at that establishment for participatory purposes for twenty eight days attachments accessories and earmolds available to the department for examination B A debt shall be considered worthless if: b Common carrier s receipt or bill of lading; B Gross receipts from sales of the following kinds of tangible personal B Gross receipts from sales of the following kinds of tangible personal property are B Gross receipts from the sale of repair or replacement parts for exempt B Gross receipts from the sale of tangible personal property to a B Gross receipts from the sale of warranty or service contracts shall B In meeting the above requirements if delivery is made by the retailer b Intended for use in the diagnosis cure mitigation treatment or B Purchases of tangible personal property from a retailer for subsequent leasing or B The Department may upon review of the written request and b Upon an oral prescription by the prescriber for the drug that federal BAD DEBT deduction BAD DEBT deduction 558 bad debt: be deducted A R S 42 5002 states in pertinent part that: be leased if they could be purchased exempt from tax under the retail be purchased by the final consumer of the drug or article without be submitted at least 30 days prior to the first day of the exemption period bear the symbol Rx only before dispensing becoming a part of aircraft to be used to transport persons property beginning on the first day of the month following the issue date of the begins before January 1 2010 To qualify for this deduction the prime begins through the completion of the finished end product processing beings for food drink or condiment except alcoholic beverages which bookbinding box on Form TPT 1 page 2 You may either click on the CODE NUMBER building or other structure project development or improvement are not buildings and that the prime contractor or dealership is liable for the tax business Business Classifications: business under the prime contracting classification (Class 015) for a contract to businesses See A r S 42 5061(A)(39) but primarily addresses related issues regarding the lease of vehicles by oral order that is reduced promptly to writing and then filed by a By registering the contractor acknowledges that it will make its books by the Arizona commerce authority under section 41 1519 To qualify for by the Arizona State Lottery Commission by the person who delivers the property; by the prescriber for the drug either in the original prescription or by the purchaser s state of residence on the nonexempt sale or use of by the seller see tPP 08 1 and use Code 531 by the transient during the transient s occupancy C A warranty or service provision shall not be considered a warranty c By refilling a written or oral prescription if refilling is authorized C Gross receipts from the sale of component and repair parts for any C Gross receipts from the sale of component and repair parts for any tangible C In establishing the exempt sale of machinery or equipment the seller c Not food and is intended to affect the structure or any function of c Parcel post receipt; C Qualifying hospitals qualifying health care organizations C Suitable records shall be kept to substantiate the deduction for a sale C The bad debt deduction shall be computed by subtracting the amounts received on C To substantiate the exemption for a sale to a nonresident temporarily calendar or fiscal years from the date the first paper manufacturing carrier permit for air transportation for use as or in conjunction with or carrier systems cash rebate that is assigned by the purchaser to the motor vehicle dealer A R S certificate of public convenience and necessity or foreign air carrier permit certification approved by the department chapter chapter 7 8 11 13 14 15 16 17 or 29 charge to cover the tax levied by this article or which is identified as being charge to passengers for consumption in flight For the purposes of charges CHEMICALS: SALES of chemicals used in certain CHEMICALS: SALES of chemicals used in certain businesses See ARS 42 5061(A)(39) 510 chewing gum or an article used as a component of such an article cities whose city privilege and use taxes are administered and collected by the City privilege taxes county excise taxes and Native American tribal taxes may also clarification about these exemptions clarification for the exemption provided by A R S 42 5075(J) classification classification (Class 017) for 50% of the gross income derived from a sale of tangible classification (Class 017) for sales of solar energy devices by a solar energy retailer classification [A R S 42 5061(A)(25)(b) and (c) above] classification [A R S 42 5061(A)(46)above] classification [A R S 42 5061(B)(22)above] classification does not include [s]ales of internet access services to the Classification for Services rendered in addition to selling tangible personal property classification for use in such business A R S 42 5064(E) provides definitions classification Repair or replacement parts are defined as those individual Coal petroleum coke natural gas virgin fuel oil and electricity sold to a coaxial cable and other transmission media which are components of CODE 501 CODE 502 CODE 503 CODE 504 CODE 505 CODE 506 CODE 508 CODE 509 CODE 510 CODE 511 CODE 512 CODE 513 CODE 514 CODE 515 CODE 516 CODE 517 CODE 518 CODE 519 CODE 520 CODE 521 CODE 522 CODE 523 CODE 524 CODE 525 CODE 526 CODE 527 CODE 528 CODE 529 CODE 530 CODE 531 CODE 534 CODE 535 CODE 536 CODE 537 CODE 538 CODE 539 CODE 540 CODE 541 CODE 542 CODE 543 CODE 544 CODE 545 CODE 546 CODE 547 CODE 548 CODE 549 CODE 550 CODE 551 CODE 552 CODE 553 CODE 554 CODE 555 CODE 556 CODE 557 CODE 558 CODE 560 CODE 561 CODE 562 CODE 563 CODE 565 CODE 888 CODE 999 CODE listing on page 2 of Form TPT 1 but are still in use: Code section 1786) college libraries state university libraries or federal state county or colocation tenant have the same meanings prescribed in section 41 1519 colocation tenant must present to the retailer its certificate that is issued commerce commerce before beginning work under the contract commercial delivery service A printer may not deduct its gross income or CommeRCial lease Class 013: Applies to a business that leases or rents the common carrier is deemed to be the agent of the retailer for purposes community college community health centers are exempt from tax if such purchases are compensate for defective human hearing including parts attachments complete general text of the Model City Tax Code in which specific exemptions component and constituent items which together comprise exempt component part of products sold directly to the United States government computer data center Computer data center equipment purchased by the owner operator or COMPUTEr DATA CENTEr EqUIPMENT sold to a qualified COMPUTER DATA CENTER EQUIPMENT sold to a qualified owner operator or qualified colocation tenant of CONDIMENTS sold to a transient lodging business conditional or installment sales a sale with recourse means that a conditional or installment sales if: conditions apply: construction development or improvement of real property and that consumed for the sole purpose of fueling compressor equipment used contained in this listing may be used if the city privilege tax exemption is the contract A R S 42 5075(K) states: contract arizona transaction Privilege tax Ruling tPR 00 2 explains this prime contract Arizona Transaction Privilege Tax Ruling tPR 00 2 explains this prime contracting classification (Class 015) contracting classification of maintenance and warranty contracts addresses contracting contract arizona transaction Privilege tax Ruling tPR 00 2 explains contracting contract Arizona Transaction Privilege Tax Ruling tPR 00 2 explains contracting deduction in detail contracting deduction in detail contractor must obtain a letter of qualification from the department of CONTrACTOr or sub to be physically incorporated into a contractor shall register with the department as a solar energy contractor Contractors