Arizona Tax Changes - November 2024
Week Of 11.04.2024
The Arizona Department of Revenue has updated its transaction privilege tax (TPT) rate tables for December 2024, effective December 1, 2024.
These tables include rates for medical and adult use marijuana TPT codes. There are no rate changes for the month of December. The Arizona Court of Appeals has ruled that a laundry business is not a "processor" under the use tax exemption. The court found that the laundry business was not introducing new products to the market, but instead was restoring the original article for repeated use.
Week Of 11.04.2024
Arizona Sales and Use Tax Rates—Arizona publishes TPT rate tables for December 2024.
The Arizona Department of Revenue has updated its transaction privilege tax (TPT) rate tables for December 2024. Also included are the tables for medical and adult use marijuana TPT codes. There are no rate changes for the month of December. (Transaction Privilege Tax and Other Rate Tables, Ariz. Dept. Rev., effective 12/01/2024.)
Arizona Sales & Use Taxes—Arizona Appeals Court finds laundry business not "processor" under use tax exemption.
The Arizona Court of Appeals upheld a summary judgment decision against a taxpayer claiming the use tax exemption under Ariz. Rev. Stat. Ann. §42-5159(B)(1), which exempts "[machinery, or equipment, used directly in manufacturing, processing, fabricating, job printing, refining or metallurgical operations." The lower court granted the Department of Revenue summary judgment, finding that although the taxpayer's operations included some "processing" of the linens as they are cleaned and disinfected, its business as a whole was a laundry. The taxpayer claimed that the sanitization process changed the state or form of the textiles because contaminants bonded or affixed to the fabric, thus altering the composition. The court of appeals found that while the taxpayer performed mechanically and chemically intense, industrial-scale sanitization, it owned, rented, delivered, and collected the textiles that it sanitized, and thus was not introducing new products to the market, but instead was restoring the original article for repeated use. Citing precedent, the court found that the commonly understood definition of processing did not contemplate such a business, and that the taxpayer's statutory interpretation was overly broad and would encompass any business that improved marketability of a commodity. Accordingly, the court held that the business did not meet the definition of a processing operation, was not entitled to the exemption, and upheld the summary judgment. (9W Halo, Opco, LP v. Ariz. Dept. of Rev., Ariz. Ct. App. Dkt. No. 1 CA-TX 23-0003, 11/07/2024.)
Arizona Sales & Use Taxes—Arizona publishes TPT rate tables for December 2024.
The Arizona Department of Revenue has updated its transaction privilege tax (TPT) rate tables for December 2024. Also included are the tables for medical and adult use marijuana TPT codes. There are no rate changes for the month of December. (Transaction Privilege Tax and Other Rate Tables, Ariz. Dept. Rev., effective 12/01/2024.)
Week Of 11.04.2024
Arizona Sales and Use Tax Rates—Arizona publishes TPT rate tables for December 2024.
The Arizona Department of Revenue has updated its transaction privilege tax (TPT) rate tables for December 2024. Also included are the tables for medical and adult use marijuana TPT codes. There are no rate changes for the month of December. (Transaction Privilege Tax and Other Rate Tables, Ariz. Dept. Rev., effective 12/01/2024.)
Arizona Sales & Use Taxes—Arizona Appeals Court finds laundry business not "processor" under use tax exemption.
The Arizona Court of Appeals upheld a summary judgment decision against a taxpayer claiming the use tax exemption under Ariz. Rev. Stat. Ann. §42-5159(B)(1), which exempts "[machinery, or equipment, used directly in manufacturing, processing, fabricating, job printing, refining or metallurgical operations." The lower court granted the Department of Revenue summary judgment, finding that although the taxpayer's operations included some "processing" of the linens as they are cleaned and disinfected, its business as a whole was a laundry. The taxpayer claimed that the sanitization process changed the state or form of the textiles because contaminants bonded or affixed to the fabric, thus altering the composition. The court of appeals found that while the taxpayer performed mechanically and chemically intense, industrial-scale sanitization, it owned, rented, delivered, and collected the textiles that it sanitized, and thus was not introducing new products to the market, but instead was restoring the original article for repeated use. Citing precedent, the court found that the commonly understood definition of processing did not contemplate such a business, and that the taxpayer's statutory interpretation was overly broad and would encompass any business that improved marketability of a commodity. Accordingly, the court held that the business did not meet the definition of a processing operation, was not entitled to the exemption, and upheld the summary judgment. (9W Halo, Opco, LP v. Ariz. Dept. of Rev., Ariz. Ct. App. Dkt. No. 1 CA-TX 23-0003, 11/07/2024.)
Arizona Sales & Use Taxes—Arizona publishes TPT rate tables for December 2024.
The Arizona Department of Revenue has updated its transaction privilege tax (TPT) rate tables for December 2024. Also included are the tables for medical and adult use marijuana TPT codes. There are no rate changes for the month of December. (Transaction Privilege Tax and Other Rate Tables, Ariz. Dept. Rev., effective 12/01/2024.)