House of Representatives

HB 2629

use tax; individuals; repeal

Sponsors: Representatives Lesko, Urie: Barton, et al.

 

DP

Committee on Ways and Means

X

Caucus and COW

 

House Engrossed

Overview

HB 2629 exempts certain individuals from use tax liability and eliminates the individual use tax declaration requirement.

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.

Currently, tangible personal property purchased and brought into the state by non-residents is exempt from use tax if the first actual use or consumption of the property occurred outside the state, with the exception of tangible personal property used in conducting a business in Arizona.

Laws 2011, Chapter 128 requires a person who stores, uses or consumes tangible personal property subject to use tax for non-business purposes to declare the annual amount of tax due, if not collected by a registered retailer, on their individual income tax return.

Provisions

·          Exempts tangible personal property brought into Arizona by an individual from use tax.

·          Subjects out-of-state motor vehicles and watercraft to use tax (in addition to tangible personal property used in conducting a business in Arizona).

·          Eliminates the use tax declaration requirement on the individual income tax return.

 

 

 

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Fiftieth Legislature

Second Regular Session          2          January 28, 2012

 

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