A. The online lodging marketplace classification is comprised of the business of operating an online lodging marketplace.

Terms Used In Arizona Laws 42-5076

  • 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

  • Department: means the department of revenue. See Arizona Laws 42-1001
  • 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
  • Marketplace: means a physical or electronic place, platform or forum, including a store, booth, internet website, catalog or dedicated sales software application, where products, including tangible personal property, are offered for sale. See Arizona Laws 42-5001
  • 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
  • Property: includes both real and personal property. See Arizona Laws 1-215

B. The tax base for the online lodging marketplace classification is the gross proceeds of sales or gross income derived from the business measured by the total amount charged for an online transient lodging transaction by the online lodging operator.

C. Through December 31, 2018, the online lodging marketplace classification does not include any online lodging marketplace that has not entered into an agreement with the department to register for, or has not otherwise obtained from the department, a license to collect tax pursuant to section 42-5005, subsection L.

D. The tax base for the online lodging marketplace classification does not include the gross proceeds of sales or gross income derived from charges to an occupant who is a transient as defined in section 42-5070 for the occupancy of any lodging accommodation in this state that is classified for property tax purposes under section 42-12001.

E. For the purposes of this section:

1. "Online lodging marketplace" means a person that provides a digital platform for compensation through which an unaffiliated third party offers to rent lodging accommodations in this state to an occupant, including a transient, as defined in section 42-5070, and the accommodations are not classified for property tax purposes under section 42-12001. For the purposes of this paragraph:

(a) "Lodging accommodations" means any space offered to the public for lodging, including any hotel, motel, inn, tourist home or house, dude ranch, resort, campground, studio or bachelor hotel, lodging house, rooming house, residential home, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location in this state or other similar structure or space.

(b) "Unaffiliated third party" means a person that is not owned or controlled, directly or indirectly, by the same interests.

2. "Online lodging operator" means a person that is engaged in the business of renting to an occupant, including a transient as defined in section 42-5070, any lodging accommodation in this state offered through an online lodging marketplace.

3. "Online lodging transaction" means a charge to an occupant, including a transient as defined in section 42-5070, by an online lodging operator for the occupancy of any lodging accommodation in this state and includes an online transient lodging transaction.

4. "Online transient lodging transaction" means a charge to an occupant who is a transient as defined in section 42-5070 by an online lodging operator for the occupancy of any lodging accommodation in this state.

  Previous section
Next section  
 Article 2 Contents