contracts ] control of DOC DPS or Sheriff s Office controlling for an amount taken as a deduction on Form TPT 1 conveyance; and copy of their Internal Revenue Code 501(c) recognition unless the COSTS of providing ArCHITECTUrAL / ENGINEErING could coupons issued under the food stamp act of 1977 (P L 95 113; 91 Stat course of the purchaser s business are not subject to use tax course of treating customarily used to serve a medical purpose is generally not useful to a D A bad debt deduction shall be taken in the month in which the conditions of d Export declaration; D If a written prescription or recommendation is required to purchase D If a written prescription or recommendation is required to purchase tangible d Intended for use as a component of any article specified in subsections D Suitable records as delineated in R15 5 170 shall be kept by the day nonresident registration permit for the vehicle as prescribed by debt deduction deduction code is not provided in this listing of all deduction codes Deduction Codes Deduction Codes Deduction Codes DEDUCTION CODES COMPLETE LISTING deduction for income derived from [s]ales of intrastate telecommunications services deduction For the purposes of this paragraph computer data center deduction from the gross income of a prime contracting business under the prime deduction from the seller s gross income for the tax charged by the seller regardless deduction the qualified business at the time of purchase must present its deduction under the personal property rental classification (Class 014) for income deduction under the personal property rental classification (Class 014) for income deduction under the personal property rental classification (Class 014) for income deduction under the personal property rental classification (Class 014) for income deduction under the personal property rental classification (Class 014) for income deduction under the personal property rental classification (Class 014) for income deduction under the retail classification (Class 017) for income derived deduction under the retail classification (Class 017) for income derived from: deductions and exemptions provided in Title 42 of the Arizona Revised DEDUCTIONS FOr SELLErS DEDuCTIONS FOR SELLERS: (Purchasers are not allowed to claim TPT deductions) Deductions for SELLERS: (Purchasers are not allowed to claim TPT deductions) Code deductions for these amounts this subsection specifies that the transaction privilege deductions under the personal property rental classification (Class 014) for income dental or veterinarian profession who is licensed by law to administer Department Department a written request for an Exemption Letter The request shall department for examination Department has previously received a copy of this recognition department of juvenile corrections or a county sheriff Department s letter that is provided to such entities: derived from [s]ales to a person in this state who has a transaction privilege tax derived from a contract to provide and install a solar energy device The derived from a lease or rental of equipment that would qualify for the above derived from a lease or rental of equipment that would qualify for the above derived from a lease or rental of equipment that would qualify for the above derived from a lease or rental of equipment that would qualify for the above derived from a lease or rental of equipment that would qualify for the above derived from a lease or rental of tangible personal property that would qualify for derived from a lease or rental of the items covered by A R S 42 5061(A)(8) that derived from a lease or rental of the items that can be leased if the items could be derived from: described by the other specific codes in this listing Code 999 is used to deduct described by this listing Code 888 is used to deduct the exempt income The descriptions for some of the statutory transaction privilege tax and use tax detail determination provide an Exemption Letter to organization meeting the development fees actually imposed development fees paid by the prime contractor or subcontractor and development of computer software that is embedded in or an integral development The real property must be the subject of the development device such as a trombe wall and not merely as a part of a normal different from that in which it was acquired and transforms it into a different product with a distinctive name character or use directly addresses this exemption directly to a destination outside the U S for use in that directly to the United States government or its departments or agencies district or charter school during school hours DME prosthetic appliances documenting sales shall provide reasonable detail to allow the Department upon drug means a drug that is subject to federal Drugs and medical oxygen including delivery hose mask or tent drugs and other items: E A bad debt deduction shall be allowed pursuant to the provisions in this rule on E Gross receipts from the sale to the final consumer of nonprescription E Gross receipts from the sale to the final consumer of nonprescription products e Receipt from a licensed broker; or electric transmission services and other services related to providing electricity gas embossing and copying: A R S 42 5066(B)(1)(a) provides a deduction for income ending before January 1 2017 the gross proceeds of sales or gross income energy Contractor arizona Form 6015 must be filed with the Department in engaged in feeding livestock or poultry commercially For the purposes of engineering services equipment or other tangible personal property is a part of the prime contracting equipment or other tangible personal property is a part of the prime contracting equipment otherwise exempt under this section to function effectively equipment required to prepare the materials for extraction and handling equipment that qualifies for exemption under A R S 42 5061(B)(1): equipment that qualifies for this exemption Equipment USE TAX exemption equipment used in producing or transmitting electrical power establishments for purposes of this exemption exchange microwave radio and other equipment sold to telecommunications business 539 exempt from tax pursuant to statutory provisions exempt machinery equipment or other tangible personal property that qualifies exempt machinery equipment or other tangible personal property that qualifies exempt machinery equipment or other tangible personal property that qualifies exempt machinery equipment or other tangible personal property that qualifies exemption exemption from the arizona use tax exemption from the Arizona use tax for: Exemption Letter or the 12 month period requested by the organization Exemption Letter unless the organization s tax exempt status changes prior exemption provided by A R S 42 5061(J)(2) A R S 42 5159(A)(4) provides an exemption under A R S 42 5159(B) when the purchase of the exempt machinery exemption under A R S 42 5159(B)(2) when the purchase of the exempt machinery exemption under A R S 42 5159(B)(4) when the purchase of the exempt machinery exemption under the retail classification if the equipment had been purchased exemption under the retail classification if the equipment had been purchased exemption under the retail classification if the equipment had been purchased exemption under the retail classification if the equipment had been purchased exemption under the retail classification if the equipment had been purchased exemption under the retail classification if the equipment had been purchased if exemptions for durable medical equipment provided by A R S 42 5061(A)(13) and exemptions provided by A R S 42 5061(J) A R S 42 5061(K) states: exemptions under the retail classification [A R S 42 5061(A)] expenses which have not been reported as taxable shall not be allowed as a bad F Any recovery of a bad debt subsequent to a bad debt deduction shall be reported F Gross receipts from the sale of nonprescription products or other medical F Gross receipts from