The installation of security systems is taxable as prime contracting.

Penalty abatement request.

Refund Claim and statute of limitations.

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.

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.

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.

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.

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.