A. A prepaid wireless telecommunications E911 excise tax is levied on every seller in an amount of eight-tenths of one per cent of the gross proceeds of sales or gross income derived from the retail sale of prepaid wireless telecommunications service.

Terms Used In Arizona Laws 42-5402

  • 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

  • Consumer: means a person who purchases prepaid wireless telecommunications service in a retail sale of prepaid wireless telecommunications service. See Arizona Laws 42-5401
  • 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
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • 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
  • Prepaid wireless telecommunications service: means a commercial mobile radio service, as defined by 47 C. See Arizona Laws 42-5401
  • Retail sale of prepaid wireless telecommunications service: means a sale of prepaid wireless telecommunications service by a seller for any purpose other than resale. See Arizona Laws 42-5401
  • Sale: means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatever, including consignment transactions and auctions and transactions facilitated by a marketplace facilitator on behalf of a marketplace seller, of tangible personal property or other activities taxable under this chapter, for a consideration, and includes:

    (a) Any transaction by which the possession of property is transferred but the seller retains the title as security for the payment of the price. See Arizona Laws 42-5001

  • Seller: means a person who sells prepaid wireless telecommunications service to another person. See Arizona Laws 42-5401

B. The seller is liable for the tax imposed under this section. The amount of tax may be separately stated on the invoice, receipt or other similar document that is provided to the consumer by the seller or otherwise disclosed to the consumer. The seller may retain three per cent of the amount of tax collected before remitting the tax to the department.

C. For the purpose of determining the location of a retail sale of prepaid wireless telecommunications service under this article, a retail sale of prepaid wireless telecommunications service occurs in this state if:

1. The retail sale of prepaid wireless telecommunications service is completed in person at a business location in this state.

2. If paragraph 1 of this subsection does not apply, the product is delivered to the consumer at an address in this state.

3. If paragraphs 1 and 2 of this subsection do not apply, the seller’s records that are maintained in the ordinary course of business indicate that the consumer’s address is located in this state and the seller’s records are not made or kept in bad faith.

4. If paragraphs 1, 2 and 3 of this subsection do not apply, the consumer gives the seller an address in this state during the completion of the sale, including the consumer’s payment instrument if no other address is available, and the address is not given in bad faith.

5. If paragraphs 1 through 4 of this subsection do not apply, the wireless telephone number is associated with a location in this state.

D. The amount of tax that is paid by a seller shall not be included in the tax base for computing any transaction privilege, sales, use, franchise or other similar tax or fee, however denominated, that is imposed by this state, any political subdivision of this state or any intergovernmental agency.

E. The tax levied under this section shall be the only E911 funding obligation for prepaid wireless telecommunications service in this state. This state, any political subdivision of this state or any intergovernmental agency shall not levy any other similar tax or fee, however denominated, on any seller or consumer for the sale, purchase, use or provision of prepaid wireless telecommunications service for the purpose of funding E911 service.

 

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