Tax on Tax

Tax Exemption Spreadsheet (Double Taxation)

Category Short Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Dollar Amount Date Passed Comments

Description Ammended Tax









§ 42-5061 (A) (5) NIA Sales Tax Sale for resale to restaurant



Sales to persons engaged in business classified under the restaurant

classification of articles used by human beings for food, drink or Double Taxation sales of food to restaurants

condiment, whether simple, mixed or compounded.



§ 42-5159 (A) (25) NIA Use Tax Sale for resale to restaurant









Fuel is subject to tax under

§ 42-5061 (A) (22) NIA 1991 Sales Tax

title 28

Motor vehicle fuel and use fuel which are subject to a tax imposed

under title 28, chapter 16, article 1, [FN8] sales of use fuel to a

holder of a valid single trip use fuel tax permit issued under § 28-

Double Taxation motor vehicle fuel

5739, sales of aviation fuel which are subject to the tax imposed

under § 28-8344 and sales of jet fuel which are subject to the tax

imposed under article 8 of this chapter.



§ 42-5159 (A) (5) NIA 1991 Use Tax









Motor vehicle fuel and use fuel that are subject to a tax imposed

under title 28, chapter 16, article 1, sales of use fuel to a holder of a

§ 42-5071 (B) (3) valid single trip use fuel tax permit issued under section 28-5739 and Double Taxation rental property NIA 1991 Sales Tax Personal property rental

sales of aviation fuel that are subject to the tax imposed under

section 28-8344.









Tangible personal property sold to a person that is subject to tax

§ 42-5061 (A) (27) $200,969,000 1998 Sales Tax

under this article by reason of being engaged in business classified

under the prime contracting classification under section 42-5075, or

to a subcontractor working under the control of a prime contractor Sales of articles to a

that is subject to tax under article 1 of this chapter, if the property so Double Taxation contractor for incorporation

sold is any of the following: or fabrication under contract

(a) Incorporated or fabricated by the person into any real property,

structure, project, development or improvement as part of the

§ 42-5159 (A) (13) (g) business. NIA 1998 Use Tax









1

Tax Exemption Spreadsheet (Double Taxation)

Category Short Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Dollar Amount Date Passed Comments

Description Ammended Tax







§ 42-5061 (A) (31) NIA Sales Tax

Sales of commodities, as defined by title 7 United States Code

Commodities under futures

Sales 2, that are consigned business in a warehouse the restaurant

sectionto persons engaged in for resaleclassified under in this state in

contracts consigned to a

classification of commodity by human beings contract drink or Double Taxation

or from which thearticles used is deliverable on afor food, for future Double Taxation sales of food to restaurants

warehouse

subject to whether simple, mixed market regulated

delivery condiment,the rules of a commodityor compounded. by the for resale

United States commodity futures trading commission.

§ 42-5159 (A) (14) NIA Use Tax









Sales of any spirituous, vinous or malt liquor by a person that is

Spirituous vinous or malt

§ 42-5061 (A) (51) licensed in this state as a wholesaler by the department of liquor Double Taxation liquor by a liquor wholesaler NIA 1999 1999 Sales Tax Retroactive to Jan. 1, 1991

licenses and control pursuant to title 4, chapter 2, article 1.









Sales of tangible personal property to be leased or rented to a person

§ 42-5071 (C) engaged in a business classified under the personal property rental Double Taxation rental property NIA Sales Tax

classification are deemed to be resale sales.









The tax base for the mining classification is the gross proceeds of To ensure that the same

business is not taxed both on

sales or gross income derived from the business. The gross proceeds

§ 42-5072 (B) Double Taxation mining NIA Sales Tax the extraction of the minerals

of sales or gross income derived from sales described under section and the retail sale of the

42-5061, subsection A, paragraph 27 materials.









The tax base for the mining classification is the gross proceeds of

sales or gross income derived from the business. The gross proceeds Double This is to ensure that the tax

is not imposed on the same

§ 42-5072 (B) of sales or gross income derived from sales described under section Taxation/Federal mining NIA Sales Tax

transaction under two

42-5061, subsection A, paragraph 27 and subsection K, paragraph 2 Government sales classifications.

shall be deducted from the tax base.









The gross proceeds of sales or gross income derived from Gross proceeds of sales or

transporting for hire persons, freight or property by a railroad gross income derived from

transporting

pursuant to a contract with another railroad that is also considered to

§ 42-5062 (B) (1) Double Taxation for hire persons, freight, or NIA 1999 1999 Sales Tax

be engaged in the businesses of transporting persons, freight or

property by a railroad

property for hire if the other railroad is liable for the tax on gross pursuant to a contract with

proceeds of sales or gross income attributable to the transportation. another railroad









2

Tax Exemption Spreadsheet (Double Taxation)

Category Short Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Dollar Amount Date Passed Comments

Description Ammended Tax







These exemptions are related

The gross proceeds of sales or gross income derived from business to bundled activities by hotels

activity that is properly included in any other business classification and resorts. Prior to this

under this article and that is taxable classified under the restaurant

Sales to persons engaged in business to the person engaged in that when a hotel purchased an

§ 42-5062 (B) (2) Double Taxation

classification of the gross proceeds of sales or for food, drink be Double Taxation "package" activities NIA 1999 1999 Sales Tax

classification, but articles used by human beings gross income toor sales of food to restaurants activity such as jeep tours

deducted shall not exceedsimple, mixed or compounded.

condiment, whether the consideration paid to the person and resold them to its

conducting the activity. customers both transactions

were subject to tax.









The gross proceeds of sales or gross income derived from a business These exemptions are related

activity that is arranged by the person who is subject to tax under this to bundled activities by hotels

section and that is not taxable to the person conducting the activity and resorts. Prior to this

due to an exclusion, exemption or deduction under this section or when a hotel purchased an

§ 42-5062 (B) (3) Double Taxation "package" activities NIA 1999 1999 Sales Tax

activity such as jeep tours

section 42-5073, but the gross proceeds of sales or gross income to

be deducted shall not exceed the consideration paid to the person and resold them to its

conducting the activity. customers both transactions

were subject to tax.









These exemptions are related

The gross proceeds of sales or gross income derived from business to bundled activities by hotels

activity that is arranged by a person who is subject to tax under this and resorts. Prior to this

section and that is taxable to another person under this section who when a hotel purchased an

§ 42-5062 (B) (4) Double Taxation "package" activities NIA 1999 1999 Sales Tax

activity such as jeep tours

conducts the activity, but the gross proceeds of sales or gross income

to be deducted shall not exceed the consideration paid to the person and resold them to its

conducting the activity. customers both transactions

were subject to tax.









Sales of ancillary services, electric distribution services, electric

generation services, electric transmission services and other services Interstate sales of electricity, Related to electric utility

§ 42-5063 (B) (1) Double Taxation natural gas & water

NIA 1999 1999 Sales Tax

deregulation.

related to providing electricity, gas or water to a person who resells

the services.









Manufacturing or publishing

§ 42-5065 (A) (1) Manufacturing or publishing books. Double Taxation books

NIA Sales Tax









§ 42-5066 (B) (1) (a) Resells the job printing, engraving, embossing or copying. Double Taxation NIA Sales Tax









Leasing films, tapes or slides

Leasing or renting films, tapes or slides used by theaters or movies, used by theaters or movies or

§ 42-5071 (A) (1) Double Taxation used by television stations or NIA Sales Tax

which are engaged in business under the amusement classification,

radio stations









The gross proceeds of sales or gross income derived from sales to

persons engaged in the business of transient lodging classified under

section 42-5070, if all of the following apply:

(a) The persons who are engaged in the transient lodging business

sell the amusement to another person for consideration.

§ 42-5073 (B) (4) Double Taxation NIA Sales Tax

(b) The consideration received by the transient lodging business is

equal to or greater than the amount to be deducted under this

subsection.

(c) The transient lodging business has provided an exemption

certificate to the person engaging in business under this section.









These exemptions are related

Business activity that is properly included in any other business to bundled activities by hotels

classification under this article and that is taxable to the person and resorts. Prior to this

when a hotel purchased an

§ 42-5073 (B) (5) (a) engaged in that classification, but the gross proceeds of sales or Double Taxation NIA 1999 1999 Sales Tax

activity such as jeep tours

gross income to be deducted shall not exceed the consideration paid and resold them to its

to the person conducting the activity. customers both transactions

were subject to tax.









Business activity that is arranged by a person who is subject to tax

under this section and that is taxable to another person under this

§ 42-5073 (B) (5) (c) section who conducts the activity, but the gross proceeds of sales or Double Taxation NIA Sales Tax

gross income to be deducted shall not exceed the consideration paid

to the person conducting the activity.









3

Tax Exemption Spreadsheet (Double Taxation)

Category Short Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Dollar Amount Date Passed Comments

Description Ammended Tax







Sales to a person engaged in business classified under the restaurant

§ 42-5074 (B) (1) classification if the items sold are to be resold in the regular course Double Taxation NIA Sales Tax

Sales to persons engaged of the business.

in business classified under the restaurant

classification of articles used by human beings for food, drink or Double Taxation sales of food to restaurants

condiment, whether simple, mixed or compounded.







Tangible personal property sold in this state, the gross receipts from

§ 42-5159 (A) (1) the sale of which are included in the measure of the tax imposed by Double Taxation NIA 1956 1956 Use Tax

articles 1 and 2 of this chapter.









Tangible personal property the sale or use of which has already been

subjected to an excise tax at a rate equal to or exceeding the tax

imposed by this article under the laws of another state of the United

§ 42-5159 (A) (2) Double Taxation NIA 1956 Use Tax

States. If the excise tax imposed by the other state is at a rate less

than the tax imposed by this article, the tax imposed by this article is

reduced by the amount of the tax already imposed by the other state.









Tangible personal property which directly enters into and becomes

an ingredient or component part of any manufactured, fabricated or Articles to be incorporated

§ 42-5159 (A) (4) Double Taxation into a manufactured product $612,912,000 Use Tax

processed article, substance or commodity for sale in the regular

course of business.









Tangible personal property brought into this state by an individual

who was a nonresident at the time the property was purchased for Relates to used items

§ 42-5159 (A) (6) storage, use or consumption by the individual if the first actual use Double Taxation NIA Use Tax individuals bring with them

or consumption of the property was outside this state, unless the when moving into the state.

property is used in conducting a business in this state.









The sale of a motor vehicle to:

(a) A nonresident of this state if the purchaser's state of residence

does not allow a corresponding use tax exemption to the tax Exempt motor vehicle sales

§ 42-5061 (A) (28) (a) imposed by article 1 of this chapter and if the nonresident has Double Taxation (certain nonresidents and NIA Sales Tax

secured a special thirty-day nonresident registration of the vehicle by Indians)

applying according to section 28-2154.









(d) Amounts attributable to federal excise taxes imposed by 26

United States Code section 4001, 4051 or 4091 on sales of heavy

§ 42-5151 (14) (d) Double Taxation NIA 1956 Use Tax

trucks and trailers and automobiles or on sales of use fuel, as defined

in section 28-5601.









Advertising supplements which are intended for sale with

newspapers published in this state and which have already been

§ 42-5159 (A) (11) subjected to an excise tax under the laws of another state in the Double Taxation NIA Use Tax

United States which equals or exceeds the tax imposed by this

article.







Seeds, seedlings, roots,

Seeds, seedlings, roots, bulbs, cuttings and other propagative

Section 42-5159(A)(9) and 42- bulbs, cuttings, and other

material for use in commercially producing agricultural, Double Taxation propogative

NIA 1992 1992 Laws 1992, Chapter 162

5061(A)(34) horticultural, viticultural or floricultural crops in this state. material









Gas diverted from a pipeline, by a person engaged in the business of

operating a natural or artificial gas pipeline, and used or consumed

§ 42-5159 (A) (45) Double Taxation NIA Use Tax

for the sole purpose of fueling compressor equipment that

pressurizes the pipeline.







Sales of intrastate telecommunications services to:

Direct broadcast satellite

§ 42-5064 (B) (1) (a) (a) Other persons engaged in businesses classified under the Double Taxation television services

NIA Sales Tax

telecommunications classification for use in such business.









4

Tax Exemption Spreadsheet (Double Taxation)

Category Short Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Dollar Amount Date Passed Comments

Description Ammended Tax







"Selling at retail" means a sale for any purpose other than for resale

in the regular course of business in the form of tangible personal

Definition of Retail Sale

property, but transfer of possession, lease and rental as used in the

§ 42-5061 (V) (3) Sales to persons engaged in business classified under the restaurant Double Taxation Wholesale Trade $2,552,694,000 Sales Tax includes other transactions

definition of sale mean only such transactions as are found on such as conditional sales.

classification of articles used by human beings for food, drink or Double Taxation sales of food to restaurants

investigation to be in lieu of sales as defined without the words lease

condiment, whether simple, mixed or compounded.

or rental.









Related to horse racing. I

§ 42-5073 (B) (2) Amounts that are exempt under section 5-111, subsection H. Double Taxation NIA 1996 Sales Tax

think it is the purse amounts.









Tangible personal property sold to a person engaged in the business

Rental income taxed under

of leasing or renting such property under the personal property rental

§ 42-5061 (A) (23) Double Taxation rental property NIA Sales Tax personal property rental

classification if such property is to be leased or rented by such classification.

person.









