Section R15-5-2304. Presumption of Taxability of Property Brought into Arizona

A.      If tangible personal property is purchased outside Arizona and is subsequently brought into this state for use, storage, or con- sumption, the purchaser of such property shall be subject to the Arizona use tax unless the purchaser establishes to the sat- isfaction of the Department:

1.        That the property is not used in conducting a business in Arizona; and

2.        That the property was purchased for bona fide use or con- sumption outside Arizona. Unless shown otherwise, it shall be presumed that the property was purchased for bona fide use or consumption outside of Arizona if the property was purchased at least three months prior to its initial entry into Arizona; or

3.        If the property was purchased by a nonresident individ- ual, that the first actual use or consumption of the prop- erty occurred outside Arizona.

B.       It shall be presumed that property brought into the state is sub- ject to the use tax. The burden of proof that a purchase is not subject to use tax rests upon the purchaser.

Historical Note

Former Section R15-5-2311 repealed, new Section R15- 5-2311 adopted effective August 7, 1985 (Supp. 85-4). Former Section R15-5-2304 repealed, new Section R15- 5-2304 renumbered from R15-5-2311 and amended effective September 29, 1993 (Supp. 93-3).