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State of Arizona
Department of Revenue

Decisions from the Arizona Department of Revenue

These decisions come from the Arizona Department of Revenue Hearing Office and the Director’s Office and are posted here as required by A.R.S. § 42-2077

Select a Decision category   then click on the Decision name to view the document.

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DecisionOfficeDateSorted By Date In Descending OrderDescriptionDocument
201500304-LDirector11/10/2016The Department was authorized to revoke or suspend the license of a wholesale distributor of tobacco products. The extent to which the distributor failed to comply with his reporting and filing obligations, the practicality of a suspension as compared to a revocation of the license, and the possible consequences of any tobacco tax and licensing enforcement deemed not diligent under the tobacco Master Settlement Agreement favored revocation of the license.View Decision
201400197-SDirector10/27/2015Subscription income from online database was subject to transaction privilege tax under the state and city personal property rental classifications.View Decision
201300197-SDirector12/3/2014Receipts from excavation, forest clearing and road construction were taxable prime contracting receipts.View Decision
201400069-LDirector12/2/2014Purchaser is liable for luxury and use taxes on cigarettes purchased from an out-of-state vendor and shipped into Arizona.View Decision
201200247-SDirector11/19/2013Taxation of the business of providing and servicing portable toilet containers.View Decision
201000178-SDirector8/1/2011Nexus for transaction privilege taxView Decision
200900059-S Director1/21/2011Providing prewritten or “canned” computer software, whether or not characterized as a license agreement is a taxable retail sale. Nexus can be created through independent representatives who solicit sales. Interest abatement denied.View Decision
200900113-SDirector8/18/2010Taxpayer owes use tax on a trailer because staying in the trailer two nights as he was bringing the trailer to Arizona does not rise to the level of “first actual use” and does not qualify as a bone fide use outside Arizona.View Decision
200900009-SDirector7/26/2010Proceeds for work on a pipeline are taxable under prime contracting because the pipeline is permanently attached.View Decision
200900056-SDirector5/17/2010Restaurant classification, definition of delicatessen business, sales of food for consumption off the premises, separate lines of business.View Decision
200800211-SDirector1/22/2010Receipts from software support, updates and new releases for combined fee were taxable under the retail classification and were not exempt under the machinery and equipment exemption. Editing software used by newspaper publisher did not qualify as machinery and equipment used directly in manufacturing, processing, fabricating or job printing. View Decision
200700222‑SDirector6/15/2009RV Dealership failed to prove out-of- state residency and residency on reservations for Native Americans for various sales of RVs and therefore was not entitled to exemptions. In some cases there was no Form 5000, in other cases there was a Form 5000, but the contradictory evidence held by the Dealership demonstrated the Dealership did not accept the Forms in good faith.View Decision
200800088-SDirector4/24/2009Use tax is due on watercraft bought with the intent to use in Arizona and then brought into and used Arizona. Taxpayer’s test driving watercraft was not a first use out of state.View Decision
200700085-SDirector10/8/2008Taxpayer was a prime contractor subject to the transaction privilege tax on his entire fees where he was hired as a “construction manager” or “advisor” to use his contracting knowledge to supervise or coordinate several construction projects, as well as doing some construction himself. Where Taxpayer was one of the persons on the title of the property on which he oversaw construction, he was liable for use tax on the items he purchased from retailers who knew him to be a contractor and did not include a charge for tax on the purchases.View Decision
200700045-SDirector9/8/2008Contracting. Taxpayers assumed the prime contracting transaction privilege tax liabilities of the Off-site Contractors, who were not exempt subcontractors, by issuing Form 5005 exemption certificates to the Off-site Contractors.View Decision
200700120-SHearing3/14/2008Contracting. Where a Contractor had dominion over sales proceeds, assigning them to another party does not exclude the proceeds from being subject to the transaction privilege tax.View Decision
200500180-SDirector7/9/2007The installation of security systems is taxable as prime contracting.View Decision
200500019-SDirector3/26/2007Taxpayer argues that it is entitled to additional exemptions for the installation of exempt manufacturing machinery or equipment and for purchases of exempt pollution control equipment.View Decision
200500065-SDirector3/23/2007Whether certain transactions were retail sales or investments.View Decision
200600015-SDirector12/5/2006Refund Claim and statute of limitations.View Decision
200600005-SDirector10/13/2006Penalty abatement request.View Decision
200500005-SDirector9/22/2006Taxation of transient lodging business.View Decision
200500034-SDirector7/26/2006Bad debt deduction not allowed to taxpayer that did not incur the debt. View Decision
200500067-SDirector7/17/2006Fees charged by photographer are taxable.View Decision
200400092-SDirector10/24/2005Gross receipts from green fees for the use of golf courses are subject to the transaction privilege tax under the amusement classification.View Decision
200300086-SDirector4/19/2004The sale of small electric generators for household and farm use are not exempt from the transaction privilege tax. View Decision
200200180-SDirector11/26/2003Architectural, engineering and design fees were taxable under the prime contracting classification and whether penalties were warranted. (superseded by legislation, see A.R.S. § 42-5075.J.)View Decision
200200148-SDirector8/25/2003Beer and wine labeled non-alcoholic, but which contain some alcohol, constitute alcoholic beverages and do not fall within the definition of food eligible to be sold by a qualified retailer exempt from the transaction privilege tax.View Decision
200200106-SDirector3/6/2003Taxpayer did not present reasonable cause for the abatement of penalties.View Decision