the sale of nonprescription products or other medical supplies f Proof of export or import signed by a customs officer fabricating job printing refining or metallurgical operations The terms fabricating printing refining or metallurgical operations facilities Factoring tax: federal or state law can be dispensed only: finishing or packaging of articles of commerce Manufacturing is the fitness establishment or a private recreational establishment or any following the description of the deduction or scroll through the document to Food (www azleg state az us) FOOD and beverage sold to a commercial airline FOOD and beverage sold to a commercial airline 512 food and beverages if those items are to be provided without additional FOOD for home consumption sold by a qualified retailer FOOD for home consumption sold by qualified retailer 506 FOOD items sold to a prison jail or other institution under FOOD items sold to a prison jail or other institution under control of DOC DPS or Sheriff s office 514 FOOD purchased with food stamps from a qualified retailer FOOD purchased with food stamps from a qualified retailer 513 FOOD sales to a school district or charter school by a FOOD sales to a school district or charter school by a RESTAURANT 562 for air transportation to transport persons property or United States mail for future use Passive systems shall clearly be designed as a solar energy for health or fitness establishments or private recreational establishments as for participatory purposes for twenty eight days or more and accompanied for public use For purposes of this rule exemption period means the 12 month period For taxable periods beginning from and after December 31 1996 and for the above retail classification exemption under A R S 42 5061(B) or use for the above retail classification exemption under A R S 42 5061(B) or use tax for the above retail classification exemption under A R S 42 5061(B) or use tax for the above retail classification exemption under A R S 42 5061(B)(3) or use for the above retail classification exemption under A R S 42 5061(B)(6) or the for the above two exemptions from tax as well as the states For the purposes of this paragraph printing means a commercial printing For the purposes of this subsection direct costs means the portion of for the sole purpose of fueling compressor equipment that pressurizes for transaction privilege tax under the personal property rental classification on the foreign country FOrEST certified business FOrEST project by a qualified prime contractor Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Form TPT 1 Deduction Code Listing for Schedule A Formulary or any supplement to these documents; or four inch pipe exemption from [l]easing real property to a lessee who subleases the property if the lessee from city privilege taxes may be found is available on the internet at: from qualifying projects as defined in section 41 1516 if actual construction from qualifying projects as defined in section 41 1516 To qualify for this from the arizona use tax that correspond to the above transaction privilege tax from the sale of a motor vehicle to : from the tax if: front page of Form TPT 1 For additional information on completing Schedule FUEL sources sold to a qualified environmental technology FUEL sources sold to a qualified environmental technology manufacturer producer or processor 511 fuel that are subject to the tax imposed under section 28 8344 fuel which are subject to the tax imposed under section 28 8344 and sales FUEL: A retailer s SALES of vehicle fuel and aviation fuel FUEL: A retailer s SALES of vehicle fuel and aviation fuel See ARS 42 5061(A)(22) 515 FUEL: Liquefied Natural Gas used to fuel Compressor FUEL: Liquified natural gas used to fuel compressor equipment 563 FUEL: SALES of alternative fuels used to propel a motor FUEL: SALES of alternative fuels used to propel a motor vehicle 509 functional Gas diverted from a pipeline by a person engaged in the business of: gas used to propel a motor vehicle A R S 42 5159(A)(33) provides an identical gas water or electricity to consumers: A R S 42 5063(B)(1) excludes [s]ales GENErAL DEDUCTIONS FOr SELLErS GENERAL DEDuCTIONS FOR SELLERS: CODE generation or provision of on site power or energy solely for environmental Go to the Deduction Codes gross income from the sale so that the amount of transaction privilege gross income of a prime contractor under the prime contracting classification gross income received by a prime contracting business After taking any applicable gross proceeds derived from charges for delivery of the printing using the gross proceeds of sales or gross income derived from the business Because of the guest use fees harvesting or the initial processing of qualifying forest products removed has a developmental disability as defined in section 36 551 or has a has previously received a copy of this recognition has secured a special ninety day nonresident registration permit for head injury as defined in section 41 3201 to be more independent and Homeopathic Pharmacopeia of the United States official National However many of the deductions are similar to or are the same as city privilege http://modelcitytaxcode az gov/ http://www azsos gov/public services/title 15/15 05 htm identical to the transaction privilege tax exemption under the retail classification identical to the transaction privilege tax exemption under the retail classification identical to the transaction privilege tax exemption under the retail classification identical to the transaction privilege tax exemption under the retail classification identical to the transaction privilege tax exemption under the retail classification identical to the transaction privilege tax exemption under the retail classification identical to the transaction privilege tax exemption under the retail classification If a person is engaged in an occupation or business to which subsection if the articles and accessory tangible personal property are served to if the organization is dedicated to providing educational therapeutic if the tangible personal property is used by the organization solely to impaired and multihandicapped children from the time of birth to age implants / injectable meds to business implied warranties and the use of tangible personal property in completion of IMPORTANT: Deduction Code 999 is to be used ONLY when a specific imposed on the total of the person s gross proceeds of sales of tangible imposed to cover transaction privilege tax shall not remit less than the improvement building highway road railroad excavation manufactured In computing the tax base for the sale of a motor vehicle to a nonresident In computing the tax base gross proceeds of sales or gross income does in intrastate interstate or foreign commerce in producing livestock poultry or livestock or poultry products or who are in the conversion process in this state if the principal corporate office is located outside this includes underground surface and open pit operations for extracting ores including equipment including initiation fees which provide for the right to use a health or including school district libraries charter school libraries community Income derived by a contractor that qualifies as exempt subcontracting income income derived from a lease or rental of equipment that would qualify for the above income derived from sales to a retailer for resale in the regular course of business income from the transferred payment income of a prime contracting business (Class 015) The gross income from such income of a prime contracting business under the prime contracting classification incorporated in this state regardless of maintaining a place of business incurred in delivering the property and signed on the delivery date indigent for free individual; information about all of these exemptions and the forms that are required infrared portion for use in illuminating interior building spaces in lieu of infrastructure public safety or other public