Second Regular Session H.B. 2479
SENATE AMENDMENTS TO H.B. 2479
(Reference to House engrossed bill)
Page 3, line 41, strike "specified digital goods or"
Page 5, lines 27 and 28, strike "specified digital goods transferred electronically or"
Page 6, strike lines 4 through 8
Reletter to conform
Strike lines 32 through 34
Renumber to conform
Page 7, line 23, after "services" strike remainder of line
Strike lines 24 and 25, insert "is"
Line 27, strike "specified digital good or"
Lines 29 and 30, strike "a specified digital good or"
Line 35, strike "transferred electronically"
Page 8, strike lines 1 through 37, insert:
"Sec. 3. Title 42, chapter 5, article 1, Arizona Revised Statutes, is amended by adding section 42-5040.01, to read:
42-5040.01. Sourcing of certain transactions not involving tangible personal property; bundled transactions
A. Transactions involving prewritten computer software and specified digital goods shall be sourced as follows:
1. To the seller's business location if the seller receives the order at a business location in this state.
2. To the purchaser's location in this state if the seller receives the order at a business location outside this state. In the absence of a delivery address, the purchaser's billing address may be used for the purposes of this paragraph.
B. The taxable situs for audio or video programming services that are delivered by means of an internet connection and that are not otherwise exempt from taxation as over-the-top services is any of the following:
1. The customer's residential street address if the customer is a residential customer.
2. The customer's primary business street address if the customer is a business customer.
3. The customer's billing address.
C. In the case of a bundled transaction, if the price is attributable to both products that are taxable and products that are not taxable, the portion of the price attributable to the nontaxable products may be subject to tax unless the provider can identify, by reasonable and verifiable standards, that portion from the provider's books and records that are kept in the regular course of business for other purposes, including nontax purposes. A transaction is not a bundled transaction if it includes taxable products and nontaxable products and the purchase price or sales price of the taxable products is de minimis. For the purposes of this subsection, "de minimis" means the seller's purchase price or sales price of the taxable products is fifteen percent or less of the total purchase price or sales price of the bundled products."
Page 8, line 42, strike the first comma insert "and"
Line 43, strike "for" insert "the"; after "software" insert "or specified digital goods"
Lines 44 and 45, strike ", and selling, renting or licensing for use of specified digital goods transferred electronically"
Page 17, between lines 4 and 5, insert:
"61. Sales, rentals or licenses of over-the-top services consisting of audio or video programming services received by the end-user customer by means of an internet connection, regardless of the technology used, that include linear or live programming and that are generally considered to be comparable to programming provided by a radio or television broadcast station regardless of whether the services are provided independently or packaged with other audio or video programming. Over-the-top services do not include pay-per-view audio and video programming services consisting of a system requiring that a customer pay separately for each program viewed regardless of the manner in which the program may be viewed or whether the program is live, scheduled or available on demand."
Page 29, line 38, strike "transferred electronically"
Strike lines 41 and 42
Renumber to conform
Line 45, strike "transferred electronically"
Page 30, lines 21 and 22, strike "transferred electronically"
Lines 25 and 28, strike "transferred electronically"
Between lines 40 and 41, insert:
"E. From and after June 30, 2021 through June 30, 2041, in addition to the rate prescribed by subsection C of this section, an additional rate increment of six-tenths of one percent is imposed and shall be collected. The taxpayer shall pay taxes pursuant to this subsection at the same time and in the same manner as under subsection C of this section. The department shall separately account for the revenues collected with respect to the rate imposed pursuant to this subsection, and the state treasurer shall pay all of those revenues in the manner prescribed by section 42‑5029.02, subsection A."
Reletter to conform
Line 42, strike "transferred electronically"
Page 31, lines 10 and 12, strike "transferred electronically"
Lines 16 and 17, strike "transferred electronically"
Line 23, strike "transferred electronically"
Page 32, lines 21 and 32, strike "transferred electronically"
Page 33, line 7, strike "transferred electronically"
Line 22, after "software" insert "and specified digital goods"; after the second comma strike remainder of line
Line 23, strike "goods transferred electronically,"
Page 33, line 26, strike "42-5040" insert "42-5040.01"
Line 29, after "services" strike remainder of line
Strike line 30, insert "or on over-the-top services described in section 42‑5061, subsection A, paragraph 61, except as provided in section 42‑5040.01, subsection C. The"
Line 38, strike the third comma insert "and"
Line 39, strike "and "transferred electronically""
Page 35, line 2, after "software" insert "and specified digital goods"; after the second comma strike remainder of line
Line 3, strike "digital goods that are transferred electronically to the purchaser"
Line 6, after the second comma strike remainder of line
Strike line 7
Amend title to conform