Livestock and poultry feed, salts, vitamins and other additives Livestock, poultry, feed,

§ 42-5061 (A) (43) Economic 13,449,000 1994 1994 Sales Tax Laws 1994, Chapter 307.

for livestock or poultry consumption that are sold to persons and supplies for use or

Development

who are engaged in producing livestock, poultry, or livestock or consumption in

(Industry

poultry products or who are engaged in feeding livestock or the businesses of farming,

Subsidy/Agricult ranching and feeding

poultry commercially. For purposes of this paragraph, "poultry"

§ 42-5159 (A) (8) ure) livestock and poultry NIA 1994 1994 Use Tax Laws 1994, Chapter 307.

includes ratites.







Exemption total 3,380,024,000









5

Tax Exemption Spreadsheet (Ease of Administration)

Category Short Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Dollar Amount Date Passed Comments

Description Ammended Tax





"Gross proceeds of sales" means the value proceeding or

accruing from the sale of tangible personal property without any

Ease of

§ 42-5001 (5) deduction on account of the cost of property sold, expense of Cash Discounts NIA 1935 Sales Tax

Administration

any kind or losses, but cash discounts allowed and taken on

sales are not included as gross income.





The sale of stocks and bonds. Ease of

§ 42-5061 (A) (7) Stocks and Bonds $92,741,000 Sales Tax Intangible, Exclusion

Administration









§ 42-5061 (A) (18) Food and drink to a person who is engaged in business which is $13,291,000 Sales Tax

classified under the restaurant classification and which provides Meals provided to

Ease of

such food and drink without monetary charge to its employees Employees of Restaurants

Administration

for their own consumption on the premises during the without charge

employees' hours of employment.

§ 42-5159 (A) (24) NIA Use Tax







The sale of precious metal bullion and monetized bullion to the

ultimate consumer, but the sale of coins or other forms of Ease of Precious Metal bullion and

§ 42-5061 (A) (21) NIA Sales Tax Intangible, Exclusion

money for manufacture into jewelry or works of art is subject to Administration Monetized bullion

the tax. In this paragraph:





These cards are often sold by retail

Telecommunications services purchased with a prepaid calling establishments. Much easier to tax

Ease of

§ 42-5064 (B) (5) card, or a prepaid authorization number for telecommunications Sales of phone cards NIA 1999 1999 Sales Tax them at the retail sale. It is

Administration unknown where the phone services

services, that is taxable under section 42-5061.

will actually be used,







Leasing or renting four or

Leasing or renting four or fewer rooms of an owner-occupied fewer rooms of an owner

occupied Intended to help small business

residential home, together with furnishing no more than a Ease of

§ 42-5070 (B) (3) residence bed and NIA 1995 1995 Sales Tax owner who occasionally operates a

breakfast meal, to transient lodgers at no more than a fifty per Administration bed and breakfast.

breakfast with less than

cent average annual occupancy rate. 50% average annual

occupancy









6

Tax Exemption Spreadsheet (Ease of Administration)

Category Short Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Dollar Amount Date Passed Comments

Description Ammended Tax









Leasing or renting tangible personal property by a parent Often when related corporations

corporation to a subsidiary corporation or by a subsidiary lease real property to each other

Ease of

§ 42-5071 (A) (3) corporation to another subsidiary of the same parent corporation NIA Sales Tax there is no real rent payment. This

Administration follows the concept of the federal

if taxes were paid under this chapter on the gross proceeds or

consolidated returns.

gross inco









A retailer who is a street or sidewalk vendor and who uses a

Ease of Food for individual

§ 42-5102 (A) (5) pushcart, mobile facility, motor vehicle or other such NIA 1980 1997 Use Tax

Administration consumption.

conveyance.







Ease of Food for individual

§ 42-5102 (A) (6) Vending machines and other types of automatic retailers. NIA 1980 1997 Use Tax

Administration consumption.









"Purchase price" or "sales price" means the total amount for

which tangible personal property is sold, including any services

that are a part of the sale, valued in money, whether paid in

money or otherwise, and any amount for which credit is given

to the purchaser by the seller without any deduction on account

of the cost of the property sold, materials used, labor or services

performed, interest charged, losses or other expenses, but does

not include:

(a) Discounts allowed and taken.

Ease of

§ 42-5151 (14) (b) Charges for labor or services in installing, remodeling or NIA 1956 Use Tax To conform Use Tax to Retail TPT

Administration

repairing.

(c) Freight costs billed to and collected from a purchaser by a

retailer for tangible personal property which, on the order of the

retailer, is shipped directly from a manufacturer or wholesaler to

the purchaser.

(d) Amounts attributable to federal excise taxes imposed by 26

United States Code section 4001, 4051 or 4091 on sales of

heavy trucks and trailers and automobiles or on sales of use

fuel, as defined in section 28-5601.









Tangible personal property not exceeding two hundred dollars TPP not exceeding $200

in any one month purchased by an individual at retail outside Ease of purchase by an individual

§ 42-5159 (A) (10) NIA Use Tax

the continental limits of the United States for the individual's Administration at retail outside the

own personal use and enjoyment. Continental US









Exemption $106,032,000









7

Tax Exemption Spreadsheet (Services)

Category Short Sales Tax/Use

Statute/Exclusion Statute text Category Dollar Amount Date Passed Last Date Ammended Comments

Description Tax

Services (business to Services to Dwellings &

$34,790,000 Taxable if contracting

business) Other Buildings





Services (business to Credit Reporting,

Collection Agencies

$11,476,000

business)





Advertising Agencies, Repealed effective Jan. 1,

Services (business to

direct mail advertising & $23,200,000 1984 1986. See Laws 1985, Cities tax local advertising

business)

Display advertising Chapter 298



Services (business to

Public Relations $1,484,000

business)



Services (business to

Market Research $5,216,000

business)



Services (business to

Document Prep Services $2,529,000

business)



Services (business to

Stenographic Services $1,139,000

business)

Professional or personal service occupations or businesses

§ 42-5061 (A) (1) which involve sales or transfers of tangible personal property Services (business to Sales Tax

only as inconsequential elements. Graphic Design $6,006,000 Could be Taxed under Job Printing

business)



Services (business to Computer Systems Design

Services

$32,054,000

business)



Services (business to Management Consulting

$40,119,000

business) Services





Services (business to Environmental Consulting

$3,400,000

business) Services





Services (business to Scientific & Technical

$6,205,000

business) Consulting Services





Services (business to Scientific Research &

Development

$13,768,000

business)



Services (business to Testing Laboratories &

Facilities

$9,073,000

business)



Services (business to Investigation & Security

$17,417,000

business) Services





Services (business to

Exclusion Telemarketing Bureaus $12,227,000

business)



Services (business to

Exclusion Computer Programming $22,221,000

business)



Services (business to Telephone Answering

Exclusion $5,866,000

business) Service



Outside the scope of the rental of real

Exclusion Services (personal) Automobile Parking $2,151,000 property. See Arizona Department of

Revenue TPR 99-2.





Automotive Services, See Chapter 77 Laws 1935. Enactment

Exclusion Services (personal) $19,333,000 1935 of original TPT on retail sales.

Except Repair





Watch, Clock & Jewelry

Exclusion Services (personal) $652,000 1935?

Repair



Miscellaneous Repair &

Exclusion Services (personal) $2,929,000

Relate Services





Exclusion Services (personal) Dry Cleaning & Laundry $6,663,000



Hair, Nail & Skin Care

Exclusion Services (personal) $13,867,000

Services



Footwear, Leather &

Exclusion Services (personal) Garment Repair & $467,000

Alteration



Exclusion Services (personal) Diet Reducing Services $2,030,000



Personal & Household

Exclusion Services (personal) $12,315,000

Goods Repair



Miscellaneous Personal

Exclusion Services (personal) $1,760,000

Services





Exclusion Services (personal) Other Social Services $14,720,000



Technical & Trade

Exclusion Services (personal) $8,440,000

Schools





Exclusion Services (personal) Temporary Help Services $68,507,000





Exclusion Services (personal) Death Care Services $7,321,000 Sales of coffins, etc. taxable.

8

Tax Exemption Spreadsheet (Services)

Category Short Sales Tax/Use

Statute/Exclusion Statute text Category Dollar Amount Date Passed Last Date Ammended Comments

Description Tax



Photographic Studios, Taxable See Arizona Administrative

Exclusion Services (personal) $2,766,000

Portraits Code Section 15-5-150





Linen & Uniform Taxable under rental of personal

Exclusion Services (personal) $8,616,000

Cleaning property. See AAC R15-5-1502





All freight is exempt from tax if

Freight charges relating to

actual freight charged. Shipping

Services (personal) nonmetalliferous mineral NIA Sales Tax and handling is taxable. See AAC

products

Services rendered in addition to selling tangible personal R15-5-133

§ 42-5061 (A) (2)

property at retail.

Could be taxed under fabricating.

Re-upholstery & Furniture

Services (personal) $1,504,000 Sales Tax See definition of "Sale". ARS Sec.

Repair

42-5001.12(b).







The tax base includes the value of the entire product mined,

quarried or produced for sale, profit or commercial use in this Tax base for prime contracting is 65%

state, regardless of the place of sale of the product or of the of the gross proceeds from the

Services (business to Wages & Salaries for labor business. The 35% deduction is in lieu

§ 42-5072 (C) fact that deliveries may be made to points without this state. If, $280,282,000 Sales Tax of labor. According to the industry the

business) employed in construction

however, the sale price of the product includes freight, the sale 35% amount is inadequate so some

price shall be reduced by the actual freight paid by any person labor is taxed.

from the place of production to the place of delivery.

Professional or personal service occupations or businesses

§ 42-5061 (A) (1) which involve sales or transfers of tangible personal property Sales Tax

only as inconsequential elements. Employee Leasing

Exclusion Services (professional) $66,461,000

Services





Services (professional) Legal $94,065,000





Services (professional) Engineering $67,224,000





Services (professional) Architectural $20,369,000





Services (professional) Surveying $2,277,000



Accounting, Auditing and

Services (professional) $40,773,000

Bookkeeping





Services (professional) Physicians $163,114,000





Professional or personal service occupations or businesses Services (professional) Optometrists $5,021,000 Sales Tax

§ 42-5061 (A) (1) which involve sales or transfers of tangible personal property

only as inconsequential elements. Services (professional) Chiropractors $8,922,000





Services (professional) Dentists $45,463,000



Physical, Occupational &

Services (professional) $7,966,000

Speech Therapists



Nursing & Personal Care

Services (professional) $45,724,000

Facilities





Services (professional) Outpatient Care $19,211,000





Copying is taxable under job

printing. If in a hotel or other

Services (professional) Business Service Centers $11,963,000 taxable business would be included

in taxable gross receipts.







Sales of warranty or service contracts. The storage, use or

consumption of tangible personal property provided under the Warranty or Service See Jim Click Ford v. City Court considered these intangible like

§ 42-5061 (A) (3) Services (personal) 1987 Sales Tax an insurance policy.

conditions of such contracts is subject to tax under § 42-5156. Contracts of Tucson, 154 Ariz. 48.







(b) Charges for labor or services in installing, remodeling or

repairing.

(c) Freight costs billed to and collected from a purchaser by a Services (business to

§ 42-5151 (14) (b) and (c) labor and freight 1956 Use Tax

retailer for tangible personal property which, on the order of business)

the retailer, is shipped directly from a manufacturer or

wholesaler to the purchaser.





Reported Total $1,301,066,000









9

Tax Exemption Spreadsheet (Environmental)

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Date Passed Last Date Ammended Sales Tax/Use Tax Comments





§ 42-5061 (B) (12) NIA Sales Tax



Groundwater measuring devices required under § 45-604. Environmental Industry Water



§ 42-5159 (B) (12) NIA Use Tax









§ 42-5061 (A) (27) (b) NIA Sales Tax





(b) Used in environmental response or remediation activities under

Environmental Industry Cleaning

section 42-5075, subsection B, paragraph 6.





§ 42-5159 (A) (13) (g) (ii) NIA Use Tax









§ 42-5061 (B) (20) Machinery and equipment that are sold to a person engaged in the NIA 1995 Sales Tax

commercial production of livestock, livestock products or

agricultural, horticultural, viticultural or floricultural crops or Environmental Industry enviornmentally friendly equiptment

products in this state and that are used directly and primarily to

prevent, monitor, control or reduce air, water or land pollution.

§ 42-5159 (B) (20) NIA 1995 Use Tax









The gross proceeds of sales or gross income that is derived from a

contract entered into with a person who is engaged in the

commercial production of livestock, livestock products or

agricultural, horticultural, viticultural or floricultural crops or

products in this state for the construction, alteration, repair, Control, monitor and prevention

§ 42-5075 (B) (11) Environmental Industry NIA Sales Tax

improvement, movement, wrecking or demolition or addition to or activities

subtraction from any building, highway, road, excavation,

manufactured building or other structure, project, development or

improvement used directly and primarily to prevent, monitor,

control or reduce air, water or land pollution.







§ 42-5061 (A) (36) NIA 1993 1993 Sales Tax Laws 1993, Chapter 206

Sales of natural gas or liquefied petroleum gas used to propel a

Environmental Industry Alternative fuel

motor vehicle.