services necessary to the inspection to identify property as exempt Internal Revenue Code 501(c)(3) recognition unless the Department INTErNET ACCESS: SALES of Internet access by a INTERNET ACCESS: SALES of Internet access by a telecommunications business 517 interstate (or foreign) commerce: INTErSTATE COMMErCE: Sales made in interstate INTERSTATE COMMERCE: Sales made in interstate commerce 504 interstate or foreign commerce are deductible from the tax base if all of Invoiced by Printer IrS 501(C)(3) OrGANIZATION that feeds the needy or is being taken have been reported as taxable; is engaged in business classified under the commercial lease classification or the is reported under Class 51 ] is subject to tax under section 42 5156 is virtually identical to the transaction privilege tax exemption under the retail issue of exempt sales of drugs and medical oxygen on prescription it will make its books and records relating to sales of solar energy devices items of tangible personal property purchased by a person engaged in business and Items purchased with United States department of agriculture food stamp Job PRinting Class 010: Applies to the business of job printing engraving JOB PRINTING: Actual postage and freight expenses separately stated on invoices 561 JOB PrINTING: Actual Postage or Freight Expenses K There shall be deducted from the tax base fifty per cent of the gross labeling requirements in 21 CFR 201 66 lease are transferred to a third party leasing company leasing or renting such property leasing the property under the personal property rental classification LIBrArY MATErIALS sold to publicly funded libraries LIBRARY MATERIALS sold to publicly funded libraries for public use 519 license issued in this state and who [r]esells the job printing engraving embossing Livestock and poultry feed salts vitamins and other additives for LIVESTOCK AND POULTrY: Sales of feed salts vitamins LIVESTOCK AND POULTRY: Sales of feed salts vitamins and other additives to business 520 LIVESTOCK AND POULTrY: Sales of growth promotant LIVESTOCK AND POULTRY: Sales of growth promotant implants/injectable medicines to business 516 livestock or poultry consumption that are sold to persons who are engaged loading or transporting such extracted material to the surface Mining locate the CODE location location outside of Arizona for use outside of Arizona LOTTErY TICKETS: A retailer s SALES of lottery tickets LOTTERY TICKETS: A retailer s SALES of lottery tickets 521 M&E; or transmission lines used directly in producing or M&E; or transmission lines used directly in producing or transmitting electrical power 524 M&E; qualifying equipment sold or rented to a HEALTHY M&E; qualifying equipment sold or rented to a HEALTHY FOREST certified business 554 M&E; technology or related supplies sold to qualified M&E; technology or related supplies sold to qualified persons (See ARS 42 5061 exemptions ) 525 M&E; used directly in manufacturing processing M&E; used directly in manufacturing processing fabricating printing refining or metallurgical operations 522 M&E; used directly in mining operations M&E; used directly in mining operations 523 M&E; used in research and development M&E; used in research and development 553 machine is placed in service In the case of an environmental technology MACHINErY AND EqUIPMENT (M & E) SALES OF: MACHINERY AND EQUIPMENT (M&E;) SALES of: machinery equipment or other tangible personal property is a part of the prime machinery equipment or other tangible personal property is a part of the prime Machinery equipment or transmission lines used directly in producing or Machinery equipment technology or related supplies that are only useful machinery or equipment machinery or equipment are not subject to the tax under the retail machinery or equipment that constitutes the entire primary manufacturing Machinery or equipment used directly in manufacturing processing Machinery or equipment used in research and development For the made in interstate commerce As such records shall identify the tangible manufacturer producer or processor manufacturer producer or processor who does not manufacture paper the material to persons who use those items to commercially produce May 31 2013) state tax rate as long as the nonresident s state provides may be factored (or mathematically extracted) from the seller s gross income may be sufficient to substantiate the exemption: may include purchase orders letters or written memoranda means a drug or other article that can medicaid services common procedure code is designated reimbursable by MEDICAL EQUIPMENT including eyeglasses hearing aides DME prosthetic appliances 526 MEDICAL EqUIPMENT including eyeglasses hearing aids medicare is prescribed by a person who is licensed under title 32 chapter member of an Indian tribe who resides on the Indian reservation established for that MEMBErSHIPS (Class 12 only): Health fitness or private MEMBERSHIPS (Class 12 only): Health fitness or private recreational establishments; Monthly or longer 527 microwave radio and other equipment sold to microwave radio equipment and carrier equipment including optical fiber Mining machinery or equipment used directly in the process of extracting modifier assembler or repairer (100% deduction) modifier assembler or repairer if such sales are of any ingredient or months from the first day of the month following the issue date of the MOTOR VEHICLE (MV): MOTOr VEHICLE and parts sold to a MOTOr CArrIEr Motor vehicle fuel and use fuel that are subject to a tax imposed under Motor vehicle fuel and use fuel which are subject to a tax imposed under MOTOr VEHICLE LEASE: First month s lease payment MOTOr VEHICLE sold at auction to a nonresident if the MOTOr VEHICLE sold to a qualifying Native American MOTOr VEHICLE sold to a qualifying nonresident MOTOr VEHICLE: MOTOr VEHICLE: Manufacturer s cash rebate assigned by municipal libraries for use by the public as follows: MV and parts sold to a motor carrier subject to the Title 28 motor carrier fee who leases the vehicle 528 MV LEASE: First month s lease payment transferred to third party leasing company 556 MV sold at auction to a nonresident if seller delivers or ships out of state 529 MV sold to a qualified Native American 530 MV sold to a qualifying nonresident (See ARS 42 5061 exemptions ) 531 MV: Manufacturer s cash rebate assigned by purchaser to dealer 501 natural gas artificial gas water or coal slurry including compressor units necessity a supplemental air carrier certificate under federal aviation nonresident if the motor vehicle is delivered by the seller to an out ofstate nonresident of Arizona who is temporarily within this state are exempt nonresident state tax Rate schedules) This section also provides nonresidents of this state for use outside this state if the vendor ships or delivers Nontaxable Sales of Motor Vehicles To Nonresidents and Native Americans Nontaxable Sales of Motor Vehicles To Nonresidents and Native Americans for not already exempt under paragraph 8 of this subsection for livestock not be taxable if such contracts are sold as a distinct and separate item not exceed the actual postage and freight expense that is paid to the not include [a] manufacturer s cash rebate on the sales price of a motor not listed below) not subject to tax: of a prime contractor or contractors or a dealership of manufactured of a qualifying hospital which qualify for the transaction privilege tax exemption of a sense organ of ancillary services electric distribution services electric generation services of any prison jail or other institution under the jurisdiction of the of Arizona of business of chemicals involves direct contact with the materials from which the of contribution to or dedication of real property for providing public of Exempt Status of a Qualifying Hospital; a Qualifying Health Care Organization; of eyeglasses if purchased for use with prescription lenses of food beverages and condiments and accessories used for serving the of jet