Section R15-5-2210.01. Factoring

“Factoring” means a method by which the taxpayer may determine the amount of the tax when the tax is collected as an unspecified part of the selling price.

1.        The taxpayer may use any factoring method resulting in a tax amount equal to the tax as calculated using the sepa- rate and distinct item of charge method.

2.        The following factoring method is approved and recom- mended by the Department.

To calculate the tax under the factoring method, the total cost to the consumer is divided by one plus the cumulative amount of the state and applicable county, city, and town tax rates, stated as a decimal. The result of this calculation is then multiplied by the cumulative tax rate to arrive at the amount of the tax on the sale. The gross receipts subject to tax, plus the cumulative tax on that amount, shall equal the total cost to the consumer.

Historical Note To factor:   Former Section R15-5-2207 renumbered to R15-5-2204 Total cost to the consumer $105 effective October 14, 1993 (Supp. 93-4). New Section Divide the total cost to the   R15-5-2207 renumbered from R15-10-201 (Supp. 94-1). consumer by 1 plus the tax   5-5-2208.   Expired                                                                                                               rate (1.00 plus .05)   $105 divided by 1.05 equals the   Historical Note price of tangible personal property $100 Repealed effective October 14, 1993 (Supp. 93-4). New Tax as calculated ($100 times 5%) $5

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Section made by exempt rulemaking at 16 A.A.R. 1226, effective June 15, 2010; Section number corrected at request of Department, Office File No. M11-118, filed March 31, 2011 (Supp. 10-2). Section expired under

A.R.S. § 41-1056(E) at 18 A.A.R. 1652, effective March 31, 2012 (Supp. 12-2).