HB2623 - 502R - House Bill Summary

House of Representatives

HB 2623

use tax declaration; repeal..

Sponsors: Representatives Lesko: Olson, Pierce, et al.

X	Committee on Ways and Means
	Caucus and COW
	House Engrossed

Overview

HB 2623 repeals the use tax declaration requirement on the individual income tax return, retroactive to July 20, 2011.

History

Use tax is paid by persons who use, store or consume any tangible personal property upon which tax has not been collected by a retailer. Scenarios in which use tax is collected include: out-of-state retailers or utility businesses making sales to Arizona purchasers; Arizona purchasers buying goods using a resale certificate where the goods are used, stored or consumed in Arizona contrary to the purpose stated on the certificate; or where a purchase is made in another state and the sales tax or excise tax imposed is less than the Arizona use tax rate. In Fiscal Year 2010, $271,763,845 of use tax collections were deposited into the state General Fund. The state use tax rate is currently 6.6 percent, raised from 5.6 percent in 2010.

Currently, businesses and individuals are required to file monthly use tax returns on a form prescribed by DOR. If a taxpayer’s annual use tax liability is between $500 and $1,250, DOR may authorize the taxpayer to file quarterly rather than monthly returns. If the annual liability is less than $500, DOR may authorize the taxpayer to file an annual return. Laws 2011, Chapter 128 created the use tax declaration which added “unpaid Arizona use tax” to the first page of the individual income tax return form provided by DOR.

Provisions

· Repeals the Arizona use tax declaration on the individual income tax return form prescribed and provided by DOR.

· Makes technical and conforming changes.

· Contains a retroactivity clause to July 20, 2011.

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Fiftieth Legislature