Decisions

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

Document Type	Category	Document ID	Description	Tags	Decision Date
Decisions	Transaction Privilege and Use Taxes	201400197-S	Subscription income from online database was subject to transaction privilege tax under the state and city personal property rental classifications.	Director	10/27/2015
Decisions	Transaction Privilege and Use Taxes	201300197-S	Receipts from excavation, forest clearing and road construction were taxable prime contracting receipts.	Director	12/03/2014
Decisions	Transaction Privilege and Use Taxes	201200247-S	Taxation of the business of providing and servicing portable toilet containers.	Director	11/19/2013
Decisions	Transaction Privilege and Use Taxes	201000178-S	Nexus for transaction privilege tax	Director	08/01/2011
Decisions	Transaction Privilege and Use Taxes	200900059-S	Providing prewritten or “canned” computer software, whether or not characterized as a license agreement is a taxable retail sale. Nexus can be created through independent representatives who solicit sales. Interest abatement denied.	Director	01/21/2011
Decisions	Transaction Privilege and Use Taxes	200900113-S	Taxpayer owes use tax on a trailer because staying in the trailer two nights as he was bringing the trailer to Arizona does not rise to the level of “first actual use” and does not qualify as a bone fide use outside Arizona.	Director	08/18/2010
Decisions	Transaction Privilege and Use Taxes	200900009-S	Proceeds for work on a pipeline are taxable under prime contracting because the pipeline is permanently attached.	Director	07/26/2010
Decisions	Transaction Privilege and Use Taxes	200900056-S	Restaurant classification, definition of delicatessen business, sales of food for consumption off the premises, separate lines of business.	Director	05/17/2010
Decisions	Transaction Privilege and Use Taxes	200800211-S	Receipts from software support, updates and new releases for combined fee were taxable under the retail classification and were not exempt under the machinery and equipment exemption. Editing software used by newspaper publisher did not qualify as machinery and equipment used directly in manufacturing, processing, fabricating or job printing.	Director	01/22/2010
Decisions	Transaction Privilege and Use Taxes	200700222‑S	RV Dealership failed to prove out-of- state residency and residency on reservations for Native Americans for various sales of RVs and therefore was not entitled to exemptions. In some cases there was no Form 5000, in other cases there was a Form 5000, but the contradictory evidence held by the Dealership demonstrated the Dealership did not accept the Forms in good faith.	Director	06/15/2009
Decisions	Transaction Privilege and Use Taxes	200800088-S	Use tax is due on watercraft (boat) bought with the intent to use in Arizona and then brought into and used Arizona. Taxpayer’s test driving watercraft was not a first use out of state.	Director	04/24/2009
Decisions	Transaction Privilege and Use Taxes	200700085-S	Taxpayer was a prime contractor subject to the transaction privilege tax on his entire fees where he was hired as a “construction manager” or “advisor” to use his contracting knowledge to supervise or coordinate several construction projects, as well as doing some construction himself. Where Taxpayer was one of the persons on the title of the property on which he oversaw construction, he was liable for use tax on the items he purchased from retailers who knew him to be a contractor and did not include a charge for tax on the purchases.	Director	10/08/2008
Decisions	Transaction Privilege and Use Taxes	200700045-S	Contracting. Taxpayers assumed the prime contracting transaction privilege tax liabilities of the Off-site Contractors, who were not exempt subcontractors, by issuing Form 5005 exemption certificates to the Off-site Contractors.	Director	09/08/2008
Decisions	Transaction Privilege and Use Taxes	200700120-S	Contracting. Where a Contractor had dominion over sales proceeds, assigning them to another party does not exclude the proceeds from being subject to the transaction privilege tax.	Hearing	03/14/2008
Decisions	Transaction Privilege and Use Taxes	200500180-S	The installation of security systems is taxable as prime contracting.	Director	07/09/2007
Decisions	Transaction Privilege and Use Taxes	200500019-S	Taxpayer argues that it is entitled to additional exemptions for the installation of exempt manufacturing machinery or equipment and for purchases of exempt pollution control equipment.	Director	03/26/2007
Decisions	Transaction Privilege and Use Taxes	200500065-S	Whether certain transactions were retail sales or investments.	Director	03/23/2007
Decisions	Transaction Privilege and Use Taxes	200600015-S	Refund Claim and statute of limitations.	Director	12/05/2006
Decisions	Transaction Privilege and Use Taxes	200600005-S	Penalty abatement request.	Director	10/13/2006
Decisions	Transaction Privilege and Use Taxes	200500005-S	Taxation of transient lodging business.	Director	09/22/2006
Decisions	Transaction Privilege and Use Taxes	200500034-S	Bad debt deduction not allowed to taxpayer that did not incur the debt.	Director	07/26/2006
Decisions	Transaction Privilege and Use Taxes	200500067-S	Fees charged by photographer are taxable.	Director	07/17/2006
Decisions	Transaction Privilege and Use Taxes	200400092-S	Gross receipts from green fees for the use of golf courses are subject to the transaction privilege tax under the amusement classification.	Director	10/24/2005
Decisions	Transaction Privilege and Use Taxes	200300086-S	The sale of small electric generators for household and farm use are not exempt from the transaction privilege tax.	Director	04/19/2004
Decisions	Transaction Privilege and Use Taxes	200200180-S	Architectural, engineering and design fees were taxable under the prime contracting classification and whether penalties were warranted. (superseded by legislation, see A.R.S. § 42-5075.J.)	Director	11/26/2003