§ 42-5159 (A) (33) NIA 1993 1993 Use Tax Laws 1993, Chapter 206





Sales of alternative fuel, as defined in § 1-215, to a used oil fuel

§ 42-5061 (A) (47) burner who has received a permit to burn used oil or used oil fuel Environmental Industry Alternative fuel NIA 1998 Sales Tax

under § 49- 426 or 49-480.





§ 42-5063 (B) (3) NIA 1997 1997 Sales Tax Utilities Classification

Sales of alternative fuel, as defined in section 1-215, to a used oil

fuel burner who has received a permit to burn used oil or used oil Environmental Industry Alternative fuel

fuel under section 49-426 or 49-480.

§ 42-5159 (A) (42) NIA 1997 1997 Use Tax









§ 42-5071 (B) (2) (d) (d) Section 42-5061, subsection O. Environmental Industry enviornmentally friendly equiptment NIA









10

Tax Exemption Spreadsheet (Environmental)

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Date Passed Last Date Ammended Sales Tax/Use Tax Comments





Sales and installation of groundwater measuring devices required

under section 45-604 and groundwater monitoring wells required by

§ 42-5075 (B) (2) Environmental Industry water NIA Sales Tax

law, including monitoring wells required under § 45-604.

Groundwater measuring devicesinstalled for acquiring information Environmental Industry Water

for a permit required by law.







Machinery or equipment, including related structural components,

§ 42-5061 (B) (19) that is employed in connection with manufacturing, processing, NIA 1998 1998 Sales Tax

fabricating, job printing, refining, mining, natural gas pipelines,

metallurgical operations, telecommunications, producing or

transmitting electricity or research and development and that is used Laws 1999, Retroactive to tax

directly to meet or exceed rules or regulations adopted by the federal Environmental Industry enviornmentally friendly equiptment periods beginning from and after

energy regulatory commission, the United States environmental May 19, 1977

protection agency, the United States nuclear regulatory commission,

§ 42-5159 (B) (19) the Arizona department of environmental quality or a political NIA 1998 1998 Use Tax

subdivision of this state to prevent, monitor, control or reduce land,

water or air pollution.









§ 42-5061 (A) (50) NIA 1998 Sales Tax Alternative fuel vehicles

Sales of alternative fuel vehicles, as defined in § 43-1086, if the

vehicle was manufactured as a diesel fuel vehicle and converted to

operate on alternative fuel and equipment that is installed in a Environmental Industry Alternative fuel

conventional diesel fuel motor vehicle to convert the vehicle to

operate on an alternative fuel, as defined in § 1-215.

§ 42-5159 (A) (44) NIA 1998 1998 Use Tax









§ 42-5061 (A) (52) NIA 1998 1998 Sales Tax

Sales of tangible personal property to be incorporated or installed as

part of environmental response or remediation activities under § 42- Environmental Industry Cleaning Equiptment

5075, subsection B, paragraph 6.

§ 42-5159 (A) (47) NIA 1998 1998 Use Tax







There shall be deducted from the tax base the amount received from

sales of solar energy devices, but the deduction shall not exceed five

thousand dollars for each solar energy device. Before deducting any

amount under this subsection, the retailer shall register with the

§ 42-5061 (O) Environmental Industry Solar energy devices NIA Sales Tax

department as a solar energy retailer. By registering, the retailer

acknowledges that it will make its books and records relating to

sales of solar energy devices available to the department for

examination.





Sales of natural gas or liquefied petroleum gas used to propel a

§ 42-5063 (B) (2) Environmental Industry Alternative fuel NIA Sales Tax

motor vehicle.









11

Tax Exemption Spreadsheet (Environmental)

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Date Passed Last Date Ammended Sales Tax/Use Tax Comments



The gross proceeds of sales or gross income from a contract to

provide for one or more of the following actions, or a contract for

site preparation, constructing, furnishing or installing machinery,

equipment or other tangible personal property, § 45-604.

Groundwater measuring devices required underincluding structures Environmental Industry Water

necessary to protect exempt incorporated materials or installed

machinery or equipment, and tangible personal property

incorporated into the project, to perform one or more of the

following actions in response to a release or suspected release of a

hazardous substance, pollutant or contaminant from a facility to the

environment, unless the release was authorized by a permit issued

by a governmental authority:

(a) Actions to monitor, assess and evaluate such a release or a

suspected release. Contracts for environmental

§ 42-5075 (B) (6) Environmental Industry NIA Sales Tax

(b) Excavation, removal and transportation of contaminated soil and activities

its treatment or disposal.

(c) Treatment of contaminated soil by vapor extraction, chemical or

physical stabilization, soil washing or biological treatment to reduce

the concentration, toxicity or mobility of a contaminant.

(d) Pumping and treatment or in situ treatment of contaminated

groundwater or surface water to reduce the concentration or toxicity

of a contaminant.

(e) The installation of structures, such as cutoff walls or caps, to

contain contaminants present in groundwater or soil and prevent

them from reaching a location where they could threaten human

health or welfare or the environment.

This paragraph does not include asbestos removal or the



For taxable periods beginning from and after December 31, 1996

and ending before January 1, 2011, the contractor's retail cost of

solar energy devices that the contractor supplies and installs

pursuant to contracts. The deduction shall not exceed five thousand

dollars for each solar energy device. Before deducting any amount

§ 42-5075 (B) (14) Environmental Industry Solar energy devices NIA Sales Tax

under this paragraph, the contractor shall register with the

department as a solar energy contractor. By registering, the

contractor acknowledges that it will make its books and records

relating to sales of solar energy devices available to the department

for examination.







Reported Total NIA









12

Tax Exemption Spreadsheet (Economic Development)

Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Comments

Passed Ammended Tax







The gross proceeds of sales or gross income derived from a contract

Economic Development

§ 42-5075 (B) (15) entered into for the construction of a launch site, as defined in 14 Code Launch site Sales Tax

(Aerospace)

of Federal Regulations section 401.5.









§ 42-5061 (B) (8) Machinery, tools, equipment and related supplies used or consumed NIA 1992 1992 Sales Tax Laws 1992, Chapter 222

Machinery, tools, equipment used in

directly in repairing, remodeling or maintaining aircraft, aircraft Economic Development repairing , remodeling or maintaining

engines or aircraft component parts by or on behalf of a certificated or (Aerospace) aircraft, aircraft engines or aircraft

licensed carrier of persons or property. component parts



§ 42-5159 (B) (8) NIA 1992 1992 Use Tax Laws 1992, Chapter 222









Tangible personal property sold to a commercial airline and consisting

§ 42-5061 (A) (49) of food, beverages and condiments and accessories used for serving NIA 1997 1997 Sales Tax Retroactive to Jan. 1, 1982

the food and beverages, if those items are to be provided without

TPP consisting of food, beverages and

additional charge to passengers for consumption in flight. For purposes Economic Development

condiments sold to or

of this paragraph, "commercial airline" means a person holding a (Airline) purchased by a commercial airline

federal certificate of public convenience and necessity or foreign air

carrier permit for air transportation to transport persons, property or

§ 42-5159 (A) (43) NIA 1997 1997 Use Tax

United States mail in intrastate, interstate or foreign commerce.









Aircraft, navigational and communication instruments and other

accessories and related equipment sold to:

(a) A person holding a federal certificate of public convenience and

§ 42-5061 (B) (7) necessity, a supplemental air carrier certificate under federal aviation NIA 1967 Sales Tax

regulations (14 Code of Federal Regulations part 121) or a foreign air

carrier permit for air transportation for use as or in conjunction with or

becoming a part of aircraft to be used to transport persons, property or

United States mail in intrastate, interstate or foreign commerce.

Economic Development Certain aircraft, navigational and

(b) Any foreign government for use by such government outside of this

(Airline) communication instruments

state.

(c) Persons who are not residents of this state and who will not use

such property in this state other than in removing such property from

this state. This subdivision also applies to corporations that are not

§ 42-5159 (B) (7) incorporated in this state, regardless of maintaining a place of business NIA 1967 Use Tax

in this state, if the principal corporate office is located outside this state

and the property will not be used in this state other than in removing

the property from this state.









The tax imposed on the restaurant classification pursuant to this section

does not apply to the gross proceeds of sales or gross income from

tangible personal property sold to a commercial airline consisting of

food, beverages and condiments and accessories used for serving the

TPP consisting of food, beverages and

food and beverages, if those items are to be provided without Economic Development

§ 42-5074 (C) condiments sold to or NIA 1997 1997 Sales Tax

additional charge to passengers for consumption in flight. For purposes (Airline)

purchased by a commercial airline

of this subsection, "commercial airline" means a person holding a

federal certificate of public convenience and necessity or foreign air

carrier permit for air transportation to transport persons, property or

United States mail in intrastate, interstate or foreign commerce.









13

Tax Exemption Spreadsheet (Economic Development)

Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Comments

Passed Ammended Tax







§ 42-5061 (A) (44) Sales of implants used as growth promotants and injectable medicines, NIA 1994 1994 Sales Tax Laws 1994, Chapter 307.

not already exempt under paragraph 8 of this subsection, for livestock

Economic Development Sale or purchase of implants used as

or poultry owned by or in possession of persons who are engaged in

(Industry growth promotants and

producing livestock, poultry, or livestock or poultry products or who injectable medicine

Subsidy/Agriculture)

are engaged in feeding livestock or poultry commercially. For

purposes of this paragraph, "poultry" includes ratites.

§ 42-5159 (A) (7) NIA 1994 1994 Use Tax Laws 1994, Chapter 307.









§ 42-5061 (B) (5) NIA Sales Tax

Neat animals, horses, asses, sheep, ratites, swine or goats used or to be Neat animals, horses, asses, sheep,

Economic Development

used as breeding or production stock, including sales of breedings or swine, or goats used or to be used as

(Agriculture) breeding or production stock

ownership shares in such animals used for breeding or production.

§ 42-5159 (B) (5) NIA Use Tax







New machinery and equipment consisting of tractors, tractor-drawn

§ 42-5061 (B) (13) implements, self-powered implements, machinery and equipment NIA Sales Tax

necessary for extracting milk, and machinery and equipment necessary

for cooling milk and livestock, and drip irrigation lines not already

exempt under paragraph 6 of this subsection and that are used for

commercial production of agricultural, horticultural, viticultural and Economic Development

Agricultural equipment

floricultural crops and products in this state. In this paragraph: (Agriculture)

(a) "New machinery and equipment" means machinery and equipment

which have never been sold at retail except pursuant to leases or

§ 42-5159 (B) (13) rentals which do not total two years or more. NIA Use Tax

(b) "Self-powered implements" includes machinery and equipment that

are electric-powered.









§ 42-5061 (B) (18) Machinery and equipment used directly in the feeding of poultry, the NIA 1998 1998 Sales Tax

environmental control of housing for poultry, the movement of eggs Machinery and equipment used in the

Economic Development

within a production and packaging facility or the sorting or cooling of feeding of poultry or

(Agriculture) production and packaging of eggs

eggs. This exemption does not apply to vehicles used for transporting

§ 42-5159 (B) (18) eggs. NIA 1998 1998 Use Tax







Machinery and equipment that are sold to a person engaged in the

§ 42-5061 (B) (20) New machinery and equipment used for NIA 1995 Sales Tax

commercial production of livestock, livestock products or agricultural,

Economic Development commercial production

horticultural, viticultural or floricultural crops or products in this state

(Agriculture) of agricultural, horticultural

and that are used directly and primarily to prevent, monitor, control or viticultural and floricutural crops

§ 42-5159 (B) (20) reduce air, water or land pollution. NIA 1995 Use Tax







The gross proceeds of sales or gross income received from a contract

for the construction of an environmentally controlled facility for the Economic Development

§ 42-5075 (B) (10) Agricultural equipment NIA Sales Tax

raising of poultry for the production of eggs and the sorting, cooling (Agriculture)

and packaging of eggs.









14

Tax Exemption Spreadsheet (Economic Development)

Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Comments

Passed Ammended Tax





The gross proceeds of sales or gross income received from a contract

entered into for the construction, alteration, repair, addition,

subtraction, improvement, movement, wrecking or demolition of any

building, highway, road, railroad, excavation, manufactured building

Contracting in a military reuse zone for

or other structure, project, development or improvement located in a Economic Development

a manufacturer, assembler

§ 42-5075 (B) (4) military reuse zone for providing aviation or aerospace services or for (Construction industry to NIA Sales Tax

or fabricator of aviation or aerospace

a manufacturer, assembler or fabricator of aviation or aerospace federal government) products

products within five years after the zone is initially established or

renewed under section 41-1531. To qualify for this deduction, before

beginning work under the contract the prime contractor must obtain a

letter of qualification from the department of revenue.









§ 42-5061 (B) (4) Machinery, equipment or transmission lines used directly in producing NIA 1967 Senate Bill 4, 1967 Sales Tax

Machinery, equipment or transmission

or transmitting electrical power, but not including distribution.

Economic Development lines used directly in

Transformers and control equipment used at transmission substation

(Energy) producing or transmitting electrical

sites constitute equipment used in producing or transmitting electrical power

§ 42-5159 (B) (4) power. NIA 1967 Use Tax









§ 42-5061 (B) (10) NIA 1967 Sales Tax

Machinery or equipment used directly to drill for oil or gas or used

Economic Development

directly in the process of extracting oil or gas from the earth for Gas and Oil

(Energy)

commercial purposes.

