Terms Used In Arizona Laws > Title 42 > Chapter 5 - Transaction Privilege and Affiliated Excise Taxes

• Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
• Address: means a mailing address. See Arizona Laws 10-140
• Alternative fuel: means :

  (a) Electricity. See Arizona Laws 1-215

• Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
• Ancillary services: means those services so designated in federal energy regulatory commission order 888 adopted in 1996 that include the services necessary to support the transmission of electricity from resources to loads while maintaining reliable operation of the transmission system according to good utility practice. See Arizona Laws 42-5151
• Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
• Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
• Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
• Articles of incorporation: means the original or restated articles of incorporation or articles of merger and all amendments to the articles of incorporation or merger and includes amended and restated articles of incorporation and articles of amendment and merger. See Arizona Laws 10-140
• Assessed valuation: means the value derived by applying the applicable percentage prescribed by chapter 15, article 1 of this title to the full cash value or limited property value of the property, as applicable. See Arizona Laws 42-11001
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
• Bank: means any banking corporation or national banking association. See Arizona Laws 10-2251
• Benefit corporation: means a corporation that both:

  (a) Has elected to become subject to this chapter. See Arizona Laws 10-2402

• Board of directors: means the group of persons vested with the management of the affairs of the corporation irrespective of the name by which the group is designated and includes the governing body or bodies of a water users' association if the articles of incorporation of the water users' association provide for a governing body or bodies denominated other than as a board of directors. See Arizona Laws 10-140
• 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

• Bylaws: means the code of rules adopted for the regulation or management of the affairs of the corporation irrespective of the name by which those rules are designated. See Arizona Laws 10-140
• coal refining process: means the application of a coal additive system that aids the reduction of power plant emissions during the combustion of coal and the treatment of flue gas. See Arizona Laws 42-5151
• Commission: means the Arizona corporation commission. See Arizona Laws 10-140
• company: includes an individual, firm, partnership, joint venture, association, corporation, estate, trust, marketplace facilitator or remote seller, this state, any county, city, town, district, other than a school district, or other political subdivision and any other group or combination acting as a unit, and the plural as well as the singular number. See Arizona Laws 42-5001
• Consumer: means a person who purchases prepaid wireless telecommunications service in a retail sale of prepaid wireless telecommunications service. See Arizona Laws 42-5401
• Contract: A legal written agreement that becomes binding when signed.
• 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.
• Corporation: means a business development corporation formed under this chapter. See Arizona Laws 10-2251
• Customer: means a person or entity in whose name telephone or telecommunication services are rendered, as evidenced by a signature on an application or contract for service or by receipt or payment of bills regularly issued in the person's or entity's name. See Arizona Laws 42-5251
• Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
• Department: means the department of revenue. See Arizona Laws 42-1001
• Deputy director of financial institutions: means the deputy director of the financial institutions division of the department of insurance and financial institutions. See Arizona Laws 10-2251
• Director: means the director of the department. See Arizona Laws 42-1001
• Distribution base: means the portion of the revenues derived from the tax levied by this article and articles 5 and 8 of this chapter designated for distribution to counties, municipalities and other purposes according to section 42-5029, subsection D. See Arizona Laws 42-5001
• Due date: means the next business day if a due date of any report, claim, return, statement, payment, deposit, petition, notice or other document or filing falls on Saturday, Sunday or a legal holiday. See Arizona Laws 42-11001
• Electric utility services: means the business of providing electric ancillary services, electric distribution services, electric generation services, electric transmission services and other services related to providing electricity. See Arizona Laws 42-5151
• Electricity: means electric energy, electric capacity or electric capacity and energy. See Arizona Laws 42-5151
• Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) ^{Source: OCC}
• Eligible grocery business: means an establishment that is deemed eligible to participate in the supplemental nutrition assistance program established by the food and nutrition act of 2008 (P. See Arizona Laws 42-5101
• Email: means :

  (a) An electronic transmission of a message to an email address. See Arizona Laws 42-1001

