Section R15-5-175. Sales to Nonresidents Temporarily Within this State

A.      For purposes of this rule, “nonresident” means:

1.        An individual who is not a resident for Arizona income tax purposes; or

2.        An entity which has no business location or business nexus in Arizona.

B.       Gross receipts from the sale of tangible personal property to a nonresident of Arizona who is temporarily within this state are exempt from the tax if:

1.        The vendor ships or delivers the tangible personal prop- erty out of this state by common carrier, United States mail, or the vendor’s own conveyance; and

2.        The tangible personal property is not used in Arizona.

C.      To substantiate the exemption for a sale to a nonresident tem- porarily within the state, the vendor shall obtain a completed exemption certificate or a written statement from such a buyer certifying that the buyer is not a resident of Arizona and that the property purchased is for use outside of Arizona.

1.        Such a statement or certificate shall be maintained as part of the records of the vendor for the required statutory period.

2.        The vendor may use the exemption certificate prescribed by the Department.

D.      Suitable records, as delineated in R15-5-170, shall be kept by the vendor to establish out-of-state shipments.

Historical Note

Adopted effective August 9, 1993 (Supp. 93-3).