§ 42-5159 (B) (10) NIA 1967 Use Tax





Economic Development

§ 42-5071 (A) (1) or used by television stations or radio stations. Entertainement NIA Sales Tax

(Entertainment)





Machinery or equipment that enables a television station to originate

and broadcast or to receive and broadcast digital television signals and

§ 42-5061 (B) (21) that was purchased to facilitate compliance with the NIA 1998 1998 Sales Tax

telecommunications act of 1996 (P.L. 104-104; 110 Stat. 56; 47

United States Code § 336) and the federal communications

commission order issued April 21, 1997 (47 Code of Federal

Regulations part 73). This paragraph does not exempt any of the Digital television machinery and

following: Economic Development equipment purchases for

(a) Repair or replacement parts purchased for the machinery or (Entertainment) compliance with the

equipment described in this paragraph. Telecommunications Act of 1996

(b) Machinery or equipment purchased to replace machinery or

equipment for which an exemption was previously claimed and taken

§ 42-5159 (B) (21) NIA 1988 2002 Use Tax

under this paragraph.

(c) Any machinery or equipment purchased after the television station

has ceased analog broadcasting, or purchased after November 1, 2009,

whichever occurs first.









15

Tax Exemption Spreadsheet (Economic Development)

Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Comments

Passed Ammended Tax





Machinery and equipment that are purchased by or on behalf of the

owners of a soundstage complex and primarily used for motion

picture, multimedia or interactive video production in the complex.

§ 42-5061 (B) (15) This paragraph applies only if the initial construction of the soundstage NIA 1996 1996 Sales Tax

complex begins after June 30, 1996 and before January 1, 2002 and

the machinery and equipment are purchased before the expiration of

five years after the start of initial construction. For purposes of this

paragraph:

(a) "Motion picture, multimedia or interactive video production" Machinery and equipment purchased by

Economic Development

includes products for theatrical and television release, educational or on behalf of owners

(Entertainment) of a soundstage complex

presentations, electronic retailing, documentaries, music videos,

industrial films, CD-ROM, video game production, commercial

advertising and television episode production and other genres that are

introduced through developing technology.

(b) "Soundstage complex" means a facility of multiple stages including

§ 42-5159 (B) (15) NIA 1988 2002 Use Tax

production offices, construction shops and related areas, prop and

costume shops, storage areas, parking for production vehicles and

areas that are leased to businesses that complement the production

needs and orientation of the overall facility.









The gross proceeds of sales or gross income derived from

memberships, including initiation fees, which provide for the right to

use a health or fitness establishment or a private recreational

establishment, or any portion of an establishment, including tennis and

other racquet courts at that establishment, for participatory purposes

for twenty-eight days or more and fees charged for use of the health or Private or group instructional activities;

membership and initiation

fitness establishment or private recreational establishment by bona fide Economic Development

§ 42-5073 (B) (1) fees for health clubs or private 17,280,000 1995 1996 Sales Tax

accompanied guests of members, except that this paragraph does not (Entertainment/Health) recreational establishments with

include additional fees, other than initiation fees, charged by a health memberships greater than 28 days

or fitness establishment or a private recreational establishment for

purposes other than memberships which provide for the right to use a

health or fitness establishment or private recreational establishment, or

any portion of an establishment, for participatory purposes for twenty-

eight days or more and accompanied guest use fees.









The gross proceeds of sales or gross income derived from membership

fees, including initiation fees, that provide for the right to use a

transient lodging recreational establishment, including golf courses and

tennis and other racquet courts at that establishment, for participatory

purposes for twenty-eight days or more, except that this paragraph Economic Development

§ 42-5073 (B) (3) Golf packages for groups 1995 1996 Sales Tax

does not include additional fees, other than initiation fees, that are (Entertainment/Tourism)

charged by a transient lodging recreational establishment for purposes

other than memberships and that provide for the right to use a transient

lodging recreational establishment or any portion of the establishment

for participatory purposes for twenty-eight days or more.







In addition to the deductions from the tax base prescribed by

subsection A of this section, there shall be deducted from the tax base

the gross proceeds of sales or gross income derived from sales of

Machinery, equipment, utility product,

machinery, equipment, materials and other tangible personal property Economic Development

materials and other TPP

§ 42-5061 (E) used directly and predominantly to construct a qualified environmental (Environmental NIA Sales Tax

used to construct a qualified

technology manufacturing, producing or processing facility as Technology) environmental technology facility

described in § 41-1514.02. This subsection applies for ten full

consecutive calendar or fiscal years after the start of initial

construction.









16

Tax Exemption Spreadsheet (Economic Development)

Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Comments

Passed Ammended Tax





The gross proceeds of sales or gross income derived from a contract

to construct a qualified environmental technology manufacturing,

producing or processing facility, as described in section 41-1514.02,

and from subsequent construction and installation contracts that begin Economic Development Gross proceeds from contracts to

§ 42-5075 (B) (5) within ten years after the start of initial construction. To qualify for this (Environmental construct a qualified NIA Sales Tax

deduction, before beginning work under the contract the prime Technology) environmental technology facility

contractor must obtain a letter of qualification from the department of

revenue. This paragraph shall apply for ten full consecutive calendar or

fiscal years after the start of initial construction.







Coal, petroleum, coke, natural gas, virgin fuel oil and electricity sold

to a qualified environmental technology manufacturer, producer or

processor as defined in § 41-1514.02 and directly used or consumed in

§ 42-5061 (A) (38) NIA 1993 1993 Sales Tax Laws 1993, Chapter 258

the generation or provision of on-site power or energy solely for

environmental technology manufacturing, producing or processing or

Economic Development Coal, petroleum, coke natural gas,

environmental protection. This paragraph shall apply for fifteen full

(Environmental virgin fuel oil and electricity to

consecutive calendar or fiscal years from the date the first paper an environmental technology facility

Technology)

manufacturing machine is placed in service. In the case of an

environmental technology manufacturer, producer or processor who

does not manufacture paper, the time period shall begin with the date

§ 42-5159 (A) (31) NIA 1993 1993 Use Tax Laws 1993, Chapter 258

the first manufacturing, processing or production equipment is placed

in service.





The portion of gross proceeds of sales or gross income that is derived

from sales to an environmental technology manufacturer, producer or

processor as defined in section 41-1514.02 of a utility product and that

is used directly in environmental technology manufacturing, producing

or processing. This paragraph shall apply for fifteen full consecutive Economic Development

§ 42-5063 (C) (4) calendar or fiscal years from the date the first paper manufacturing (Environmental Environmental technology NIA Sales Tax

machine is placed in service. In the case of an environmental Technology)

technology manufacturer, producer or processor who does not

manufacture paper, the time period shall begin with the date the first

manufacturing, processing or production equipment is placed in

service.









The portion of gross proceeds of sales or gross income that is derived

from sales to an environmental technology manufacturer, producer or

processor as defined in section 41-1514.02 of a utility product and that

is used directly in environmental technology manufacturing, producing

or processing. This paragraph shall apply for fifteen full consecutive Economic Development

§ 42-5063 (C) (4) calendar or fiscal years from the date the first paper manufacturing (Environmental enviornmentally friendly equiptment NIA Sales Tax

machine is placed in service. In the case of an environmental Technology)

technology manufacturer, producer or processor who does not

manufacture paper, the time period shall begin with the date the first

manufacturing, processing or production equipment is placed in

service.









Leasing or renting tangible personal property for incorporation into or

comprising any part of a qualified environmental technology facility as Leasing or renting personal property

Economic Development

described in section 41-1514.02. This paragraph shall apply for ten full for incorporation into a

§ 42-5071 (A) (6) (Environmental NIA Sales Tax

consecutive calendar or fiscal years following the initial lease or rental qualified environmental technology

Technology)

by each qualified environmental technology manufacturer, producer or facility

processor.









Clean rooms that are used for manufacturing, processing, fabrication

or research and development, as defined in paragraph 14 of this

subsection, of semiconductor products. For purposes of this paragraph,

"clean room" means all property that comprises or creates an Clean rooms used for manufacturing,

§ 42-5061 (B) (17) environment where humidity, temperature, particulate matter and processing fabrication or NIA 1997 1997 Sales Tax Laws 1997, Chapter 61

research and development

contamination are precisely controlled within specified parameters,

without regard to whether the property is actually contained within that

Economic Development

environment or whether any of the property is affixed to or

(Hightech

incorporated into real property. Clean room:

Manufacture/semi-

(a) Includes the integrated systems, fixtures, piping, movable

conductor)

partitions, lighting and all property that is necessary or adapted to

reduce contamination or to control airflow, temperature, humidity,

chemical purity or other environmental conditions or manufacturing

tolerances, as well as the production machinery and equipment Gross income from machinery,

operating in conjunction with the clean room environment. equipment and materials used

§ 42-5159 (B) (17) NIA Use Tax

(b) Does not include the building or other permanent, nonremovable directly to construct a qualified

component of the building that houses the clean room environment. environmental technology facility









The gross proceeds of sales or gross income that is derived from the Economic Development

Gross income from installation,

installation, assembly, repair or maintenance of clean rooms that are (Hightech

§ 42-5075 (B) (12) assembly , repair or maintenance NIA Sales Tax

deducted from the tax base of the retail classification pursuant to Manufacture/semi- of clean rooms

section 42-5061, subsection B, paragraph 17. conductor)









17

Tax Exemption Spreadsheet (Economic Development)

Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Comments

Passed Ammended Tax







Sales of liquid, solid or gaseous chemicals used in manufacturing,

§ 42-5061 (A) (39) processing, fabricating, mining, refining, metallurgical operations, NIA 1994 1998 Sales Tax Laws 1994, chapter 41

research and development and, beginning on January 1, 1999, printing,

if using or consuming the chemicals, alone or as part of an integrated

system of chemicals, involves direct contact with the materials from Liquid, solid or gaseous chemicals used

which the product is produced for the purpose of causing or permitting in manufacturing,

Economic Development

a chemical or physical change to occur in the materials as part of the processing fabricating mining, refining,

(Manufacture and Mining) metallurgical operations or research and

production process. This paragraph does not include chemicals that are

used or consumed in activities such as packaging, storage or development

transportation but does not affect any deduction for such chemicals that

§ 42-5159 (A) (35) is otherwise provided by this section. For purposes of this paragraph, NIA Use Tax

"printing" means a commercial printing operation and includes job

printing, engraving, embossing, copying and bookbinding.









Machinery, or equipment, used directly in manufacturing, processing,

§ 42-5061 (B) (1) 122,374,000 1967 Sales Tax Changed from 42-1312

fabricating, job printing, refining or metallurgical operations. The

Machinery or equipment used directly

terms "manufacturing", "processing", "fabricating", "job printing",

Economic Development in manufacturing,

"refining" and "metallurgical" as used in this paragraph refer to and

(Manufacture and Mining) processing, fabricating, job printing,

include those operations commonly understood within their ordinary refining or metallurgical operations

meaning. "Metallurgical operations" includes leaching, milling,

§ 42-5159 (B) (1) precipitating, smelting and refining. NIA 1967 Senate Bill 4, 1967 Use Tax









Unconstitutional. I

Leasing or renting semitrailers manufactured in Arizona, as defined in

Economic Development Leasing or renting semitrailers understand that there are no

§ 42-5071 (A) (5) section 28-101, to a person who holds a United States department of NIA Sales Tax

(Manufacture) manufactured in Arizona manufactures of semitrailers

transportation number for use in interstate commerce. in AZ,









Economic Development Gross income of publications derived

§ 42-5065 (B) (1) Gross income derived from advertising. 23,204,000 1985 Sales Tax

(Media) from advertising









Sales to a person who distributes

Distributes such printing, engraving, embossing or copying without printing, engraving, embossing

Economic Development

§ 42-5066 (B) (1) (b) consideration in connection with the publication of a newspaper or or copying without consideration in NIA Sales Tax

(Media) connection with the publication of a

magazine.

newspaper or magazine









Mining machinery, or equipment, used directly in the process of

extracting ores or minerals from the earth for commercial purposes,

Machinery or equipment used in mining

including equipment required to prepare the materials for extraction Economic Development

§ 42-5061 (B) (2) and in drilling for or 16,220,000 1967 Senate Bill 4, 1967 Sales Tax Rental of equipment

and handling, loading or transporting such extracted material to the (Mining)

extracting oil or gas from the earth

surface. "Mining" includes underground, surface and open pit

operations for extracting ores and minerals.







2. Leases or rentals of tangible personal property which, if it had been

purchased instead of leased or rented by the lessee, would have been Machinery or equipment used in mining

Economic Development

§ 42-5071 (B) (2) exempt under: and in drilling for or NIA 1967 Senate Bill 4, 1967 Sales Tax

(Mining) extracting oil or gas from the earth

(a) Section 42-5061, subsection A, paragraph 51.