• Emergency telecommunication services: means telecommunication services or systems that use number 911 or a similarly designated telephone number for emergency calls. See Arizona Laws 42-5251
• Engaging: when used with reference to engaging or continuing in business, includes the exercise of corporate or franchise powers. See Arizona Laws 42-5001
• Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
• Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. ^{Source: U.S. Courts}
• Escrow: Money given to a third party to be held for payment until certain conditions are met.
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Ex officio: Literally, by virtue of one's office.
• Exchange access services: means telephone or telecommunication exchange access lines or channels that provide local access from the premises of a customer to the local telecommunications network to effect the transfer of information. See Arizona Laws 42-5251
• Facilities for the consumption of food: means tables, chairs, benches, booths, stools, counters and similar conveniences, trays, glasses, dishes or other tableware and parking areas for the convenience of in-car consumption of food in or on the premises on which the retailer conducts business. See Arizona Laws 42-5101
• Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
• Filing: means the commission completing the following procedure with respect to any document delivered for that purpose:

  (a) Determining that the filing fee requirements of section 10-122 have been satisfied. See Arizona Laws 10-140

• Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
• Food: means any food item intended for human consumption that is intended for home consumption as defined by rules adopted by the department pursuant to section 42-5106. See Arizona Laws 42-5101
• Food for consumption on the premises: includes :

  (a) Hot prepared food. See Arizona Laws 42-5101

• Fraud: Intentional deception resulting in injury to another.
• Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
• Grace period: The number of days you'll have to pay your bill for purchases in full without triggering a finance charge. ^{Source: Federal Reserve}
• Gross income: means the gross receipts of a taxpayer derived from trade, business, commerce or sales and the value proceeding or accruing from the sale of tangible personal property or service, or both, and without any deduction on account of losses. See Arizona Laws 42-5001
• Gross proceeds of sales: means the value proceeding or accruing from the sale of tangible personal property without any deduction on account of the cost of property sold, expense of any kind or losses, but cash discounts allowed and taken on sales are not included as gross income. See Arizona Laws 42-5001
• Gross receipts: means the total amount of the sale, lease or rental price, as the case may be, of the retail sales of retailers, including any services that are a part of the sales, valued in money, whether received in money or otherwise, including all receipts, cash, credits and property of every kind or nature, and any amount for which credit is allowed by the seller to the purchaser without any deduction from the amount on account of the cost of the property sold, materials used, labor or service performed, interest paid, losses or any other expense. See Arizona Laws 42-5001
• Gross value of production: means the sum of the value of production determined for each metalliferous mineral mined by the severer. See Arizona Laws 42-5201
• health sciences: includes medicine, nursing, physician's assistant studies, pharmacy, physical therapy, occupational therapy, biomedical sciences, podiatry, clinical psychology, cardiovascular science, nurse anesthesia, dentistry, optometry and veterinary medicine. See Arizona Laws 42-5001
• Hot prepared food: includes those products, items or ingredients of food that are prepared and intended for sale in a heated condition. See Arizona Laws 42-5101
• including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
• Indian reservation: means all lands that are within the limits of areas set aside by the United States for the exclusive use and occupancy of an Indian tribe by treaty, law or executive order and that are recognized as Indian reservations by the United States department of the interior. See Arizona Laws 42-5121
• Indian tribe: means any organized nation, tribe, band or community that is recognized as an Indian tribe by the United States department of the interior and includes any entity formed under the laws of the Indian tribe. See Arizona Laws 42-5121
• Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
• Internal revenue code: means the United States internal revenue code of 1986, as amended and in effect as of January 1, 2023, including those provisions that became effective during 2022 with the specific adoption of their retroactive effective dates but excluding all changes to the code enacted after January 1, 2023. See Arizona Laws 42-1001
• Jet fuel: means crude oil or any fraction of crude oil which is liquid at sixty degrees Fahrenheit and 14. See Arizona Laws 42-5351
• Joint committee: Committees including membership from both houses of teh legislature. Joint committees are usually established with narrow jurisdictions and normally lack authority to report legislation.
• Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
• Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). ^{Source: OCC}
• Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
• Lien: A claim against real or personal property in satisfaction of a debt.
• Marketplace: means a physical or electronic place, platform or forum, including a store, booth, internet website, catalog or dedicated sales software application, where products, including tangible personal property, are offered for sale. See Arizona Laws 42-5001
• Marketplace seller: means a person that makes retail sales through any physical or electronic marketplace that is operated by a marketplace facilitator. See Arizona Laws 42-5001
• Member: means any bank or federal or state savings and loan association authorized to do business within this state that shall undertake to lend money to the corporation on its call and in accordance with this chapter. See Arizona Laws 10-2251
• Metallic product: means any metalliferous mineral or metalliferous mineral product. See Arizona Laws 42-5201
• Metalliferous mineral: means copper, gold, silver, molybdenum or other metal or any ore or substance containing such metals including turquoise that is severed within this state. See Arizona Laws 42-5201
• Metalliferous mineral product: means the material resulting from the processing of a metalliferous mineral including any concentrate of an ore, any precipitate of a metalliferous mineral or any metal bullion. See Arizona Laws 42-5201
• Mining: means the activity of extracting from the earth substances that become metalliferous minerals and:

