A. The tax imposed by section 42-5155 shall be levied and collected at an amount equal to five and six-tenths per cent of the cost of the tangible personal property provided under the conditions of a warranty or service contract.

Terms Used In Arizona Laws 42-5156

  • 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

  • Contract: A legal written agreement that becomes binding when signed.
  • Department: means the department of revenue. See Arizona Laws 42-1001
  • Person: means an individual, firm, partnership, joint venture, association, corporation, estate, trust, receiver or syndicate, this state or a county, city, municipality, district or other political subdivision or agency thereof. See Arizona Laws 42-5151
  • Personal property: includes property of every kind, both tangible and intangible, that is not included as real estate. See Arizona Laws 42-11001
  • Personal property: All property that is not real property.
  • Property: includes both real and personal property. See Arizona Laws 1-215
  • Retailer: includes :

    (a) Every person engaged in the business of making sales of tangible personal property for storage, use or other consumption or in the business of making sales at auction of tangible personal property owned by that person or others for storage, use or other consumption. See Arizona Laws 42-5151

  • Tangible personal property: means personal property that may be seen, weighed, measured, felt or touched or that is in any other manner perceptible to the senses. See Arizona Laws 42-5001

B. Every person storing, using or otherwise consuming in this state tangible personal property provided under the conditions of a warranty or service contract is liable for the tax. Such person’s liability is not extinguished until the tax has been paid to this state, except that a receipt from a retailer maintaining a place of business in this state or from a retailer who is authorized by the department to collect the tax, under such rules as it may prescribe, and who is for the purposes of this article regarded as a retailer maintaining a place of business in this state, given to the purchaser in accordance with the provisions of section 42-5161 is sufficient to relieve the purchaser from further liability for the tax imposed upon the tangible personal property to which the receipt refers.

C. For the purpose of this section, "cost" means the cost of the tangible personal property to the provider of the warranty or contract.

 

 

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