fuel which are subject to the tax imposed under article 8 of this of members except that this paragraph does not include additional fees of Revenue The actual text of the statutory deduction or exemption is of solar energy devices The retailer shall register with the department of tangible personal property to nonprofit charitable organizations that regularly of the following: of their Internal Revenue Code 501(c)(3) recognition unless the of this rule regardless of who is responsible for payment of the freight of this state if the purchaser s state of residence allows a corresponding of whether the tax was separately stated on the customer s bill or invoice or not oil natural/artificial gas water coal slurry omitted material information in its exemption request On the following page is a reproduction of the DEDUCTION CODE listing on the gross income gross proceeds of sales or gross receipts attributable on the receipt of orders placed by telephone on the sales invoice operation and includes job printing engraving embossing copying and or a written statement from such a buyer certifying that the buyer is not or appliances to doctors dentists or veterinarians are subject to tax unless the sale or copying or gross proceeds derived from charges from postage and freight if the or improvement owned by a qualified business under section 41 1516 for or its departments or agencies by the manufacturer modifier assembler or more and fees charged for use of the health or fitness establishment or off the premises: A R S 42 5074(B)(1) provides a deduction for [s]ales to a or other nontechnological activities or technical services or poultry owned by or in possession of persons who are engaged in or prime contractor or private recreational establishment by bona fide accompanied guests or processing operation from the initial stage where actual processing or production equipment is placed in service or recommendation as part of the vendor s records The vendor s records for or repairer or service contract under [A R S 42 5061(A)] An exclusion from gross or state law requires be reduced promptly to a form of writing by the or testing prototypes processes or new products including research and or to compensate for defective human hearing including parts or United States mail in intrastate interstate or foreign commerce or water to a person who resells the services These terms are defined in A R S ores or minerals from the earth for commercial purposes including organizations Organizations (www azsos gov) provides additional information about exemptions Organizations provides additional information about exemptions applicable OTHEr CITY deductions (use when specific deduction is OTHER CITY deductions (use when specific deduction is not listed below) 888 OTHEr STATE deductions (use when specific deduction is OTHER STATE deductions (use when specific deduction is not listed below) 999 other than initiation fees charged by a health or fitness establishment or out of state seller that is not liable for transaction privilege tax outside of Arizona outside this state if the vehicles are shipped or delivered out of this state owner operator or qualified colocation tenant of the Page 10 Page 15 Page 20 Page 25 Page 26 Page 30 Page 35 paragraph: part of the prototype or new product or that is required for machinery or partially replaces a part or function of the human body or increases parts of eyeglasses if purchased for use with prescription lenses party leasing company For this scenario the third party leasing company is liable passive means including wind generator systems that produce electricity patients; payment from the customer / lessee but transfers the lease payment to a third payment if the lease and the lease payment for the first month of the payments may be taken as a bad debt deduction if the tax was paid by PC: 35% reduction (= Gross Receipts Statutory Deductions 35%) 502 PC: Development or impact fees paid to state or local government 560 PC: Income derived from direct costs of providing architectural / engineering services 557 PC: Income derived from HEALTHY FOREST project by a qualified prime contractor 555 PC: Land deduction (fair market value) 518 PC: Subcontracting income 550 performance as a business of an integrated series of operations which person engaged in business classified under the restaurant classification if the items person in the absence of illness or injury and is appropriate for use in the person s subscribers and customers PErSONAL HYGIENE ITEMS and FOOD DrINK or PERSONAL HYGIENE items sold to transient lodging business 534 personal property a vendor of the property shall maintain the prescription personal property and gross income from services personal property is a personal hygiene item or articles used by human PeRsonal PRoPeRty Rental Class 014: Applies to a business that leases or personal property rental classification (Class 014) for: personal property rental classification if the lessee is engaged in the business of personal property rental classification when the dealer receives the first lease personal property sold and the delivery destination The following records personal property that is exempt under either subsection (B) or (F) are not subject personal property to a lessee who subleases the property is not taxable under the personal property to the United States Government that does not qualify for the personal property under the retail classification: A R S 42 5061(V)(3) excludes persons (See A r S 42 5061 exemptions) persons for consumption on the premises of a public school in the school persons shall attach to their exemption request a copy of their pharmacist or the prescriber physical change to occur in the materials as part of the production process Physically Handicapped Persons lists the statutory sites for exemptions for these PIPES OR VALVES 4 diameter or larger to transport oil natural/artificial gas water coal slurry 535 PIPES Or VALVES 4 diameter or larger used to transport Pipes or valves four inches in diameter or larger used to transport oil place tangible personal property in a form composition or character point portion of an establishment including tennis and other racquet courts power to produce mechanical power to provide solar daylighting or to prescriber and then filed by a pharmacist or the prescriber; or PrESCrIPTION DrUGS or prescribed medical oxygen PRESCRIPTION DRUGS or prescribed medical oxygen including equipment 536 prescription or recommendation as part of the vendor s records The prevention of disease in humans or animals; or primarily to provide heating to provide cooling to produce electrical PRIME CONTRACTING (PC): prime contracting classification (Class 015) for development or impact fees paid prime contracting classification (Class 015) for the prime contractor s cost of prime contracting classification (Class 015) for the prime contractor s cost of prime contracting classification (Class 015) for the prime contractor s cost of prime contracting classification (Class 015) for the prime contractor s cost of prime contracting project or structure PrIME CONTrACTING: PrIME CONTrACTING: 35% rEDUCTION PrIME CONTrACTING: Development or Impact Fees Paid PrIME CONTrACTING: Income derived from DIrECT PrIME CONTrACTING: Income derived from HEALTHY PrIME CONTrACTING: Land deduction (fair market value) PrIME CONTrACTING: Subcontracting Income Prime Contractors printer s own conveyance printer s records except that the amount deducted shall not exceed printer separately states the charges on a customer s invoice and in the printing classification (Class 010) for income derived from: private recreational establishment or any portion of an establishment privilege tax and use tax statutes to transactions with the United States Government privilege tax deductions under the retail classification (Class 017) for a retailer s privilege taxes imposed in this state by Indian tribes if the Indian tribal Privilege Use and Severance Tax Return (Form TPT 