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.

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.

Taxpayers cannot take an itemized deduction for health insurance premiums paid through an employer which deducted the premiums from the employee’s pay using pre-tax dollars.

The proper calculation of the credit for taxes paid to other states or countries for 2002 tax year includes a pro-rata application of Arizona exemptions and deductions to the income from the other state or country. Where the laws of another state provide for a credit for taxes paid to Arizona but a taxpayer is unable to take the credit because of electing to file on a composite return in that state, the taxpayer is not eligible in Arizona to take a credit for taxes paid to that state.

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.

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

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

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.

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.

To claim an enterprise zone credit the taxpayer must be the employer.