  (a) In the case of ore that is customarily milled, concentrated, agitation leached, or vat leached, mining includes all activity from the breaking of ground to the delivery of ore to the primary crusher, including blasting, loading, hauling, including hauling of waste, and dumping. See Arizona Laws 42-5201

• Mining costs: means production costs incurred in mining. See Arizona Laws 42-5201
• Minor: means a person under eighteen years of age. See Arizona Laws 1-215
• Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
• Motor vehicles that are removed from inventory: means a motor vehicle that has been removed from a motor vehicle dealer's, as defined in section 28-4301, inventory and that is not for sale. See Arizona Laws 42-5151
• 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

• Natural gas: means natural or artificial gas and includes methane and propane gas, the natural gas commodity, natural gas pipeline capacity or natural gas commodity and pipeline capacity. See Arizona Laws 42-5151
• Natural gas utility services: means the business of selling natural gas or providing natural gas transportation services or other services related to providing natural gas. See Arizona Laws 42-5151
• 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
• Oath: A promise to tell the truth.
• Oath: includes an affirmation or declaration. See Arizona Laws 1-215
• Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
• Other services: includes metering, meter reading services, billing and collecting services. 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: includes an individual and entity. See Arizona Laws 10-140
• Person: means a natural person, individual, proprietor, proprietorship, company, corporation, organization, association, joint venture, partner, partnership, trust, estate or limited liability company, the federal or state government, a political subdivision of a state or any other legal entity or combination of entities that owns, controls or has possession of real or personal property. See Arizona Laws 42-11001
• 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
• Person: includes an individual, firm, partnership, joint venture, association, corporation, estate, trust, receiver or syndicate, this state or a county, city, municipality, district or any other political subdivision or agency of this state. See Arizona Laws 42-5351
• 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
• Population: means the population according to the most recent United States decennial census. See Arizona Laws 1-215
• Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
• Premises: means the total space and facilities in or on which a retailer conducts business and that are owned or controlled, in whole or in part, by a retailer or are made available for the use of customers of the retailer or group of retailers, including any building or part of a building, parking lot or grounds. See Arizona Laws 42-5101
• Prepaid wireless telecommunications service: means wireless services that allow a caller to dial 911 to access the 911 system under a service that is paid for in advance and that is sold in predetermined units or dollars of which the number declines with use in a known amount. See Arizona Laws 42-5251
• Prepaid wireless telecommunications service: means a commercial mobile radio service, as defined by 47 C. See Arizona Laws 42-5401
• Price: means the per unit consideration a severer receives from the sale during the reporting period of a metallic product whether sold within or without this state. See Arizona Laws 42-5201
• Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215
• Processing: means any non-mining activity that transforms metalliferous minerals into metalliferous mineral products including precipitating, crushing, concentrating, smelting and refining. See Arizona Laws 42-5201
• Processing costs: means production costs other than mining costs. See Arizona Laws 42-5201
• Production costs: means the costs incurred by the severer in mining and processing until the point of sale including but not limited to energy, fuel, labor, supplies, depreciation, transportation and other expenses reasonably allocable to mining or processing including but not limited to labor benefits, property taxes, lease payments for equipment used in mining or processing and support services such as maintenance, security and administration if such services are site specific. See Arizona Laws 42-5201
• Property: includes both real and personal property. See Arizona Laws 1-215
• Provider: means any of the following:

  (a) A public service corporation that offers telephone or telecommunications services pursuant to title 40 and that provides exchange access services. See Arizona Laws 42-5251

• Purchase: means any transfer, exchange or barter, conditional or otherwise, in any manner or by any means, of tangible personal property for a consideration, including transactions by which the possession of property is transferred but the seller retains the title as security for payment. See Arizona Laws 42-5151
• Qualifying health care organization: means an entity that is recognized as nonprofit under section 501(c) of the United States internal revenue code and that uses, saves or invests at least eighty percent of all monies that it receives from all sources each year only for health and medical related educational and charitable services, as documented by annual financial audits prepared by an independent certified public accountant, performed according to generally accepted auditing standards and filed annually with the department. See Arizona Laws 42-5001
• Qualifying hospital: means any of the following:

  (a) A licensed hospital that is organized and operated exclusively for charitable purposes, no part of the net earnings of which inures to the benefit of any private shareholder or individual. See Arizona Laws 42-5001

• Real estate: includes the ownership of, claim to, possession of or right of possession to lands or patented mines. See Arizona Laws 42-11001
• Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
• Recoverable units: means metalliferous mineral units based on processing or contractual recoveries during the period of production. See Arizona Laws 42-5201
• Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
• Remote seller: means a person that sells products for delivery into this state and that does not have a physical presence or other legal requirement to obtain a transaction privilege tax license in this state other than because the person's business exceeds the threshold provided in section 42-5044. See Arizona Laws 42-5001
• Retail electric customer: means a person who purchases electricity for that person's own use, including use in that person's trade or business, and not for resale, redistribution or retransmission. See Arizona Laws 42-5151
• Retail sale of prepaid wireless telecommunications service: means a sale of prepaid wireless telecommunications service by a seller for any purpose other than resale. See Arizona Laws 42-5401
• Retailer: includes every person engaged in the business classified under the retail classification pursuant to section 42-5061 and, when in the opinion of the department it is necessary for the efficient administration of this article, includes dealers, distributors, supervisors, employers and salesmen, representatives, peddlers or canvassers as the agents of the dealers, distributors, supervisors or employers under whom they operate or from whom they obtain the tangible personal property sold by them, whether in making sales on their own behalf or on behalf of the dealers, distributors, supervisors or employers. See Arizona Laws 42-5001
• 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

• Retailer: includes every person engaging or continuing in the business of selling jet fuel for storage, use or other consumption or in the business of selling jet fuel owned by that person or others for storage, use or other consumption. See Arizona Laws 42-5351
• Sale: means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatever, including consignment transactions and auctions and transactions facilitated by a marketplace facilitator on behalf of a marketplace seller, of tangible personal property or other activities taxable under this chapter, for a consideration, and includes:

  (a) Any transaction by which the possession of property is transferred but the seller retains the title as security for the payment of the price. See Arizona Laws 42-5001

• sales price: means the total amount for which tangible personal property is sold, including any services that are a part of the sale, valued in money, whether paid in money or otherwise, and any amount for which credit is given to the purchaser by the seller without any deduction on account of the cost of the property sold, materials used, labor or services performed, interest charged, losses or other expenses, but does not include:

  (a) Discounts allowed and taken. See Arizona Laws 42-5151

• Secondary property taxes: means :

  (a) Ad valorem taxes or special property assessments that are used to pay the principal of and the interest and redemption charges on bonded indebtedness or other lawful long-term obligations that are issued or incurred for a specific capital purpose by a municipality, county or taxing district. See Arizona Laws 42-11001