§ 42-5061 (B) (2) Mining machinery, or equipment, used directly in the process of 16,220,000 1967 Senate Bill 4, 1967 Sales Tax

extracting ores or minerals from the earth for commercial purposes,

Machinery or equipment used in mining

including equipment required to prepare the materials for extraction Economic Development

and in drilling for or

and handling, loading or transporting such extracted material to the (Mining) extracting oil or gas from the earth

surface. "Mining" includes underground, surface and open pit

§ 42-5159 (B) (2) operations for extracting ores and minerals. NIA 1967 Senate Bill 4, 1967 Use Tax







A motor vehicle and any repair and replacement parts and tangible Ryder v. City of Phoenix,

Motor Vehicles and any TPP or repair

personal property becoming a part of such motor vehicle sold to a Economic Development Laws 1994, Chapter 328,

that becomes a part of the

§ 42-5061 (A) (42) motor carrier who is subject to a fee prescribed in title 28, chapter 16, (Industry Subsidy/Motor NIA 1994 1994 Sales Tax retroactive to July 1, 1982

motor vehicles sold to a licensed motor

article 4 [FN10] and who is engaged in the business of leasing or Vehicle) (date the motor carrier tax

operator that lease or rent the property

renting such property. was enacted.)





"Gross income" and "gross proceeds of sales" do not include goods,

wares or merchandise, or value thereof, returned by customers if the

sale price is refunded either in cash or by credit, nor the value of Economic Development Industry subsidy for auto-

§ 42-5001 (6) trade-ins NIA Sales Tax

merchandise traded in on the purchase of new merchandise when the (Motor Vehicles) dealers

trade-in allowance is deducted from the sales price of the new

merchandise before completion of the sale.







A motor vehicle and any repair and replacement parts and tangible Ryder v. City of Phoenix,

Motor Vehicles and any TPP or repair

personal property becoming a part of such motor vehicle sold to a Laws 1994, Chapter 328,

Economic Development that becomes a part of the

§ 42-5159 (A) (37) motor carrier who is subject to a fee prescribed in title 28, chapter 16, NIA 1994 1994 Use Tax retroactive to July 1, 1982

(Motor Vehicles) motor vehicles sold to a licensed motor

article 4 [FN9] and who is engaged in the business of leasing or (date the motor carrier tax

operator that lease or rent the property

renting such property. was enacted.)





18

Tax Exemption Spreadsheet (Economic Development)

Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Comments

Passed Ammended Tax









Leasing or renting a motor vehicle subject to and upon which the fee Economic Development

§ 42-5071 (B) (4) Leaseing/Renting cars NIA Sales Tax

has been paid under title 28, chapter 16, article 4. (Motor Vehicles)









19

Tax Exemption Spreadsheet (Economic Development)

Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Comments

Passed Ammended Tax



§ 42-5061 (B) (9) Railroad rolling stock, rails, ties and NIA 1967 Sales Tax

Railroad rolling stock, rails, ties and signal control equipment used Economic Development signal control equipment

directly to transport persons or property. (Railroad) used to transport persons or property for

§ 42-5159 (B) (9) hire NIA 1967 Use Tax







Business activity that is arranged by the person who is subject to tax

under this section and that is not taxable to the person conducting the

Economic Development

activity due to an exclusion, exemption or deduction under this section

§ 42-5073 (B) (5) (b) (Sale to the federal NIA Sales Tax

or section 42-5062, but the gross proceeds of sales or gross income to

government)

be deducted shall not exceed the consideration paid to the person

conducting the activity.





Economic Development Cut back on TPT collected

Sales made directly to the United States government or its departments

§ 42-5061 (K) (1) (Sale to the federal Sales to US Governement NIA 1956 Sales Tax on sale to Federal

or agencies by a manufacturer, modifier, assembler or repairer.

government) Governemnt









§ 42-5061 (K) (3) Overhead materials or other tangible personal property that is used in NIA Sales Tax See Motorola v. ADOR

performing a contract between the United States government and a Overhead materials or other TPP to a

Economic Development manufacturer, modifier,

manufacturer, modifier, assembler or repairer, including property used

(Sale to the federal assembler or repairer if performing a

in performing a subcontract with a government contractor who is a contract between the U S Government

government)

manufacturer, modifier, assembler or repairer, to which title passes to and the manufacturer Cut back on TPT collected

§ 42-5159 (A) (39) the government under the terms of the contract or subcontract. NIA 1988 2002 Use Tax on sale to Federal

Governemnt







Sales of overhead materials or other tangible personal property to a

manufacturer, modifier, assembler or repairer if the gross proceeds of Economic Development Cut back on TPT collected

§ 42-5061 (K) (4) sales or gross income derived from the property by the manufacturer, (Sale to the federal NIA 1988 HB(2059) 2003 Sales Tax on sale to Federal

modifier, assembler or repairer will be exempt under paragraph 3 of government) Governemnt

this subsection.







Economic Development Machinery or equipment used in mining

§ 42-5071 (B) (2) (c) (c) Section 42-5061, subsection K, paragraph 1. (Sale to the federal and in drilling for or NIA

government) extracting oil or gas from the earth









There shall be deducted from the tax base fifty per cent of the gross

Economic Development Cut back on TPT collected

proceeds or gross income from any sale of tangible personal property

§ 42-5061 (L) (Sale to the federal Sales to US Government NIA 1956 Sales Tax on sale to Federal

made directly to the United States government or its departments or Governemnt

government)

agencies, which is not deducted under subsection K of this section.





The gross proceeds of sales or gross income attributable to the

purchase of machinery, equipment or other tangible personal property Carries certain retail

that is exempt from or deductible from transaction privilege and use exemptions into prime

tax under: Economic Development contracting. Prior to this

§ 42-5075 (B) (9) (a) Section 42-5061, subsection A, paragraph 25 or 29. (Sale to the federal NIA 1998 1998 Sales Tax being enacted property

(b) Section 42-5061, subsection B. government) owner needed to enter into

(c) Section 42-5159, subsection A, paragraph 13, subdivision (a), (b), an agency agreement with

(c), (d), (e), (f), (i) or (j). contractor. See Brink.

(d) Section 42-5159, subsection B.







§ 42-5061 (B) (3) Tangible personal property sold to persons engaged in business NIA 1967 Senate Bill 4, 1967 Sales Tax

classified under the telecommunications classification and consisting of

central office switching equipment, switchboards, private branch Economic Development Certain equipment used in the

exchange equipment, microwave radio equipment and carrier (Telecommunications) telecommunications industry

equipment including optical fiber, coaxial cable and other transmission

§ 42-5159 (B) (3) media which are components of carrier systems. NIA 1967 Senate Bill 4, 1967 Use Tax









Wireless telecommunication equipment

Wireless telecommunications equipment that is held for sale or transfer as an inducement to enter

Economic Development

§ 42-5159 (A) (41) to a customer as an inducement to enter into or continue a contract for into or continue a contract for NIA Use Tax

(Telecommunications) telecommunication services or sales

telecommunications services that are taxable under section 42-5064.

commissions received









Sales of intrastate telecommunications services by a cable television

Intrastate telecommunications services

system as defined in section 9-505 or by a microwave television

Economic Development by a cable television

§ 42-5064 (A) (1) transmission system that transmits television programming to multiple 23,801,000 Sales Tax

(Telecommunications) system or by a microwave television

subscribers and that is operated pursuant to 47 Code of Federal transmission system

Regulations parts 21 and 74.







A direct broadcast satellite television or data transmission service that

operates pursuant to 47 Code of Federal Regulations parts 25 and 100

Economic Development Direct broadcast satellite television

§ 42-5064 (B) (1) (b) for use in its direct broadcast satellite television or data transmission NIA Sales Tax

(Telecommunications) services

operation by a facility described in section 42-5061, subsection B,

paragraph 16, subdivision (b).







Sales of direct broadcast satellite television services pursuant to 47

Code of Federal Regulations parts 25 and 100 by a direct broadcast Economic Development Services by direct broadcast satellite

§ 42-5064 (B) (4) NIA 1996 1996 Sales Tax

satellite television service that operates pursuant to 47 Code of Federal (Telecommunications) television services

Regulations parts 25 and 100.







20

Tax Exemption Spreadsheet (Economic Development)

Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Comments

Passed Ammended Tax





Tangible personal property that is used by either of the following to

receive, store, convert, produce, generate, decode, encode, control or

transmit telecommunications information:

§ 42-5061 (B) (16) (a) Any direct broadcast satellite television or data transmission service NIA 1996 1996 Sales Tax

that operates pursuant to 47 Code of Federal Regulations parts 25 and

100.

(b) Any satellite television or data transmission facility, if both of the

following conditions are met: TPP used by any direct broadcast

Economic Development

(i) Over two-thirds of the transmissions, measured in megabytes, satellite television or data American Sky Broadcasting

(Telecommunications) transmission service or facility

transmitted by the facility during the test period were transmitted to or

on behalf of one or more direct broadcast satellite television or data

transmission services that operate pursuant to 47 Code of Federal

Regulations parts 25 and 100.

(ii) Over two-thirds of the transmissions, measured in megabytes,

§ 42-5159 (B) (16) NIA 1997 1997 Use Tax

transmitted by or on behalf of those direct broadcast television or data

transmission services during the test period were transmitted by the

facility to or on behalf of those services.





Magazines or other periodicals or other

Magazines or other periodicals or other publications by this state to Economic Development

§ 42-5061 (A) (26) publications to encourage 17,000 Sales Tax

encourage tourist travel. (Tourism) tourist travel



§ 42-5065 (A) (2) NIA Sales Tax Publication classification

Sales of magazines or other periodicals or other publications by this Economic Development

Publications to encourage tourism

state to encourage tourist travel. (Tourism)

§ 42-5159 (A) (29) NIA Use Tax





Sales of tangible personal property by a nonprofit organization that is

exempt from taxation under section 501(c)(3), 501(c)(4) or 501(c)(6) TPP sold by a nonprofit organization

of the internal revenue code if the organization is associated with a Economic Development associated with a major league Laws 1990, Chapter 239,

§ 42-5061 (A) (30) NIA 1990 1990 Sales Tax

major league baseball team or a national touring professional golfing (Tourism) baseball team or a national touring Retroactive to 1/1/1986.

association and no part of the organization's net earnings inures to the professional golf association

benefit of any private shareholder or individual.





Sales of tangible personal property by a nonprofit organization that is

exempt from taxation under section 501(c)(3), 501(c)(4), 501(c)(6),

TPP sold by a nonprofit organization

501(c)(7) or 501(c)(8) of the internal revenue code if the organization Economic Development Laws 1990, Chapter 239,

§ 42-5061 (A) (32) associated with a rodeo featuring NIA 1990 Sales Tax

sponsors or operates a rodeo featuring primarily farm and ranch (Tourism) Retroactive to 7/1/1984

primarily farm and ranch animals

animals and no part of the organization's net earnings inures to the

benefit of any private shareholder or individual.





Laws 1990, Chapter 239,

§ 42-5074 (B) (5) Sales at a rodeo featuring primarily farm and ranch animals in this NIA 1990 Sales Tax Retroactive to 7/1/1985 -

state by a nonprofit organization that is exempt from taxation under § Restaurant sales

Economic Development

501(c)(3), 501(c)(4), 501(c)(6), 501(c)(7) or 501(c)(8) of the internal Entertainment for tourists

(Tourism)

revenue code and no part of the organization's net earnings inures to

the benefit of any private shareholder or individual. Laws 1990, Chapter 239,

§ 42-5159 (A) (15) (c) NIA 1990 Use Tax

Retroactive to 7/1/1986









Laws 1995, Chapter 267.

§ 42-5061 (A) (46) Tangible personal property sold to a person engaged in business and NIA 1995 1995 Sales Tax

Retroactive to July 1, 1990.

subject to tax under the transient lodging classification if the tangible

Personal hygiene products which are

personal property is a personal hygiene item or articles used by human Economic Development

furnished to and to be

beings for food, drink or condiment, except alcoholic beverages, which (Tourism) consumed by hotel occupant.

are furnished without additional charge to and intended to be

consumed by the transient during the transient's occupancy.

§ 42-5159 (A) (13) (k) NIA 1995 1995 Use Tax









The transient lodging classification is comprised of the business of

operating, for occupancy by transients, a hotel or motel, including an

inn, tourist home or house, dude ranch, resort, campground, studio or

bachelor hotel, lodging house, rooming house, apartment house,

dormitory, public or private club, mobile home or house trailer at a

fixed location or other similar structure, and also including a space, lot

Economic Development

§ 42-5070 (A) or slab which is occupied or intended or designed for occupancy by transient lodging NIA 1993 Sales Tax

(Tourism)

transients in a mobile home or house trailer furnished by them for such

occupancy. For purposes of this subsection "transient" means any

person who either at the person's own expense or at the expense of

another obtains lodging space or the use of lodging space on a daily or

weekly basis, or on any other basis for less than thirty consecutive

days.





Exhibition events in this state sponsored, conducted or operated by a

nonprofit organization that is exempt from taxation under section

501(c)(3), 501(c)(4) or 501(c)(6) of the internal revenue code if the

Economic Development

§ 42-5073 (A) (5) organization is associated with major league baseball teams or a Entertainememt for tourists NIA 1995 Sales Tax

(Tourism)

national touring professional golfing association and no part of the

organization's net earnings inures to the benefit of any private

shareholder or individual.





Operating or sponsoring rodeos that feature primarily farm and ranch

animals in this state and that are sponsored, conducted or operated by a

nonprofit organization that is exempt from taxation under section Economic Development

§ 42-5073 (A) (6) Entertainememt for tourists NIA 1988 2001 Sales Tax

501(c)(3), 501(c)(4), 501(c)(6), 501(c)(7) or 501(c)(8) of the internal (Tourism)

revenue code and no part of the organization's net earnings inures to

the benefit of any private shareholder or individual.









