Section R15-3-314. Sales in Interstate or Foreign Commerce

Tobacco  products  sold  by  licensed  distributors   to  purchasers located  outside   the  state are  exempt  from  tobacco  taxes  if  the following conditions are met:

1.        The tobacco products are shipped or delivered by the distributor to a location outside the state for use outside the state; and

2.        The distributor files with the Department the applicable monthly return or report for the tobacco products being sold, in the form furnished by the Department at www.azdor.gov or an office of the Department;

3.        The distributor, on the form filed under subsection (2), indicates the amount of out-of-state sales in the appropriate section and the party to whom the sales were made and provides each of the following:

a.        One copy of the return or report to the Department;

b.        One copy of the return or report to the taxing authority of the state of destination of the cigarettes or other tobacco products; and

4.        The distributor retains one copy of each return or report for four years following the close of the calendar year in which the cigarettes are sold or two years following the close of the calendar year in which the other tobacco products are sold.

Historical Note

Adopted effective March 18, 1981 (Supp. 81-2). Former Section R15-3-314 renumbered to R15-3-311, new Section R15-3-314 renumbered from R15-3-319 and amended effective June 20, 1990 (Supp. 90-2). Amended by final rulemaking at 5 A.A.R. 2168, effective June 15, 1999 (Supp. 99-2). Amended by final rulemaking at 14

A.A.R. 4410, effective January 3, 2009 (Supp. 08-4).