• Seller: means a person who sells prepaid wireless telecommunications service to another person. See Arizona Laws 42-5401
• Severer: means a person engaging in the business of mining. See Arizona Laws 42-5201
• Shares: means units into which the shareholders' rights to participate in the control of a corporation, in its surplus or profits, or in the distribution of its assets, are divided. See Arizona Laws 10-2251
• Solar daylighting: means a device that is specifically designed to capture and redirect the visible portion of the solar beam, while controlling the infrared portion, for use in illuminating interior building spaces in lieu of artificial lighting. See Arizona Laws 42-5001
• Solar daylighting: means a device that is specifically designed to capture and redirect the visible portion of the solar beam, while controlling the infrared portion, for use in illuminating interior building spaces in lieu of artificial lighting. See Arizona Laws 42-5151
• Solar energy device: means a system or series of mechanisms that are designed primarily to provide heating, to provide cooling, to produce electrical power, to produce mechanical power, to provide solar daylighting or to provide any combination of the foregoing by means of collecting and transferring solar generated energy into such uses either by active or passive means, including wind generator systems that produce electricity. See Arizona Laws 42-5001
• Solar energy device: means a system or series of mechanisms designed primarily to provide heating, to provide cooling, to produce electrical power, to produce mechanical power, to provide solar daylighting or to provide any combination of the foregoing by means of collecting and transferring solar generated energy into such uses by either active or passive means, including wind generator systems that produce electricity. See Arizona Laws 42-5151
• state board: means either the state board of tax appeals or the state board of equalization, as applicable. See Arizona Laws 42-1001
• Statute: A law passed by a legislature.
• Statute of limitations: A law that sets the time within which parties must take action to enforce their rights.
• Storage: means keeping or retaining tangible personal property purchased from a retailer for any purpose except sale in the regular course of business or subsequent use solely outside this state. See Arizona Laws 42-5151
• Storage: means keeping or retaining jet fuel purchased from a retailer for any purpose except sale in the regular course of business or subsequent use solely outside this state. See Arizona Laws 42-5351
• subscription: includes a mark, if a person cannot write, with the person's name written near it and witnessed by a person who writes the person's own name as witness. See Arizona Laws 1-215
• 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
• Taxpayer: means any person who is liable for any tax imposed by this article. See Arizona Laws 42-5001
• Taxpayer: means any retailer or person storing, using or consuming tangible personal property, the storage, use or consumption of which is subject to the tax imposed by this article when such tax was not paid to a retailer. See Arizona Laws 42-5151
• Treasurer: means that officer designated as the treasurer in the articles of incorporation or bylaws or that officer authorized in the articles of incorporation or bylaws or otherwise to perform the functions of treasurer, irrespective of the name by which designated. See Arizona Laws 10-140
• United States: includes a district, authority, bureau, commission and department and any other agency of the United States. See Arizona Laws 10-140
• United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
• Use or consumption: means the exercise of any right or power over tangible personal property incidental to owning the property except holding for sale or selling the property in the regular course of business. See Arizona Laws 42-5151
• Use or consumption: means the exercise of any right or power over jet fuel incidental to owning the fuel except holding for sale or selling the fuel in the regular course of business. See Arizona Laws 42-5351
• User fees: Fees charged to users of goods or services provided by the government. In levying or authorizing these fees, the legislature determines whether the revenue should go into the treasury or should be available to the agency providing the goods or services.
• Utility business: means a person that is engaged in the business of providing electric utility services to retail electric customers or natural gas utility services to retail natural gas customers. See Arizona Laws 42-5151
• Valuation: means the full cash value or limited property value that is determined for real or personal property, as applicable. See Arizona Laws 42-11001
• Value of production: means the price multiplied by the recoverable units of a metallic product mined by the severer. See Arizona Laws 42-5201
• Venue: The geographical location in which a case is tried.
• Vote: includes authorization by written ballot and written consent. See Arizona Laws 10-3140
• Wireless services: means a commercial mobile service, as defined by 47 C. See Arizona Laws 42-5251
• Writing: includes printing. See Arizona Laws 1-215