Transaction Privilege and Use Taxes

Subscription income from online database was subject to transaction privilege tax under the state and city personal property rental classifications.

Receipts from excavation, forest clearing and road construction were taxable prime contracting receipts.

Taxation of the business of providing and servicing portable toilet containers.

Nexus for transaction privilege tax

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.

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.

Restaurant classification, definition of delicatessen business, sales of food for consumption off the premises, separate lines of business.

Proceeds for work on a pipeline are taxable under prime contracting because the pipeline is permanently attached.

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.

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.