Arizona Laws 42-5167. Use tax direct payment
A. A person may elect to pay use taxes directly to the department under this article if the person:
Terms Used In Arizona Laws 42-5167
- Business: includes all activities or acts, personal or corporate, that are engaged in or caused to be engaged in with the object of gain, benefit or advantage, either directly or indirectly, but does not include either:
(a) Casual activities or sales. See Arizona Laws 42-5001
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the department of revenue. See Arizona Laws 42-1001
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Notice: means written notice served personally or by certified mail and addressed to the last known address of the person to whom such notice is given. See Arizona Laws 42-5151
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: means an individual, firm, partnership, joint venture, association, corporation, estate, trust, receiver or syndicate, this state or a county, city, municipality, district or other political subdivision or agency thereof. See Arizona Laws 42-5151
- Personal property: All property that is not real property.
- Personal property: includes property of every kind, both tangible and intangible, that is not included as real estate. See Arizona Laws 42-11001
- Retailer: includes :
(a) Every person engaged in the business of making sales of tangible personal property for storage, use or other consumption or in the business of making sales at auction of tangible personal property owned by that person or others for storage, use or other consumption. See Arizona Laws 42-5151
- Tangible personal property: means personal property that may be seen, weighed, measured, felt or touched or that is in any other manner perceptible to the senses. See Arizona Laws 42-5001
1. Applies to the department for a use tax direct payment permit. The application must be on a form prescribed by the department setting forth the name under which the applicant transacts or intends to transact business, the location of the place or places of business where the applicant intends to make direct payment of use taxes and any other information that the department may require. The application must be signed, in the case of:
(a) A natural person, by the owner.
(b) An association or partnership, by a member or partner.
(c) A corporation, by an executive officer or another person specifically authorized by the corporation to sign the application.
2. Agrees to self-assess and pay directly to the department any use tax liability incurred under this article.
3. Certifies to the department that the person purchased for the person’s own use tangible personal property at a cost of five hundred thousand dollars or more, in the aggregate, during the immediately preceding calendar year.
B. The department shall issue a use tax direct payment permit to any applicant that meets the requirements of subsection A of this section.
C. If the department deems it necessary to protect the revenues to be collected under this section, it may require a person to file a bond to secure the payment of such amounts pursuant to section 42-1102.
D. A person who holds a valid use tax direct payment permit shall:
1. Self-assess and pay directly to the department use taxes due under this article for all tangible personal property subject to use tax.
2. Report the tax on a tax return prescribed by the department.
E. A holder of a use tax direct payment certificate may issue a use tax direct payment certificate to any retailer or seller, subject to all of the following:
1. The certificate shall be in a form prescribed by the department and must be signed by and bear the name, address and permit number of the holder of the use tax direct payment permit.
2. The certificate is effective until the permit holder revises or withdraws the certificate or until the retailer or seller receives actual notice that the department has revoked the permit.
3. The certificate relieves the retailer or seller of the duty to collect use tax only if taken in good faith from a person who holds a use tax direct payment permit. The department may periodically publish on its web site a list of taxpayers by name with tax identification numbers who have been issued direct payment permits. A purchaser holding a direct payment permit who issues a use tax direct payment certificate that is accepted in good faith by a retailer or seller of tangible personal property shall be liable for use tax and related interest and penalties with respect to any transaction that the department subsequently determines properly subjects the vendor to the transaction privilege tax and not use tax. The vendor shall be relieved of the duty to pay transaction privilege tax on such transactions.
4. In addition to any use tax liabilities, a holder of a use tax direct payment permit that gives a use tax direct payment certificate to a retailer or seller is subject to the same penalty provisions that apply to a retailer or seller.