21

Tax Exemption Spreadsheet (Economic Development)

Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Comments

Passed Ammended Tax



Sales of admissions to intercollegiate football contests if the contests

are both:

(a) Operated by a nonprofit organization that is exempt from taxation

under section 501(c)(3) of the internal revenue code and no part of the Economic Development Admission to intercollegiate football

§ 42-5073 (A) (7) 630,000 Sales Tax

organization's net earnings inures to the benefit of any private (Tourism) contests

shareholder or individual.

(b) Not held in a multipurpose facility that is owned or operated by the

tourism and sports authority pursuant to title 5, chapter 8.







§ 42-5074 (B) (4) Sales by a nonprofit organization that is exempt from taxation under NIA Sales Tax Restaurant Classification

section 501(c)(3), 501(c)(4) or 501(c)(6) of the internal revenue code

if the organization is associated with a major league baseball team or a Economic Development

Enterttainment for tourists

national touring professional golfing association and no part of the (Tourism)

organization's net earnings inures to the benefit of any private

§ 42-5159 (A) (15) (b) NIA Use Tax

shareholder or individual.







Leasing or renting photographs, transparencies or other creative works

Economic Development

§ 42-5071 (A) (8) used by this state on internet web sites, in magazines or in other leasing/renting works for publications Sales Tax

(Tourism)

publications that encourage tourism.





A lease or rental of a mobile home or house trailer at a fixed location

or any other similar structure, and also including a space, lot or slab

Economic Development

§ 42-5070 (B) (2) which is occupied or intended or designed for occupancy by transients transient lodging NIA Sales Tax Residential

(Tourism)

in a mobile home or house trailer furnished by them for such

occupancy for thirty or more consecutive days.









The gross proceeds of sales or gross income derived from

memberships, including initiation fees, which provide for the right to

use a health or fitness establishment or a private recreational

establishment, or any portion of an establishment, including tennis and

other racquet courts at that establishment, for participatory purposes

for twenty-eight days or more and fees charged for use of the health or Private or group instructional activities;

membership and initiation

fitness establishment or private recreational establishment by bona fide Economic Development

§ 42-5073 (B) (1) fees for health clubs or private 17,280,000 1995 1996 Sales Tax

accompanied guests of members, except that this paragraph does not (Entertainment/Health) recreational establishments with

include additional fees, other than initiation fees, charged by a health memberships greater than 28 days

or fitness establishment or a private recreational establishment for

purposes other than memberships which provide for the right to use a

health or fitness establishment or private recreational establishment, or

any portion of an establishment, for participatory purposes for twenty-

eight days or more and accompanied guest use fees.









The gross proceeds of sales or gross income derived from membership

fees, including initiation fees, that provide for the right to use a

transient lodging recreational establishment, including golf courses and

tennis and other racquet courts at that establishment, for participatory

purposes for twenty-eight days or more, except that this paragraph Economic Development

§ 42-5073 (B) (3) Golf packages for groups 1995 1996 Sales Tax

does not include additional fees, other than initiation fees, that are (Entertainment/Tourism)

charged by a transient lodging recreational establishment for purposes

other than memberships and that provide for the right to use a transient

lodging recreational establishment or any portion of the establishment

for participatory purposes for twenty-eight days or more.









The gross proceeds of sales or gross income received from a contract

for constructing any lake facility development in a commercial

enhancement reuse district that is designated pursuant to section 9-

499.08 if the prime contractor maintains the following records in a

form satisfactory to the department and to the city or town in which the

property is located:

Income received from a contract for

(a) The certificate of qualification of the lake facility development

constructing a lake facility

§ 42-5075 (B) (8) issued by the city or town pursuant to section 9-499.08, subsection D. Economic Development NIA 1998 1998 Sales Tax Tempe Town Lake

development in a commercial

(b) All state and local transaction privilege tax returns for the period of enhancement reuse district

time during which the prime contractor received gross proceeds of

sales or gross income from a contract to construct a lake facility

development in a designated commercial enhancement reuse district,

showing the amount exempted from state and local taxation.

(c) Any other information that the department considers to be

necessary.







TPP which directly enters into or

Tangible personal property which is or directly enters into and

becomes an ingredient or part of cards

§ 42-5159 (A) (38) becomes an ingredient or component part of cards used as prescription Economic Development NIA 1995 Use Tax

used as prescription plan identification

plan identification cards. cards



§ 42-5061 (A) (8) and § 42-5159 (A)

or veterinarian profesion Economic Development Vet NIA Industry subsidy for vets

(16)





§ 42-5061 (A) (27) (c) (c) Incorporated or fabricated by the person into any lake facility NIA Sales Tax

designed specifically for

development in a commercial enhancement reuse district under

Economic Development Lake facility Tempe Town Lake

conditions prescribed for the deduction allowed by section 42-5075,

development

subsection B, paragraph 8.

§ 42-5159 (A) (13) (g) (iii) NIA Use Tax





22

Tax Exemption Spreadsheet (Economic Development)

Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Comments

Passed Ammended Tax



selling non-metal mining

(gravel, cola) to

§ 42-5072 (B) subsection and subsection K, paragraph 2 shall be deducted from the tax base. Economic Development Mining NIA Sales Tax Governement. Industry

subsidy.









Ryder v. City of Phoenix

Transporting for hire persons, freight or property by motor carriers

held this could be taxed so

§ 42-5062 (A) (1) subject to a fee prescribed in title 28, chapter 16, article 4 or by light Economic Development Transportation NIA Sales Tax legislature enacted an

motor vehicles subject to a fee under title 28, chapter 15, article 4. exemption.









(b) Section 42-5061, subsection B, except that a lease or rental of new Machinery or equipment used in mining

§ 42-5071 (B) (2) (b) machinery or equipment is not exempt pursuant to section 42-5061, Economic Development and in drilling for or NIA

subsection B, paragraph 13 if the lease is for less than two years. extracting oil or gas from the earth







Machinery or equipment used in research and development. In this

paragraph, "research and development" means basic and applied

research in the sciences and engineering, and designing, developing or Laws 1992, Chapter 238,

§ 42-5061 (B) (14) 5,216,000 1992 1992 Sales Tax

testing prototypes, processes or new products, including research and effective Jan. 1, 1993

development of computer software that is embedded in or an integral

part of the prototype or new product or that is required for machinery

or equipment otherwise exempt under this section to function Economic Development Scientific Research

effectively. Research and development do not include manufacturing

quality control, routine consumer product testing, market research,

sales promotion, sales service, research in social sciences or Laws 1992, Chapter 238,

§ 42-5159 (B) (14) psychology, computer software research that is not included in the NIA 1992 1992 Use Tax

effective Jan. 1, 1993

definition of research and development, or other nontechnological

activities or technical services.







Operating coin operated washing, Enacted by legislature after

11,792,000 Sales Tax

drying and dry cleaning machines Peck v. AZ. (1980?)

Operating coin operated washing, drying and dry cleaning machines or

§ 42-5071 (A) (4) coin operated car washing machines at establishments for the use of Economic Development

such machines.

Operating coin operated car washing Enacted by legislature after

1,043,000 Sales Tax

machines Peck v. AZ. (1980?)







(g) A person that is subject to tax under article 1 of this chapter by

reason of being engaged in business classified under the prime

contracting classification under section 42-5075, or a subcontractor

working under the control of a prime contractor, if the tangible

personal property is any of the following:

(i) Incorporated or fabricated by the contractor into a structure, project,

development or improvement in fulfillment of a contract.

(ii) Used in environmental response or remediation activities under

section 42-5075, subsection B, paragraph 6.

§ 42-5159 (A) (13) (g) and (k) (iii) Incorporated or fabricated by the person into any lake facility Economic Development Various activities NIA

development in a commercial enhancement reuse district under

conditions prescribed for the deduction allowed by section 42-5075,

subsection B, paragraph 8.

(k) A person engaged in business under the transient lodging

classification if the property is a personal hygiene item or articles used

by human beings for food, drink or condiment, except alcoholic

beverages, which are furnished without additional charge to and

intended to be consumed by the transient during the transient's

occupancy.





Total Reported 255,077,000









23

Tax Exemption Spreadsheet (Non-Profit)

Last Date

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Date Passed Sales Tax/Use Tax Comments

Ammended





Machinery or equipment used in mining

§ 42-5071 (B) (2) (a) Section 42-5061, subsection A, paragraph 25, 29 Non-Profit and in drilling for or

extracting oil or gas from the earth





Tangible personal property sold to:

(a) A qualifying hospital as defined in § 42-5001.

(b) A qualifying health care organization as defined in § 42- Sales Tax

5001 if the tangible personal property is used by the

organization solely to provide health and medical related

educational and charitable services.

TPP sold to a qualifying Hospital or a

(c) A qualifying health care organization as defined in § 42- NIA 1967

qualifying Health Care Organization

5001 if the organization is dedicated to providing educational,

§ 42-5061 (A) (25) therapeutic, rehabilitative and family medical education

training for blind, visually impaired and multihandicapped TPP sold to or purchased by Qualifying

children from the time of birth to age twenty-one. Community Health Centers and Health NIA Sales Tax

(d) A qualifying community health center as defined in § 42- Care Organizations

Non-Profit (health

5001. care)

(e) A nonprofit charitable organization that has qualified under TPP Sold to a Non-profit Organization

§ 501(c)(3) of the internal revenue code and that regularly which regularly serves meals NIA

serves meals to the needy and indigent on a continuing basis at to the needy and indigent

no cost.

(f) For taxable periods beginning from and after June 30, 2001,

a nonprofit charitable organization that has qualified under §

501(c)(3) of the internal revenue code and that provides Purchase made by a residential care

Laws 1993, chapter 199

residential apartment housing for low income persons over institution that is operated

§ 42-5159 (A) (13) NIA 2001 Use Tax added qualifying community

sixty-two years of age in a facility that qualifies for a federal in conjunction with licensed nursing health centers,

housing subsidy, if the tangible personal property is used by care institution

the organization solely to provide residential apartment

housing for low income persons over sixty-two years of age in



Gross proceeds of sales or gross income derived from sales to:

(a) Qualifying hospitals as defined in section 42-5001.

(b) A qualifying health care organization as defined in section Non-Profit (Health

§ 42-5063 (C) (3) Sales to qualifying hospitals NIA Sales Tax

42-5001 if the tangible personal property is used by the Care)

organization solely to provide health and medical related

educational and charitable services.





Gross proceeds of sales or gross income derived from sales of

personal property to:

(a) Qualifying hospitals as defined in section 42-5001.

Non-Profit (Health

§ 42-5065 (B) (2) (b) A qualifying health care organization as defined in section Sale of TPP to qualifying hospitals NIA Sales Tax Publications

Care)

42-5001 if the tangible personal property is used by the

organization solely to provide health and medical related

educational and charitable services.



Sales of personal property to:

(a) Qualifying hospitals as defined in section 42-5001.

(b) A qualifying health care organization as defined in section Non-Profit (Health

§ 42-5066 (B) (3) Sale of TPP to qualifying hospitals NIA Sales Tax

42-5001 if the tangible personal property is used by the Care)

organization solely to provide health and medical related

educational and charitable services.





The tax base for the pipeline classification is the gross

proceeds of sales or gross income derived from the business,

Non-Profit (Health

§ 42-5067 (B) but the taxpayer shall deduct from the tax base the gross Pipelines for hospitals NIA Sales Tax

Care)

proceeds of sales or gross income derived from pipeline

services to:







Non-Profit (Health

§ 42-5074 (B) (7) Sales to qualifying hospitals as defined in § 42-5001. Restaurant sales to qualifying hospitals NIA Sales Tax

Care)





Sales to a qualifying health care organization as defined in

section 42- 5001 if the tangible personal property is used by Non-Profit (Health

§ 42-5074 (B) (8) Sales to qualifying hospitals NIA Sales Tax

the organization solely to provide health and medical related Care)

educational and charitable services.







Operating a convalescent home or facility, home for the aged,

hospital, jail, military installation or fraternity or sorority house

or operating any structure exclusively by an association,

§ 42-5070 (B) (1) institution, governmental agency or corporation for religious, Non-profit Operation of qualifying facility NIA Sales Tax

charitable or educational purposes, if no part of the net

earnings of the association, corporation or other entity inures to

the benefit of any private shareholder or individual.









Activities or projects of bona fide religious or educational Admission to amusements sponsored

§ 42-5073 (A) (1) Non-profit $18,068,000 Sales Tax

institutions. by religious or educational institutions.









A musical, dramatic or dance group or a botanical garden,

Musical, Dramatic or dance groups or a

museum or zoo that is qualified as a nonprofit charitable

Botanical Garden,

§ 42-5073 (A) (4) organization under section 501(c)(3) of the United States Non-profit $5,157,000 1994 Sales Tax

Museum or zoo that qualifies as a

internal revenue code and if no part of its net income inures to

nonprofit charitable organization

the benefit of any private shareholder or individual.



24

Tax Exemption Spreadsheet (Non-Profit)

Last Date

Statute/Exclusion Statute text Category Category Short Description Dollar Amount Date Passed Sales Tax/Use Tax Comments

Ammended



Activities and events of, or fees received by, a nonprofit

organization that is exempt from taxation under section

501(c)(6) of the internal revenue code if the organization

§ 42-5073 (A) (9) Non-profit Fundraising events NIA 2001 Sales Tax

produces, organizes or promotes cultural or civic related

festivals or events and no part of the organization's net earnings

inures to the benefit of any private shareholder or individual.







