Bill Text: AZ HB2571 | 2013 | Fifty-first Legislature 1st Regular | Introduced
Bill Title: TPT export exemption; border centers
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2013-02-07 - Introduced [HB2571 Detail]
Download: Arizona-2013-HB2571-Introduced.html
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REFERENCE TITLE: TPT export exemption; border centers |
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State of Arizona House of Representatives Fifty-first Legislature First Regular Session 2013
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HB 2571 |
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Introduced by Representatives Orr, Miranda, Steele: Pratt, Senator Farley
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AN ACT
amending title 42, chapter 5, article 1, Arizona Revised Statutes, by adding sections 42-5039, 42-5040 and 42-5041; relating to transaction privilege taxes.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 42, chapter 5, article 1, Arizona Revised Statutes, is amended by adding sections 42-5039, 42‑5040 and 42‑5041, to read:
42-5039. Foreign commerce export exemption; proof of export; refund process; violation; classification
A. For an exemption claimed for tangible personal property sold in this state for export and resale outside of the united states pursuant to section 42-5061, subsection a, paragraph 24, proof of export shall be shown by any of the following:
1. A common carrier receipt or bill of lading that is issued by a licensed and certificated carrier evidencing shipment to a delivery point outside of the united states and that describes the property being exported.
2. Documentation issued by a border business center licensed by the department under section 42-5040 that includes:
(a) A certification made by the border business center with an export stamp pursuant to section 42-5041 affixed that describes the tangible personal property being exported and states that delivery was made to a point outside of the united states.
(b) A statement that is signed by the person claiming the exemption that states "providing false information to a border business center is a class 3 misdemeanor".
(c) Any other information required by the department.
3. Import documents from the country of destination showing that the property was imported into a country other than the United States.
4. A freight forwarder's receipt if the freight forwarder takes possession of the property and an original bill of lading issued by a licensed and certificated carrier that describes the tangible personal property being exported and shows a delivery point outside of the united states.
5. Any other manner as determined by the department.
B. A certification with the export stamp affixed made by a border business broker licensed by the department under section 42-5040 is presumed valid in the absence of clear and convincing evidence that the tangible personal property covered by the certification was not exported outside of the united states.
C. A retailer that receives documentation including a certification with an affixed export stamp under subsection a, paragraph 2 of this section relating to the purchase of tangible personal property exported outside of the united states may not refund the tax paid under section 42-5061, subsection a, paragraph 24 for that sale before:
1. Twenty-four hours after the hour stated on the documentation as the time of export if the retailer is located in a county that borders Mexico.
2. Seven calendar days after the day stated on the documentation as the date of export if the retailer is located in a county that does not border Mexico.
D. A retailer that makes a refund before the time prescribed in subsection C of this section or makes a refund that is undocumented or improperly documented is liable for the amount of tax refunded with interest.
E. A person who provides false information to a border business center in regard to proof of an exemption pursuant to this section is guilty of a class 3 misdemeanor.
42-5040. Border business center; licensing; fee; website
A. A border business center licensed by the department under this section may issue documentation, including a certification with an export stamp affixed for the purpose of showing compliance with the requirements for exemption of tangible personal property under section 42-5061, subsection A, paragraph 24 and section 42-5039, only under the procedures established by this section and sections 42-5039 and 42‑5041 and by the department by rule.
B. The department may issue a license to a border business center for the purposes described in section 42-5039 and this section for each place of business of the border business center if the center:
1. Applies for and is issued a license under this section by the department.
2. Pays an annual license fee to the department in the amount of three hundred dollars for each place of business from which the border business center intends to issue documentation. The department shall use the fees only for the administration of this section, including costs of materials, labor and overhead.
3. Posts a bond or security in the amount of five thousand dollars, plus an additional one thousand dollars for each place of business from which the border business center intends to issue documentation. The security may be in the form of cash, a certificate of deposit or a letter of credit.
C. The border business center licensed under this section shall make available to the department its books and records relating to the business of issuing documentation certifying the export of tangible personal property outside of the united states under section 42-5039 for the purpose of exempting the property from the taxes imposed by section 42-5061, subsection A, paragraph 24. The border business center shall keep all books and records under section 42-5039 for at least two years after the date of the last entry that they contain.
D. The border business center shall report quarterly to the department:
1. The total value of the tangible personal property and the total amount of the corresponding tax for which the border business center issued documentation.
2. The total amount of tax refunded pursuant to the documentation.
E. The department shall maintain a password-protected website that a border business center licensed under this section shall use to prepare and produce the documentation to show compliance with the requirements of the exemption of tangible personal property under section 42-5061, subsection a, paragraph 24 and section 42-5039. The department shall use the information provided by the border business center under this section as necessary to enforce this section, section 42-5061, subsection A, paragraph 24 and section 42-5039. The department shall provide an alternate method for a border business center to prepare documentation under this section if the password‑protected website is unavailable.
F. The department may suspend or revoke a license issued under this section if the border business center issues documentation that is false to obtain a refund or to assist another person in obtaining a refund of taxes paid on tangible personal property that is not exported.
G. In addition to any other penalty provided by law, the department may require a border business center to pay the department the amount of any tax refunded if the center did not comply with this section or the rules adopted by the department under this section in relation to the refunded tax.
42-5041. Export stamps; fee
A. The department shall have printed or manufactured stamps in the design, size and quantity the department determines necessary for the purpose of this section. The department may designate the method of identification for the stamps. The department shall require that the stamps be manufactured to be easily and securely attached to documentation. The department shall change the design of the stamp at least once each calendar quarter, or more frequently if the department determines it is necessary for the enforcement of this section and the department's rules.
B. The department may sell, issue or provide stamps only to a border business center that is licensed under section 42-5040.
C. A stamp is invalid if transferred to a person other than a border business center to whom the department sold, issued or provided the stamp.
D. The department shall charge one dollar sixty cents for each stamp. The department shall use the monies from the sale of stamps only for costs related to producing stamps, including the costs of materials, labor and overhead. Any unspent monies shall be deposited in the state general fund. Border business centers that return unused stamps to the department on a quarterly basis shall receive a credit toward the purchase of new stamps.
E. The department may require stamps to be purchased in minimum quantities if the department considers it necessary for the efficient administration of this section.
Sec. 2. Requirements for enactment; two-thirds vote
Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.
