Bill Text: AZ HB2118 | 2025 | Fifty-seventh Legislature 1st Regular | Introduced

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Bill Title: TPT; sourcing; business location; receipt

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-01-29 - House WM Committee action: Do Pass, voting: (6-3-0-0-0-0) [HB2118 Detail]

Download: Arizona-2025-HB2118-Introduced.html

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PREFILED    JAN 13 2025

REFERENCE TITLE: TPT; sourcing; business location; receipt

 

 

 

 

State of Arizona

House of Representatives

Fifty-seventh Legislature

First Regular Session

2025

 

 

 

HB 2118

 

Introduced by

Representative Carter N

 

 

 

 

 

 

 

 

An Act

 

amending section 42-5040, Arizona Revised Statutes; relating to transaction privilege tax.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1.1. Section 42-5040, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5040. Sourcing of certain transactions involving tangible personal property; definitions

A. Except as provided in section 42-5075, retail sales of tangible personal property shall be sourced as follows:

1. To the seller's business location if the seller receives the order at a business location in this state.

2. Except as provided in section 42-5008.01, to the purchaser's location in this state if the seller receives the order at a business location outside this state or, if there is no delivery address, to the purchaser's billing address.

B. A shared vehicle transaction shall be sourced as follows:

1. To the permanent street address of the registered shared vehicle owner if the shared vehicle is registered in this state.

2. To the street address in this state where the shared vehicle owner resides while in this state if the shared vehicle is registered in another state or country.

3. To the location of the shared vehicle at the car sharing start time if the shared vehicle owner does not reside in this state and the shared vehicle is registered in another state or country.

C. For the purposes of subsection A of this section, an order is received when all of the information necessary to accept the order has been received by or on behalf of the seller at a business location of the seller, regardless of where the order is accepted or approved. The place of business or residence of the purchaser or the location of servers used to transmit the INFORMATION necessary to accept the order to a business location does not determine where the order is received.

D. The gross receipts from leasing or renting tangible personal property shall be sourced as follows:

1. To the lessor's business location if the lessor has a business location in this state.

2. To the lessee's address if the lessor does not have a business location in this state or, if there is no lessee's address, to the lessee's billing address. The gross receipts are taxable when the property is shipped, delivered or otherwise brought into this state for use in this state.

E. For the purposes of this section:

1. "Business location" means a physical space that a person can occupy, such as an office or a room in a house, and in which business is carried on.

1. 2. "Car sharing start time" has the same meaning prescribed in section 28-9601.

2. 3. "Lessee's address" means the residential address of an individual lessee and the primary business address of any other lessee.

3. 4. "Lessor's business location" means the business location address that appears on the lessor's transaction privilege tax license.

4. 5. "Shared vehicle" has the same meaning prescribed in section 28-9601.

5. 6. "Shared vehicle owner" has the same meaning prescribed in section 28-9601.

6. 7. "Shared vehicle transaction" has the same meaning prescribed in section 28-9601. END_STATUTE

Sec. 2.2. Applicability

This act applies to taxable periods beginning on or after the first day of the month following the general effective date.