Arizona Laws 42-5039. Qualified destination management companies; definitions
A. A qualified destination management company is not subject to transaction privilege tax under this chapter on the gross proceeds of sales or gross income derived from a qualified contract for destination management services. The gross proceeds of sales or gross income derived by a qualified destination management company from transactions that are not part of a qualified contract for destination management services are subject to tax if otherwise taxable under this chapter.
Terms Used In Arizona Laws 42-5039
- Business: includes all activities or acts, personal or corporate, that are engaged in or caused to be engaged in with the object of gain, benefit or advantage, either directly or indirectly, but does not include either:
(a) Casual activities or sales. See Arizona Laws 42-5001
- company: includes an individual, firm, partnership, joint venture, association, corporation, estate, trust, marketplace facilitator or remote seller, this state, any county, city, town, district, other than a school district, or other political subdivision and any other group or combination acting as a unit, and the plural as well as the singular number. See Arizona Laws 42-5001
- Contract: A legal written agreement that becomes binding when signed.
- Gross income: means the gross receipts of a taxpayer derived from trade, business, commerce or sales and the value proceeding or accruing from the sale of tangible personal property or service, or both, and without any deduction on account of losses. See Arizona Laws 42-5001
- Gross proceeds of sales: means the value proceeding or accruing from the sale of tangible personal property without any deduction on account of the cost of property sold, expense of any kind or losses, but cash discounts allowed and taken on sales are not included as gross income. See Arizona Laws 42-5001
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Person: means a natural person, individual, proprietor, proprietorship, company, corporation, organization, association, joint venture, partner, partnership, trust, estate or limited liability company, the federal or state government, a political subdivision of a state or any other legal entity or combination of entities that owns, controls or has possession of real or personal property. See Arizona Laws 42-11001
- Venue: The geographical location in which a case is tried.
B. A qualified destination management company is a final consumer and user of any tangible personal property, activity or service subject to transaction privilege tax under article 2 of this chapter that the qualified destination management company arranges pursuant to a qualified contract for destination management services.
C. For the purposes of this section:
1. "Destination management services" means the business of coordinating, designing and implementing the delivery by a third party of four or more of the following:
(a) Transportation.
(b) Entertainment.
(c) Food or beverage.
(d) Recreational or amusement activity.
(e) Tours.
(f) Event venue.
(g) Theme decor.
2. "Qualified contract" means a contract for the provision of destination management services by a qualified destination management company where both of the following apply:
(a) The qualified destination management company receives payment from or on behalf of the qualified destination management company’s client for the cost of the destination management services arranged by the qualified destination management company.
(b) The qualified destination management company pays the vendor supplying the destination management services arranged by the qualified destination management company including any applicable transaction privilege tax or collection of use tax charged by the vendor to the qualified destination management company.
3. "Qualified destination management company" means a person that receives on an annual basis at least eighty per cent of its gross proceeds of sales or gross income derived from destination management services.