Sales by a congressionally chartered veterans organization of

Sales by a congressionally chartered

§ 42-5074 (B) (2) food or drink prepared for consumption on the premises Non-profit NIA Sales Tax

veterans organization of food or drink

leased, owned or maintained by the organization.









Sales by churches, fraternal benefit societies and other Sales by churches, fraternal benefit

nonprofit organizations, as these organizations are defined in societies and other nonprofits which do

§ 42-5074 (B) (3) the federal internal revenue code (26 United States Code § Non-profit not regularly engage or continue in the NIA Sales Tax

501), which do not regularly engage or continue in the restaurant business for the purpose of

restaurant business for the purpose of fund-raising. fund raising.









For taxable periods beginning from and after June 30, 2001,

the gross proceeds of sales or gross income derived from a

contract entered into for the construction of a residential

apartment housing facility that qualifies for a federal housing

§ 42-5075 (B) (13) Non-profit Low income housing contracts NIA 2001? 2001? Sales Tax

subsidy for low income persons over sixty-two years of age

and that is owned by a nonprofit charitable organization that

has qualified under section 501(c)(3) of the internal revenue

code.





The gross proceeds of sales or gross income derived from a

contract entered into for the construction of a domestic

§ 42-5075 (B) (16) violence shelter that is owned and operated by a nonprofit Non-profit Domestic violence shelter NIA Sales Tax

charitable organization that has qualified under section

501(c)(3) of the internal revenue code.







§ 42-5159 (A) (32) (b) Public educational institutions. Non-profit Public educational institutions. NIA 1992 Use Tax





Sales of tangible personal property by any nonprofit

organization organized and operated exclusively for charitable

§ 42-5061 (A) (4) Non-Profit Sales by a non-profit NIA Sales Tax Retail

purposes and recognized by the United States internal revenue

service under § 501(c)(3) of the internal revenue code.





Sales by any nonprofit organization organized and operated

exclusively for charitable purposes and recognized by the

§ 42-5074 (B) (6) Non-Profit Sales by a non-profit NIA Sales Tax Restaurant

United States internal revenue service under § 501(c)(3) of the

internal revenue code.





Tangible personal property purchased in this state by a

nonprofit charitable organization that has qualified under TPP purchased by a nonprofit

section 501(c)(3) of the United States internal revenue code charitable organization that uses such

§ 42-5061 (A) (29) Non-profit NIA Sales Tax

and that engages in and uses such property exclusively for property for training for mentally or

training, job placement or rehabilitation programs or testing for physically handicapped persons

mentally or physically handicapped persons.





A nonprofit charitable organization that has qualified under §

501(c)(3) of the United States internal revenue code [FN4] and

Property used by a qualifying non-profit

§ 42-5159 (A) (13) (f) that engages in and uses such property exclusively for training, Non-Profit NIA Use Tax

for training/rehabilitation/testing

job placement or rehabilitation programs or testing for

mentally or physically handicapped persons.









§ 42-5061 (A) (53) NIA Sales Tax

Sales of tangible personal property by a nonprofit organization

that is exempt from taxation under § 501(c)(6) of the internal

revenue code if the organization produces, organizes or

Non-profit Sales by a non-profit

promotes cultural or civic related festivals or events and no

part of the organization's net earnings inures to the benefit of

any private shareholder or individual.

§ 42-5159 (A) (48) NIA Use Tax









Reported Total $23,225,000









25

Tax Exemption Spreadsheet (Basic Needs)

Category Short Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Dollar Amount Comments

Description Passed Ammended Tax



Laws 1991, Chapter

§ 42-5061 (A) (8) Drugs and medical oxygen, including delivery hose, mask or NIA 1991 Sales Tax

200

tent, regulator and tank, on the prescription of a member of

Basic Needs

the medical, dental profession who is licensed by law to

administer such substances. Laws 1991, Chapaer

§ 42-5159 (A) (16) NIA 1991 Use Tax

201







§ 42-5061 (A) (9) NIA Sales Tax

Prosthetic appliances, as defined in § 23-501, prescribed or

recommended by a person who is licensed, registered or

otherwise professionally credentialed as a physician, dentist, Basic Needs Prosthetic Appliances

podiatrist, chiropractor, naturopath, homeopath, nurse or

§ 42-5159 (A) (17) optometrist. NIA Use Tax









Laws 1992, Chapter

§ 42-5061 (A) (10) NIA 1992 Sales Tax

135

Insulin, Insulin Syringe and

Insulin, insulin syringes and glucose test strips. Basic Needs

Glucose Test Strips

§ 42-5159 (A) (19) NIA 1992 Use Tax





§ 42-5061 (A) (11) $7,559,000 Sales Tax

Prescription eyeglasses or contact lenses. Basic Needs Eyeglasses and Contact Lenses

§ 42-5159 (A) (18) NIA Use Tax



§ 42-5061 (A) (12) NIA Sales Tax

Hearing aids as defined in § 36-1901. Basic Needs Hearing Aids

§ 42-5159 (A) (20) NIA Use Tax





Durable medical equipment which has a centers for medicare Retroactive to

§ 42-5061 (A) (13) and medicaid services common procedure code, is designated NIA 1992 Sales Tax 1/1/1980. See TPP

reimbursable by medicare, is prescribed by a person who is 93-1

licensed under title 32, chapter 7, 8, 13, 14, 15, 17 or 29, can

Basic Needs Durable medical equipment

withstand repeated use, is primarily and customarily used to

serve a medical purpose, is generally not useful to a person in Retroactive to

§ 42-5159 (A) (21) the absence of illness or injury and is appropriate for use in NIA 1992 Use Tax 1/1/1980. See TPP

93-2

the home.



Laws 1980, 2nd Special

§ 42-5061 (A) (15) $429,954,000 1980 Session, Chapter 8

Sales Tax

Food, as provided in and subject to the conditions of article 3

Basic Needs Food for home consumption

of this chapter [FN4] and § 42-5074.

§ 42-5159 (A) (22) NIA Use Tax





Laws 1993, Chapter

Machinery, Equipment and 56, Effective Sept.

§ 42-5061 (A) (34) Machinery, equipment, technology or related supplies that are NIA 1993 1993 Sales Tax

30, 1993 (See TPR

Certain Supplies used to Assist

only useful to assist a person who is physically disabled as 93-43.)

the

defined in § 46-191, has a developmental disability as defined Basic Needs

physically or developmentally

in § 36-551 or has a head injury as defined in § 41-3201 to be disabled or those persons with

§ 42-5159 (A) (34) more independent and functional. head injuries. NIA Use Tax









Ambulances or ambulance services provided under title 48 or

certified pursuant to title 36, chapter 21.1 or provided by a

Ambulance or Ambulance

§ 42-5062 (A) (3) city or town in a county with a population of less than one Basic Needs NIA Sales Tax

service

hundred fifty thousand persons as determined in the most

recent United States decennial census.





Public transportation Services

Public transportation program services for the dial-a-ride for Dial-A-Ride programs and

§ 42-5062 (A) (4) Basic Needs NIA Sales Tax

programs and special needs transportation services. special needs transportation

services









§ 42-5102 (A) (1) A retailer who conducts an eligible grocery business. Basic Needs Food for home consumption. NIA 1980 1997 Use Tax









Food or Drink consumed on Restaurant

§ 42-5074 (B) (9) Sales of food, drink and condiment for consumption within the the premises of a jail, prison or NIA 1994 1995 Sales Tax

classification

premises of any prison, jail or other institution under the any other institution and

jurisdiction of the state department of corrections, the Basic Needs nonprofit organizations that

department of public safety, the department of juvenile regularly serve meals to the

corrections or a county sheriff. needy and indigent on a

Restaurant

§ 42-5159 (A) (36) continuing basis NIA 1994 1995 Use Tax

classification









A retailer who conducts a business whose primary business is

not the sale of food but who sells food which is displayed,

§ 42-5102 (A) (2) Basic Needs Food for home consumption. NIA 1980 1997 Use Tax

packaged and sold in a similar manner as an eligible grocery

business.





A retailer who sells food and does not provide or make

§ 42-5102 (A) (3) available any facilities for the consumption of food on the Basic Needs Food for home consumption. NIA 1980 1997 Use Tax

premises.



26

Tax Exemption Spreadsheet (Basic Needs)

Category Short Date Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Dollar Amount Comments

Description Passed Ammended Tax





A retailer medical oxygen, including delivery hose, mask or

Drugs and who conducts a delicatessen business either from a

counter which and tank, on the the place and cash register

tent, regulator is separate from prescription of a member of

Basic Needs

the medical, dental professionor from licensed by law to two

where taxable sales are made who is a counter which has

administer such substances. to record taxable and tax

cash registers which are used

§ 42-5102 (A) (4) Basic Needs Food for home consumption. NIA 1980 1997 Use Tax

exempt sales or a retailer who conducts a delicatessen

business and who uses a cash register which has at least two

tax computing keys which are used to record taxable and tax

exempt sales.







The taxes imposed by this chapter do not apply to the gross

proceeds of sales or gross income from sales of food by a state

university or community college or its designee on its

§ 42-5102 (B) Basic Needs Food for home consumption. NIA 1980 1997 Use Tax

campuses to students using a validated meal ticket or to

patients purchasing or consuming food at the Arizona health

sciences center.





A regularly organized private or parochial school that offers

an educational program for grade twelve or under which may Food provided in private school

§ 42-5102 (C) (1) Basic Needs NIA 1980 1997 Use Tax

be attended in substitution for a public school pursuant to setting

section 15-802.







A child care facility that is licensed under section 36-882 or a Food provided in child care

§ 42-5102 (C) (2) Basic Needs $9,931,000 1980 1997 Use Tax

child care group home certified under section 36-897.01. setting







A facility which provides on a regular basis care and

supervision of persons who, because of age or a mental or

Food provided in disabled care

§ 42-5102 (C) (3) physical condition, are incapable of caring for themselves and Basic Needs $45,724,000 1980 1997 Use Tax

stting

where they are unaccompanied by their custodians or

guardians for periods of less than twenty-four hours a day.





An organization which is tax exempt under section 501(c)(3)

Food provided in charity

§ 42-5102 (C) (4) of the internal revenue code and which provides the articles to Basic Needs NIA 1980 1997 Use Tax

setting

persons with a nominal charge or without a monetary charge.





A prison, jail or other institution under the jurisdiction of the

state department of corrections, the department of public

§ 42-5102 (C) (5) Basic Needs Food for home consumption. NIA 1980 1997 Use Tax

safety, the department of juvenile corrections or a county

sheriff for consumption on the premises.



Machinery or equipment used

in mining and in drilling for or

§ 42-5071 (B) (2) (a) Section 42-5061, subsection A, paragraph 8, 9, 12, 13, Basic Needs NIA

extracting oil or gas from the

earth



Reported Total $493,168,000









27

Tax Exemption Spreadsheet (Tax on Tax)

Sales

Category Short Dollar Date Last Date

Statute/Exclusion Statute text Category Tax/Use Comments

Description Amount Passed Ammended

Tax

In computing the tax base, gross proceeds of

sales or gross income from retail sales of

Tax on heavy trucks and Tax on

§ 42-5061 (F) heavy trucks and trailers does not include any NIA Sales Tax

Tax trailers federal tax

amount attributable to federal excise taxes

imposed by 26 United States Code § 4051.



In computing the tax base, gross proceeds of Portion of sales

sales or gross income from the sale of use fuel, price of use fuel

Tax on

§ 42-5061 (G) as defined in § 28-5601, does not include any that reflects the NIA Sales Tax

Tax

amount attributable to federal excise taxes federal

imposed by 26 United States Code § 4091. excise tax









The waste tire disposal fee imposed pursuant Tax on waste tire disposal

§ 42-6004 (E) (2) NIA Sales Tax

to § 44-1302. Tax fee









Total Reported NIA

Tax Exemption Spreadsheet (Federal Preemption)

Category Short Dollar Last Date Sales Tax/Use

Statute/Exclusion Statute text Category Date Passed Comments

Description Amount Ammended Tax

Makes sure use tax is the same

as TPT for the purchasers of

utility services from out-of-state

Tangible personal property that is excluded, exempt or

§ 42-5159 (A) (46) Other NIA 2002 Use Tax businesses. Required unded

deductible from transaction privilege tax pursuant to § 42-5063.

commerce clause. See

Haliburton Oil. (US Supreme

Court.)





Federal preemption. State

§ 42-5061 (A) (24) NIA 1967 Sales Tax

cannot tax.

Tangible personal property sold in interstate or foreign

Other (federal TPT sold in interstate

commerce if prohibited from being so taxed by the Constitution

preemption) commerce

of the United States or the constitution of this state.

Federal preemption. State

§ 42-5159 (A) (3) NIA 1967 Use Tax

cannot tax.









The business of transporting for hire persons traveling in air

Other (federal

§ 42-5062 (A) (2) commerce by aircraft if taxation of the business is preempted transportation NIA Sales Tax

preemption)

by federal law.