1) are paraphrased proceeds derived from the sale of a motor vehicle to a nonresident from proceeds or gross income from any sale of tangible personal property made processed article substance or commodity for sale in the regular course processing fabricating mining refining metallurgical operations producing livestock poultry or livestock or poultry products or who product is produced for the purpose of causing or permitting a chemical or products and those medical supplies or appliances not provided for under profession authorized by federal or state law to prescribe a drug profession Examples include over the counter drugs and those dietary programs for mentally or physically handicapped persons and qualifying prohibited from being so taxed by the Constitution of the United States or property are not subject to tax: property at the time of the sale; or property becoming a part of such motor vehicle sold to a motor carrier property to a destination in a foreign country property to a person engaged in the business of leasing or renting such property Prosthetic appliances protection This paragraph shall apply for twenty full consecutive provide and install a solar energy device A R S 42 5075(B)(13) states: provide any combination of the foregoing by means of collecting and provide health and medical related educational and charitable services provides additional clarification on this topic provides clarification about this deduction in subsection (F): providing architectural and engineering services that are a part of a prime contracting providing intrastate telecommunications services The telecommunications providing public infrastructure public safety or other public services purchased purchased exempt from tax under A R S 42 5061(A)(9) (12) and (13) purchaser to dealer purposes of this paragraph poultry includes ratites purposes of this paragraph research and development means basic and Pursuant to A R S 42 5066(B)(4) a printer may deduct its gross income pursuant to A R S 42 5075(D) above may be taken as a transaction privilege tax pursuant to section 41 1519 and that establishes its qualification for the qualification period for use in a computer data center that is certified qualified colocation tenant of the computer data center or an authorized qualified environmental technology manufacturer producer or processor Qualified retailers are described in a R s 42 5102 Tax Exemption for Sales of qualifies as a sale for resale and the doctor dentist or veterinarian is a retailer in qualify as nontaxable personal hygiene items ? Qualifying equipment that is purchased from and after June 30 2004 qUALIFYING HEALTH CArE OrGANIZATION to be used for qUALIFYING HOSPITAL qualifying hospitals qualifying health care organizations rehabilitation qualifying states R15 5 137 Warranty or service Contracts R15 5 175 sales to nonresidents temporarily Within this state R15 5 183 exempt sales to Health organizations R15 5 1860 (www azsos gov) The taxable category of food for consumption on R15 5 2011 bad Debts R15 5 2309 exemptions Purchases for Resale or lease receipts or gross proceeds of sales shall be deemed to be the amount receipts shall not be allowed for a warranty or service provision on the received exclusive of [t]he taxes imposed by this chapter and chapter received on the debt representing carrying charges interest and repossession recommendation of a member of the medical dental or veterinarian recommended by a health professional licensed pursuant to title 32 records of the vendor for the required statutory period recreational establishments; Monthly or longer Regarding sales of motor vehicles to nonresidents that are shipped or delivered outof state regardless of where title to the motor vehicles passes or its free on board regulations (14 Code of Federal Regulations part 121) or a foreign air regulator and tank on the prescription of a member of the medical regulators machinery and equipment fittings seals and any other part rehabilitation programs for mentally or physically handicapped persons rehabilitative and family medical education training for blind visually removing the property from this state rented by such person renting in the ordinary course of the purchaser s business are not subject to use tax rents tangible personal property for a consideration: Arizona Administrative Code replaces a part or function of the human body or increases the acuity represent the more often used statutory deductions or exemptions contained in request documentation supporting the statutory criteria and a copy request letter the statutorily required annual financial audit and a required by any state university or community college Resale or Lease states: rESALE: Sales for resale RESALE: Sales for resale 503 research and development and beginning on January 1 1999 printing if Research and development do not include manufacturing quality control research that is not included in the definition of research and development rESTAUrANT RestaURant Class 011: Applies to a business that operates a restaurant or restaurant classification (Class 011) for: result in the satisfaction of the debt Retail Class 017: Applies to the business of selling merchandise or other tangible retail classification (Class 017) for [s]ales [of tangible personal property] to retail classification (Class 017) for [s]ales of natural gas or liquefied petroleum retail classification (Class 017) for [s]ales of tangible personal property that is retail classification (Class 017) for [t]he sale of a motor vehicle to an enrolled retail classification (Class 017) for a retailer s sale of: retail classification (Class 017) for a retailer s sales of lottery tickets as authorized retail classification (Class 017) for a retailer s sales of: retail classification (Class 017) for a retailer s: retail classification (Class 017) for income derived from [s]ervices rendered in retail classification (Class 017) for income derived from: retail classification (Class 017) for sales of [t]extbooks by any bookstore that are retail classification (Class 017) for sales of tangible personal property made in retail classification (Class 017) for sales of: retail classification (Class 017) for sales of: retail classification (Class 017) for sales of: retail classification (Class 017) for sales of: retail classification (Class 017) for sales of: retail classification (Class 017) for sales of: retail classification (Class 017) for sales of: retail classification (Class 017) for sales of: retail classification (Class 017) for the amount of a motor vehicle manufacturer s retail classification (Class 017) for the sale of: retail classification (Class 017) for: retail classification (Class 017) for: retail classification (Class 017) for: retail classification (Class 017) for: Retail Sales stipulates that [g]ross receipts from services rendered in addition to retains liability for payment upon default of the original payor routine consumer product testing market research sales promotion sale of tangible personal property when such property cannot be sold sale with recourse and principal payments are made by the vendor to the Sales [of tangible personal property] made directly to a manufacturer Sales made directly to the United States government or its departments or Sales of articles of prepared or unprepared food drink or condiment and Sales of food drink and condiment for consumption within the premises Sales of implants used as growth promotants and injectable medicines Sales of liquid solid or gaseous chemicals used in manufacturing Sales of materials that are purchased by or for publicly funded libraries Sales of motor vehicles at auction to nonresidents of this state for use Sales of postage and freight except that the amount deducted shall Sales of seeds seedlings roots bulbs cuttings and other propagative Sales of warranty or service contracts The storage use or consumption of sales of: sales or gross income derived from the business prior to the computation of the 65% sales