42-5040. Sourcing of certain transactions involving tangible personal property; definitions

407 words·~2 min read·/az/title-42/42-5040

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. Except as provided in section 42-5075, retail sales of tangible personal property 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. Except as provided in section 42-5008.01, to the purchaser's location in this state if the seller receives the order at a business location outside this state or, if there is no delivery address, to the purchaser's billing address.

B. A shared vehicle transaction shall be sourced as follows:

1. To the permanent street address of the registered shared vehicle owner if the shared vehicle is registered in this state.

2. To the street address in this state where the shared vehicle owner resides while in this state if the shared vehicle is registered in another state or country.

3. To the location of the shared vehicle at the car sharing start time if the shared vehicle owner does not reside in this state and the shared vehicle is registered in another state or country.

C. For the purposes of subsection A of this section, an order is received when all of the information necessary to accept the order has been received by or on behalf of the seller, regardless of where the order is accepted or approved. The place of business or residence of the purchaser does not determine where the order is received.

D. The gross receipts from leasing or renting tangible personal property shall be sourced as follows:

1. To the lessor's business location if the lessor has a business location in this state.

2. To the lessee's address if the lessor does not have a business location in this state or, if there is no lessee's address, to the lessee's billing address. The gross receipts are taxable when the property is shipped, delivered or otherwise brought into this state for use in this state.

E. For the purposes of this section:

1. "Car sharing start time" has the same meaning prescribed in section 28-9601.

2. "Lessee's address" means the residential address of an individual lessee and the primary business address of any other lessee.

3. "Lessor's business location" means the business address that appears on the lessor's transaction privilege tax license.

4. "Shared vehicle" has the same meaning prescribed in section 28-9601.

5. "Shared vehicle owner" has the same meaning prescribed in section 28-9601.

6. "Shared vehicle transaction" has the same meaning prescribed in section 28-9601.