House of Representatives

HB 2300

direct use tax payments

Sponsor: Rep. May

X	Committee on Ways and Means
	Caucus and COW
	Third Read
	As Passed the House

HB 2300 would allow businesses that buy at least $500,000 worth of tangible personal property annually to pay their use taxes directly to the Department of Revenue (DOR).

History

Currently, businesses that are subject to TPT file their use tax obligation monthly with their TPT tax returns. Several businesses that are not subject to TPT (i.e., services like dry cleaners and hair dressers), but that do owe use taxes, apply for a use tax license and pay use taxes on a monthly, quarterly, or annual basis. Additionally, it is unclear that if taxes are paid on a purchase from an out-of-state vendor, whether the taxes collected by the vendor are sent back to Arizona or remitted to the vendor’s home state.

HB 2300 would allow businesses that spend at least $500,000 on tangible personal property annually to apply for a direct use tax payment permit. The permit would clarify to out-of-state vendors that in-state purchasers accept the responsibility of paying owed use taxes to DOR.

Provisions

· Allows businesses that spend at least $500,000 on tangible personal property annually to pay use taxes directly to DOR with a direct payment permit.

· Requires businesses with a direct payment permit to self-assess and pay use taxes directly to DOR for all tangible personal property subject to use tax.

· Requires DOR to issue direct payment permits to applicants that fit the necessary criteria.

· Allows valid direct payment permit holders to issue use tax direct payment certificates to retailers, shifting the responsibility of paying use taxes to the permit holders for that transaction.

· Requires cities and town to allow taxpayers to pay use taxes directly using the above procedures.

· Makes technical changes.

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· 45th Legislature

· Second Regular Session 2 February 8, 2002

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