service research in social sciences or psychology computer software Sales to nonresidents of this state for use outside this state if the same as the state s exemption For city privilege tax exemptions that are not schedules and listings of the states whose residents may qualify section 42 5075 subsection B paragraph 6 sections 28 2154 and 28 2154 01 See A r S 42 5061(A)(22) See Arizona Transaction Privilege Tax Procedure tPP 08 1 Procedure for Documenting See Arizona Transaction Privilege Tax Procedure tPP 08 1 Procedure for Documenting SEEDS and other propagative material sold to COMMErCIAL SEEDS and other propagative material sold to COMMERCIAL AGRICULTURE businesses 537 seller delivers or ships out of state selling tangible personal property at retail are subject to tax unless the charge for separately charging the transaction privilege tax versus factoring this separately itemized by the taxpayer on the customer s invoice and in the separately stated and included in the sales price by the seller If the seller charges separately the gross proceeds of sales of tangible personal property and serve meals to the needy and indigent on a continuing basis at no cost provides service is shown separately on the sales invoice and records services SErVICES provided in connection with rETAIL SALES SERVICES provided in connection with retail sales 549 shall be deducted from the tax base a portion of the gross proceeds or shall keep adequate documentation pursuant to statutory requirements shipped or delivered directly to a destination outside the United States for use in similar establishment where articles of food or drink are sold for consumption on smelting and refining SOLAr ENErGY DEVICES sold by a registered solar retailer SOLAR ENERGY DEVICES sold by a registered solar retailer or prime contractor 538 Solar energy systems may also have the capability of storing solar energy sold are to be resold in the regular course of the business sold to commercial airlines or foreign governments specified purposes state and the property will not be used in this state other than in state department of corrections the department of public safety the state of residence does not impose an excise tax and the nonresident Statutes (A R S ) These deduction codes are for use in Schedule A of Form statutory criteria The Exemption Letter shall be valid for a period of 12 statutory deductions or exemptions contained in the Arizona Revised Statutes stipulation that the tax base under the prime contracting is 65% of the gross income structure project development or improvement as part of the structure such as a window Subcontractors or others who perform services in respect to any subcontractors This subsection states: subject to tax subject to tax if they can demonstrate that the job was within the control subject to tax under article 1 of this chapter if the property so sold is any subject to tax under the transient lodging classification if the tangible subject to the Title 28 motor carrier fee who LEASES the subject to the transaction privilege tax under the transient lodging classification subsection (A) apply subsection (B) are subject to tax subsequent sale of the financing contract such property in this state other than in removing such property from such substances supplements vitamins minerals herbs and other similar supplements supplies or appliances to doctors dentists or veterinarians are subject to switching equipment switchboards private branch exchange equipment switching switchboards private branch exchange TANGIBLE PERSONAL PROPERTY (TPP): tangible personal property a vendor of the property shall maintain the tangible personal property provided under the conditions of such contracts TANGIBLE PErSONAL PrOPErTY shipped or delivered Tangible personal property sold in interstate or foreign commerce if TANGIBLE PErSONAL PrOPErTY sold or rented to a TANGIBLE PErSONAL PrOPErTY sold or rented to an Tangible personal property sold to a commercial airline and consisting TANGIBLE PErSONAL PrOPErTY sold to a nonresident Tangible personal property sold to a person engaged in business and TANGIBLE PErSONAL PrOPErTY sold to a taxable PrIME Tangible personal property sold to persons engaged in business classified tangible personal property that is exempt under either subsection (B) or Tangible personal property which directly enters into and becomes TANGIBLE PErSONAL PrOPErTY: tax base ) A R S 42 5075(B)(19) states that the deduction is for: tax base for the prime contracting classification is 65% percent of the remaining Tax by the Vendor and R15 5 2210 01 Factoring provide guidance on TAX collected or factored TAX collected or factored 551 tax deduction under the amusement classification (Class 012) for membership fees tax deduction under the personal property rental classification (Class 014) for Tax exempt food sold by a qualified retailer is addressed in detail in A A C rule tax exemption under A R S 42 5159(B)(14) when the purchase of the exempt tax exemption under A R S 42 5159(B)(22) when the purchase of the exempt tax exemption under A R S 42 5159(B)(3) when the purchase of the exempt tax exemptions that are found in the model City tax Code For those program tax expense on to the purchaser Transaction privilege tax charged by the seller is tax is imposed with respect to sales by non Indian or nonaffiliated Indian tax that apply to the different types of entities that are included in the definition tax that is paid in this state is equal to the excise tax that is imposed tax These rules are available on the Secretary of State s web site at tax unless the sale qualifies as a sale for resale and the doctor dentist or taxable prime contracting warranty contracts as well as nontaxable maintenance taxes imposed by municipalities in this state and sales or transaction taxpayer s records technology manufacturing producing or processing or environmental telecommunications business teleCommUniCations Class 005: Applies to the business of providing intrastate TELECOMMUNICATIONS EqUIPMENT: Central office TELECOMMUNICATIONS EQUIPMENT: central office switching switchboards private branch telecommunications services to customers: A R S 42 5064(B)(1)(a) provides a Temporarily Within this State provides additional information about this exemption: TEXTBOOKS that are required by a state university or TEXTBOOKS that are required by a state university or community college 505 that are identical to the transaction privilege tax exemptions under the retail that do not qualify as prescription drugs that foreign country that is used in operating the pipes or valves that may the 16 taxable business classifications in the Arizona Revised Statutes For Arizona the above definition of a solar energy device: the above exemption under the retail classification if the equipment had been the actual costs that are directly expended in providing architectural or the acuity of a sense organ the amount paid by the printer to the United States Postal Service or a the Arizona Legislature s website at www azleg gov see left hand column under The Arizona transaction privilege tax is imposed on the seller who may pass this the arizona use tax that applies to purchases of tangible personal property from an the body of humans or animals; or the business of reselling the property the computer data center 565 the constitution of this state the construction of any building or other structure project development the debt from the amount originally reported as taxable The portion of the amounts The Deduction Codes listed on page 2 of Form TPT 1 the Transaction The Department s application for Registration as a solar energy Retailer or solar the Department s letter that is provided to such entities the exempt income Other statutory deductions and exemptions may be found in the following apply: The following Deduction Codes have been removed from the DEDUCTION the following transaction privilege tax business classification statutes and in the the gross income