Section R15-5-2302. General

A.      In this Section, “retailer” and “utility business” have the same meanings as prescribed in A.R.S. § 42-5151.

B.       A.R.S. § 42-5155 imposes Arizona use tax upon a purchaser that purchases tangible personal property from an out-of-state retailer or utility business if the retailer or utility business’s gross receipts from the sale have not already been included in the measure of Arizona transaction privilege tax. Because Ari- zona transaction privilege tax and Arizona use tax are comple- mentary taxes, only one of the taxes is imposed on a given transaction.

C.      Arizona use tax generally applies to the use, storage, or con- sumption in this state of tangible personal property purchased from an out-of-state retailer or utility business.

D.      If a purchaser pays to an out-of-state retailer or utility business a tax of another state levied on the sale or use of tangible per- sonal property that is subject to Arizona use tax, the purchaser may apply the amount of tax paid to the other state against the purchaser’s use tax liability.

E.       A purchaser that purchases tangible personal property exempt from tax because the property is purchased for resale in the ordinary course of business but subsequently uses or consumes the tangible personal property shall pay Arizona use tax.

Historical Note

Amended by final rulemaking at 11 A.A.R. 2293, effec- tive August 6, 2005 (Supp. 05-2).