Ariz. Admin. Code § 15-5-2210

Current through Register Vol. 30, No. 44, November 1, 2024

Section R15-5-2210 - Collection of Tax by the Vendor

A. The vendor may pass on the economic burden of the transaction privilege tax, either as an unspecified portion of the overall selling price or as a separate and distinct item of charge.

1. If a vendor elects to pass on the economic burden of the tax as a separate and distinct item of charge, the vendor's tax base shall not include any collected state, county, city, or town taxes.

2. If the vendor does not pass on the tax as a separate and distinct item of charge, the vendor may factor out the tax. See R15-5-2210.01.

3. The amount of tax on a transaction shall be the same whether the tax is stated as a separate and distinct item of charge or the tax is calculated using the factoring method.

4. Calculation of the amount of the tax using the separate and distinct item of charge method shall be as follows:

Price of tangible personal property $100

Multiply the price by the applicable tax rate

$100 times 5% equals the tax as calculated $5

Total cost to the consumer $105

B. All taxes collected shall be remitted to the Department and applicable taxing jurisdictions. If a vendor has collected tax in excess of the tax liability for the reporting period, the excess tax shall also be remitted.

Ariz. Admin. Code § R15-5-2210

Repealed effective April 13, 1987 (Supp. 87-2). New Section adopted effective October 14, 1993 (Supp. 93-4). Reference correction (Supp. 95-2).