Terms Used In Arizona Laws > Title 42 > Chapter 5 > Article 4 - Use Tax

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

  (a) Electricity. See Arizona Laws 1-215

• 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
• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• 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

• 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
• 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.
• Department: means the department of revenue. See Arizona Laws 42-1001
• 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
• Engaging: when used with reference to engaging or continuing in business, includes the exercise of corporate or franchise powers. See Arizona Laws 42-5001
• 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.
• 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
• 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
• including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
• 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
• 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.
• 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
• 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
• 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: 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: includes property of every kind, both tangible and intangible, that is not included as real estate. See Arizona Laws 42-11001
• Personal property: All property that is not real property.
• Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215
• Property: includes both real and personal property. See Arizona Laws 1-215
• 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
• Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
• 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.
• 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
• 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

• 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

• 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 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
• 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
• 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 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
• 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
• 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