Transporting freight or property for hire by a railroad operating

exclusively in this state if the transportation comprises a portion

Gross proceeds for

of a single shipment of freight or property, involving more than

transporting freight or

one railroad, either from a point in this state to a point outside

property by an

this state or from a point outside this state to a point in this See Southern Pacific v. State

Other (federal exclusively Arizona

§ 42-5062 (A) (5) state. For purposes of this paragraph, "a single shipment" NIA 1999 1999 Sales Tax (2002). Court of Appeals held

preemption) railroad for portions

means the transportation that begins at the point at which one that the state can't tax this.

of single shipments

of the railroads first takes possession of the freight or property

involving other

and continues until the point at which one of the railroads

railroads

relinquishes possession of the freight or property to a party

other than one of the railroads.









§ 42-5061 (A) (16) NIA Sales Tax

Items purchased with United States department of agriculture

food stamp coupons issued under the food stamp act of 1977

Other (federal Federal preemption. State

(P.L. 95-113; 91 Stat. 958) [FN5] or food instruments issued Food Stamps

preemption) cannot tax.

under § 17 of the child nutrition act (P.L. 95-627; 92 Stat.

3603; P.L. 99-661, § 4302; 42 United States Code § 1786).

§ 42-5159 (A) (23) NIA Use Tax







Internet access

Sales of internet access services to the person's subscribers and Other (federal

§ 42-5064 (A) (2) services (federal NIA 2002 Sales Tax Internet tax freedom act.

customers. preemption)

moratorium)



Total Reported 29 NIA

Tax Exemption Spreadsheet (Other)

Category Short Last Date

Statute/Exclusion Statute text Category Dollar Amount Date Passed Sales Tax/Use Tax Comments

Description Ammended





Gross proceeds from

The gross proceeds of sales or gross income derived from contracts contracts to perform post-

§ 42-5075 (B) (17) to perform postconstruction treatment of real property for termite Other construction treatment of NIA Sales Tax

and general pest control, including wood destroying organisms. real property for termite and

general pest control







§ 42-5061 (A) (20) $14,741,000 Sales Tax Intangible, Exclusion



Lottery tickets or shares pursuant to title 5, chapter 5, article 1. Other Arizona Lottery tickets

§ 42-5159 (A) (27) NIA Use Tax









§ 42-5061 (A) (48) Sales of materials that are purchased by or for publicly funded NIA Sales Tax

Printed, photographic,

libraries including school district libraries, charter school libraries,

electronic or digital media

community college libraries, state university libraries or federal,

Other materials for

state, county or municipal libraries for use by the public as follows: use in publicly funded

(a) Printed or photographic materials, beginning August 7, 1985. libraries

(b) Electronic or digital media materials, beginning July 17, 1994.

§ 42-5159 (A) (12) NIA 1997 Use Tax









Sales of job printing, engraving, embossing and copying for use

outside this state if the materials are shipped or delivered out of this

§ 42-5066 (B) (2) Other job printing etc. NIA 1994 Sales Tax

state regardless of where title to the materials passes or their free on

board point.





Private or group instructional activities. For purposes of this

paragraph, "private or group instructional activities" includes, but is Private or group

§ 42-5073 (A) (2) Other NIA 1994 1994 Sales Tax

not limited to, performing arts, martial arts, gymnastics and aerobic instructional activities

instruction.









Enacted after Dennis Development v.

§ 42-5075 (B) (1) The sales price of land, which shall not exceed the fair market value. Other sale price of land NIA Sales Tax

ADOR. Most cities tax the land.









Reimbursements by the lessee to the lessor of a motor vehicle for

payments by the lessor of the applicable fees and taxes imposed by

sections 28-2003, 28-2352, 28-2402, 28-2481 and 28-5801, title 28,

§ 42-5071 (B) (1) Other Motor Vehicle NIA Sales Tax Motor Carrier

chapter 15, article 2 and article IX, section 11, Constitution of

Arizona, to the extent such amounts are separately identified as such

fees and taxes and are billed to the lessee.







The sales price of furniture, furnishings, fixtures, appliances, and

attachments that are not incorporated as component parts of or

attached to a manufactured building or the setup site. The sale of unattached components of These transactions are really retail sales

§ 42-5075 (B) (3) Other NIA Sales Tax

such items may be subject to the taxes imposed by article 1 of this manufactured bldg. so are taxed under that classification.

chapter separately and distinctly from the sale of the manufactured

building.









30

Tax Exemption Spreadsheet (Other)

Category Short Last Date

Statute/Exclusion Statute text Category Dollar Amount Date Passed Sales Tax/Use Tax Comments

Description Ammended









[sales of vehicles to] (b) An enrolled member of an Indian tribe who

§ 42-5061 (A) (28) (b) Other Sale of a motor vehicle NIA Sales Tax

resides on the Indian reservation established for that tribe.









Revenues received by a municipally owned utility in the form of fees

charged to persons constructing residential, commercial or industrial

developments or connecting residential, commercial or industrial

§ 42-5063 (C) (1) Other municipally owned utility NIA Sales Tax

developments to a municipal utility system or systems if the fees are

segregated and used only for capital expansion, system enlargement

or debt service of the utility system or systems.









Revenues received by any person or persons owning a utility system

in the form of reimbursement or contribution compensation for

property and equipment installed to provide utility access to, on or any person owning a utility

§ 42-5063 (C) (2) Other NIA Sales Tax

across the land of an actual utility consumer if the property and system

equipment become the property of the utility. This deduction shall

not exceed the value of such property and equipment.







§ 42-5061 (A) (37) NIA 1994 Sales Tax HB 2157 (1994) Retroactive

Paper machine clothing, such as forming fabrics and dryer felts, sold Paper machine clothing used

to a paper manufacturer and directly used or consumed in paper Other or consumed in paper

manufacturing. manufacturing

§ 42-5159 (A) (30) NIA 1993 1993 Use Tax Laws 1993, Chapter 258







End user common line

End user common line charges established by federal charges and carrier access

§ 42-5064 (B) (2) communications commission regulations (47 Code of Federal Other charges established by NIA Sales Tax

Regulations section 69.104(a)). federal Communications

regulations





Carrier access charges established by federal communications

§ 42-5064 (B) (3) commission regulations (47 Code of Federal Regulations sections Other carrier access NIA Sales Tax

69.105(a) through 69.118).



The gross proceeds of sales or gross income that is derived from a

contract entered into for the installation, assembly, repair or

maintenance of machinery, equipment or other tangible personal

property that is deducted from the tax base of the retail classification

pursuant to section 42-5061, subsection B, or that is exempt from

use tax pursuant to section 42-5159, subsection B, and that does not

become a permanent attachment to a building, highway, road,

railroad, excavation or manufactured building or other structure,

Gross proceeds from a

project, development or improvement. If the ownership of the realty

contract to install, assemble,

is separate from the ownership of the machinery, equipment or

repair or

§ 42-5075 (B) (7) tangible personal property, the determination as to permanent Other NIA 1997 1997 Sales Tax See Brink V. ADOR

maintain machinery that

attachment shall be made as if the ownership were the same. The does not become

deduction provided in this paragraph does not include gross permanently attached.

proceeds of sales or gross income from that portion of any

contracting activity which consists of the development of, or

modification to, real property in order to facilitate the installation,

assembly, repair, maintenance or removal of machinery, equipment

or other tangible personal property that is deducted from the tax

base of the retail classification pursuant to section 42-5061,

subsection B or that is exempt from use tax pursuant to section 42-

5159, subsection B. For purposes of this paragraph, "permanent









31

Tax Exemption Spreadsheet (Other)

Category Short Last Date

Statute/Exclusion Statute text Category Dollar Amount Date Passed Sales Tax/Use Tax Comments

Description Ammended





Buses or other urban mass transit vehicles which are used directly to

transport persons or property for hire or pursuant to a Buses or other urban mass

§ 42-5061 (B) (11) NIA Sales Tax

transit vehicles used to

governmentally adopted and controlled urban mass transportation

transport

program and which are sold to bus companies holding a federal

Other persons for hire or pursuant

certificate of convenience and necessity or operated by any city,

to a governmentally adopted

town or other governmental entity or by any person contracting with and controlled urban mass

such governmental entity as part of a governmentally adopted and transportation program

§ 42-5159 (B) (11) controlled program to provide urban mass transportation. NIA Use Tax









Activities engaged in by the Arizona exposition and state fair board Events sponsored by the

§ 42-5071 (A) (2) or county fair commissions in connection with events sponsored by Other Arizona Coliseum & NIA Sales Tax

such entities. Exposition Board









The operation or sponsorship of events by the Arizona exposition

§ 42-5073 (A) (3) Other sponsorship of events NIA Sales Tax

and state fair board or county fair commissions.







Leasing or renting aircraft

Leasing or renting aircraft, flight simulators or similar training

or training equipment by a

equipment to students or staff by nonprofit, accredited educational

§ 42-5071 (A) (7) Other non-profit NIA 2001 2001 Sales Tax

institutions that offer associate or baccalaureate degrees in aviation

school offering aviation and

or aerospace related fields. aerospace degrees









Activities and events of, or fees and assessments received by, a

homeowners organization from persons who are members of the

organization or accompanied guests of members. For purposes of

this paragraph, "homeowners organization" means a mandatory

membership organization comprised of owners of residential

property within a specified residential real estate subdivision Fees and assessments

§ 42-5073 (A) (8) development or similar area and established to own property for the Other received by a homeowners NIA 1996 1996 Sales Tax

benefit of its members where both of the following apply: organization

(a) No part of the organization's net earnings inures to the benefit of

any private shareholder or individual.

(b) The primary purpose of the organization is to provide for the

acquisition, construction, management, maintenance or care of

organization property.







Sales made directly to a manufacturer, modifier, assembler or

repairer if such sales are of any ingredient or component part of

Cut back on TPT collected on sale to Federal

§ 42-5061 (K) (2) products sold directly to the United States government or its Other Sales to US Government NIA 1956 Sales Tax Governemnt

departments or agencies by the manufacturer, modifier, assembler or

repairer.





State universities or affiliated organizations of a state university if no

§ 42-5159 (A) (32) (c) part of the organization's net earnings inures to the benefit of any Other (education) State University NIA Use Tax

private shareholder or individual.









32

Tax Exemption Spreadsheet (Other)

Category Short Last Date

Statute/Exclusion Statute text Category Dollar Amount Date Passed Sales Tax/Use Tax Comments

Description Ammended







§ 42-5061 (A) (19) Articles of food, drink or condiment and accessory tangible personal NIA Sales Tax

property to a school district if such articles and accessory tangible

Food used in School

personal property are to be prepared and served to persons for Other (education)

Lunches

consumption on the premises of a public school within the district

during school hours.

§ 42-5159 (A) (26) NIA Use Tax







§ 42-5061 (A) (17) Textbooks that are required NIA Sales Tax bookstores near universities seeking tax

Textbooks by any bookstore that are required by any state university

Other (education) by A state university or parity with campus bookstores which do

or community college. community college not tax books.

§ 42-5159 (A) (28) NIA Use Tax





Motor vehicles removed

from inventory and provided

Charitable or educational institutions that are exempt from taxation to charitable or educational

§ 42-5159 (A) (32) (a) Other (education) NIA 1992 Use Tax cars for coaches

under § 501(c)(3) of the internal revenue code. institutions or State

Universities or their

affiliated organizations









Electric services to a retail

Sales of ancillary services, electric distribution services, electric

electric customer who is

generation services, electric transmission services and other services Laws 1999, Retroactive to tax periods

located

§ 42-5063 (B) (4) that are related to providing electricity to a retail electric customer Other (out-of-state) NIA 1999 1999 Sales Tax beginning from and after December 31,

outside this state for

who is located outside this state for use outside this state if the 1998

delivery and use outside the

electricity is delivered to a point of sale outside this state. state







Sales to Nonresidents for

Sales to nonresidents of this state for use outside this state if the subject to abuse. Questionable whether

use outside Arizona if the

§ 42-5061 (A) (14) vendor ships or delivers the tangible personal property out of this Other (out-of-state) NIA Sales Tax tourists are actually incentivized to make

property is shipped or

state. purchases because of this provision

delivered outside the state





Sales of motor vehicles at auction to nonresidents of this state for use Motor vehicles at auction to

outside this state if the vehicles are shipped or delivered out of this nonresidents of this state for Laws 1995, Chapter 267. Retroactive to

§ 42-5061 (A) (45) Other (out-of-state) NIA 1995 1995 Sales Tax

state, regardless of where title to the motor vehicles passes or its free use July 1, 1990.

on board point. outside this state





TPP shipped or delivered

Sales of tangible personal property that is shipped or delivered

directly to a foreign country

§ 42-5061 (A) (35) directly to a destination outside the United States for use in that Other (out-of-state) NIA 1993 Sales Tax NAFTA, Laws 1993, Chapter 118

for use in

foreign country. that country









§ 42-5061 (B) (6) NIA 1967 1998 Sales Tax

Pipes or valves four inches

Pipes or valves four inches in diameter or larger used to transport oil,

in diameter used to transport

natural gas, artificial gas, water or coal slurry, including compressor broad based exemption for pipes

Other (Pipelines) oil,

units, regulators, machinery and equipment, fittings, seals and any typically used in some industry

natural gas, artificial gas,

other part that is used in operating the pipes or valves. water or coal slurry

§ 42-5159 (B) (6) NIA 1967 1998 Use Tax









Reported Total $14,741,000









33