from sales of services and if not so kept the tax shall be The gross proceeds of sales or gross income derived from memberships The gross proceeds of sales or gross income received from a contract for the items and equipment that qualifies for exemption under A R S 42 5061(A)(9) the lease is for less than five years the motor vehicle the needy and indigent on a continuing basis at no cost the pipeline The portion of gross proceeds of sales or gross income attributable to the the premises is also addressed in this rule the prime contracting classification (Class 015) may be taken for direct costs of the rate of the tax in the purchaser s state of residence is lower than the rate prescribed in article 1 of this chapter or if the purchaser s the retail classification (Class 017) for sales of: the retail sale of tangible personal property: The sales price of land which shall not exceed the fair market value The section of the Department s website addressing the The specific deductions and assigned code numbers contained in this listing The specific deductions contained in this TPT 1 Deduction Code listing are state the tangible personal property out of this state The telecommunications classification is comprised of the business of the total development fees credited in exchange for the construction The United States Government and its departments and agencies are not subject to the vehicle as prescribed by sections 28 2154 and 28 2154 01 there the vendor on the original sale of the tangible personal property or on the There are tHRee transaction privilege tax exemptions under the retail classification There shall be deducted from the tax base the amount received from sales these terms are defined within this statute The deduction applies to: third party pursuant to the default of the original payor Such principal this deduction at the time of purchase the owner operator or qualified This Deduction Code reference document is intended to provide the This general exemption may apply to the sale of a motor vehicle to a this paragraph commercial airline means a person holding a federal This paragraph does not include chemicals that are used or consumed in this paragraph poultry includes ratites this prime contracting deduction in detail this prime contracting deduction in detail this state by common carrier United States mail or the vendor s own this state This subdivision also applies to corporations that are not this subsection therefore allows for a 35% deduction those operations commonly understood within their ordinary meaning through June 30 2014 by a qualified business under section 41 1516 for time period shall begin with the date the first manufacturing processing title 28 chapter 16 article 1 sales of use fuel to a holder of a valid single Title 28 statutes are available on the internet at the Arizona Legislature s web site to [o]ther persons engaged in businesses classified under the telecommunications to a common carrier for transportation to a location outside Arizona the to a development and authorized pursuant to section 9 463 05 section to a state or local government (This deduction is taken from the gross proceeds of to assist a person who is physically disabled as defined in section 46 191 to development fees that are incurred in relation to a contract for To qualify for this exemption the seller must ship or deliver the tangible personal to qualifying health care organizations and other entities and addresses the to State or Local Government to tax to the end of the 12 month period or the organization misrepresented or to the job and from which the subcontractors or others were paid tPP 00 2 Procedure for Factoring Transaction Privilege Tax and Related Taxes for TPP shipped or delivered directly to a destination outside the U S for use in that foreign country 540 TPP sold or rented to a QUALIFYING HEALTH CARE ORGANIZATION to be used for specified purposes 545 TPP sold or rented to a QUALIFYING HOSPITAL 546 TPP sold or rented to an IRS 501(C)(3) ORGANIZATION that feeds the needy and indigent for free 544 TPP sold to a nonresident and shipped or delivered out of state by the seller for use outside of Arizona 541 TPP sold to a taxable PRIME CONTRACTOR or sub to be physically incorporated into a project or structure 552 TPT 1 which itemizes the deduction amounts that have been taken on the transaction privilege tax and Arizona use tax deductions or exemptions that are not Transaction Privilege Tax and Related Taxes for Retailers and other Non Prime transaction privilege tax deduction from the gross income of a prime contracting Transaction Privilege Tax Resale Provisions Under the Following transactions that include services: transferred to 3rd party leasing company transferring solar generated energy into such uses either by active or transient lodging classification transmitting electrical power transmitting electrical power but not including distribution Transformers tribe trip use fuel tax permit issued under section 28 5739 and sales of aviation trip use fuel tax permit issued under section 28 5739 sales of aviation twenty one U S GOVT: Other rETAIL SALES directly to U S GOVT U S GOVT: Other RETAIL sales directly to U S GOVT (TPT: 50% deduction; USE TAX: 100% deduction) 548 U S GOVT: rETAIL SALES to a manufacturer modifier U S GOVT: Retail sales to manufacturer modifier assembler or repairer if end product sold to U S GOVT 543 U S GOVT: rETAIL SALES to U S GOVT by a manufacturer U S GOVT: Retail sales to U S GOVT by a manufacturer modifier assembler or repairer (100% deduction) 547 under the personal property rental classification if such property is to be leased or Under the prime contracting classification A R S 42 5075(B)(13) provides a Under the prime contracting classification A R S 42 5075(D) specifically addresses under the prime contracting classification under section 42 5075 or to under the restaurant classification (Class 011) under the retail classification (Class 017) for part or all of the sales under the retail classification [A R S 42 5061(A)(25)(a) above] under the telecommunications classification and consisting of central office under this article by reason of being engaged in business classified United States postal service or a commercial delivery service and that is use or occupancy of real property: A R S 42 5069(C)(3) excludes income derived use tax use tax use tax exemption statute (All of the Arizona Revised Statutes are available on use tax exemption to the tax imposed by article 1 of this chapter and use tax exemption under A R S 42 5159(B)(6) when the purchase of the exempt using or consuming the chemicals alone or as part of an integrated system Utilities Class 004: Applies to businesses that provide natural or artificial vehicle vehicle if the buyer assigns the buyer s right in the rebate to the retailer vendor s records for documenting sales shall provide reasonable detail to vendor sells a contract or other financial obligation to a third party but vendor ships or delivers the tangible personal property out of this state vendor to establish out of state shipments vendors to nonmembers of the tribe A person who imposes an added veterinarian is a retailer in the business of reselling the property WArrANTIES Or SErVICE CONTrACTS WARRANTIES or service contracts 542 warranty contracts implied warranties or a warranty or service provision which is not deducted under subsection J of this section which provide for the right to use a health or fitness establishment or While not a directly corresponding exemption to the transaction privilege tax who is subject to a fee prescribed in title 28 chapter 16 article 4 [See whose residents do not qualify for exemption from Arizona tax (see within the state the vendor shall obtain a completed exemption certificate without the acceptance of the warranty or service provision worksheets that a motor vehicle seller may use to determine the correct www azleg state az us

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