A. There is levied and the department shall collect a tax on the business of operating a municipal water delivery system for the purposes prescribed in section 49-282. The tax is levied at the rate of .65 of one cent per one thousand gallons of water delivered to customers, except that water delivered to a customer for resale is exempt from the tax.

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Terms Used In Arizona Laws 42-5302

  • 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

  • Department: means the department of revenue. See Arizona Laws 42-1001
  • municipal water delivery system: means an entity that distributes or sells potable water primarily through a pipeline delivery system which is owned by either:

    1. See Arizona Laws 42-5301

B. The owner or operator of a municipal water delivery system shall pay the tax to the department at the same time as paying the transaction privilege tax under section 42-5014. If the system for any reason does not pay transaction privilege tax, the tax imposed by this article is due and payable to the department, and is delinquent if not paid, as provided in section 42-5014, subsection A.