HB2716 - 502R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 42-5014, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5014. Return and payment of tax; estimated tax; extensions; abatements

A. Except as provided in subsection B, C or D of this section, the taxes levied under this article:

1. Are due and payable monthly in the form required by section 42‑5018 for the amount of the tax, to the department, on or before the twentieth day of the month next succeeding the month in which the tax accrues.

2. Are delinquent as follows:

(a) For taxpayers electing to file by mail, if not postmarked on or before the twenty‑fifth day of that month or if not received by the department on or before the business day preceding the last business day of the month.

(b) For taxpayers electing to file and pay electronically in any month, if not received by the department on or before the last business day of the month.

(c) For all other taxpayers, if not received by the department on or before the business day preceding the last business day of the month.

B. The department, for any taxpayer whose estimated annual liability for taxes imposed by this article is between five hundred two thousand dollars and one eight thousand two hundred fifty dollars, may shall authorize such taxpayer to pay such taxes on a quarterly basis. The department, for any taxpayer whose estimated annual liability for taxes imposed by this article is five hundred two thousand dollars or less, may shall authorize such taxpayer to pay such taxes on an annual basis.

C. The department may require a taxpayer whose business is of a transient character to file the return and remit the taxes imposed by this article on a daily, a weekly or a transaction by transaction basis, and those returns and payments are due and payable on the date fixed by the department without a grace period otherwise allowed by this section. For the purposes of this subsection, "business of a transient character" means sales activity by a taxpayer not regularly engaged in selling within the state conducted from vehicles, portable stands, rented spaces, structures or booths, or concessions at fairs, carnivals, circuses, festivals or similar activities for not more than thirty consecutive days.

D. In 2010, 2011 and 2012, if a business entity under which a taxpayer reports and pays income tax under title 43 has an annual total tax liability under this article, article 6 of this chapter and chapter 6, article 3 of this title in calendar year 2010, 2011 or 2012 of one hundred thousand dollars or more, based on the actual tax liability in calendar year 2009, 2010 or 2011, regardless of the number of offices at which the taxes imposed by this article, article 6 of this chapter or chapter 6, article 3 of this title are collected, or if the taxpayer can reasonably anticipate such liability in calendar year 2010, 2011 or 2012, the taxpayer shall report on a form prescribed by the department and pay an estimated tax payment in June, 2010, 2011 or 2012. Thereafter, if the business entity under which a taxpayer reports and pays income tax under title 43 has an annual total tax liability under this article, article 6 of this chapter and chapter 6, article 3 of this title of one million dollars or more, based on the actual tax liability in the preceding calendar year, regardless of the number of offices at which the taxes imposed by this article, article 6 of this chapter or chapter 6, article 3 of this title are collected, or if the taxpayer can reasonably anticipate such liability in the current year, the taxpayer shall report on a form prescribed by the department and pay an estimated tax payment each June. Any other taxpayer may voluntarily elect to pay the estimated tax payment pursuant to this subsection. The payment shall be made on or before June 20 and is delinquent if not postmarked on or before that date or if not received by the department on or before the business day preceding the last business day of June for those taxpayers electing to file by mail, or delinquent if not received by the department on the business day preceding the last business day of June for those taxpayers electing to file in person. The estimated tax paid shall be credited against the taxpayer's tax liability under this article, article 6 of this chapter and chapter 6, article 3 of this title for the month of June for the current calendar year. The estimated tax payment shall equal either:

1. One‑half of the actual tax liability under this article plus one‑half of any tax liability under article 6 of this chapter and chapter 6, article 3 of this title for May of the current calendar year.

2. The actual tax liability under this article plus any tax liability under article 6 of this chapter and chapter 6, article 3 of this title for the first fifteen days of June of the current calendar year.

E. The taxpayer shall prepare a return showing the amount of the tax for which the taxpayer is liable for the preceding month, and shall mail or deliver the return to the department in the same manner and time as prescribed for the payment of taxes in subsection A of this section. If the taxpayer fails to file the return in the manner and time as prescribed for the payment of taxes in subsection A of this section, the amount of the tax required to be shown on the return is subject to the penalty imposed pursuant to section 42‑1125, subsection A, without any reduction for taxes paid on or before the due date of the return. The return shall be verified by the oath of the taxpayer or an authorized agent or as prescribed by the department pursuant to section 42‑1105, subsection B.

F. Any person who is taxable under this article and who makes cash and credit sales shall report such cash and credit sales separately and upon making application may obtain from the department an extension of time for payment of taxes due on the credit sales. The extension shall be granted by the department under such rules as the department prescribes. When the extension is granted, the taxpayer shall thereafter include in each monthly report all collections made on such credit sales during the month next preceding and shall pay the taxes due at the time of filing such report.

G. The returns required under this article shall be made upon forms prescribed by the department.

H. The department, for good cause, may extend the time for making any return required by this article and may grant such reasonable additional time within which to make the return as it deems proper, but the time for filing the return shall not be extended beyond the first day of the third month next succeeding the regular due date of the return.

I. The department, with the approval of the attorney general, may abate small tax balances if the administration costs exceed the amount of tax due.

J. For the purposes of subsection D of this section, "taxpayer" means the business entity under which the business reports and pays state income taxes regardless of the number of offices at which the taxes imposed by this article, article 6 of this chapter or chapter 6, article 3 of this title are collected. END_STATUTE

Sec. 2. Section 42-5162, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5162. Monthly return; time for payment; extension of time; quarterly payment

A. Except as provided in section 42‑5169 or 42-5170, every retailer engaged in the business of making sales of tangible personal property the use, storage or consumption of which is subject to the tax imposed by this article, and every person who purchases for use, storage or consumption any such property for which the tax is not paid to the retailer, shall file a return with the department on or before the twentieth day of the month next succeeding the month in which the tax accrues. The return shall be on a form prescribed by the department and shall show the tangible personal property sold for use, storage or consumption or purchased for use, storage or consumption within the state during the preceding calendar month. Such return shall be verified by oath or affirmation of the retailer or person making the report, or his agent, and shall be accompanied by payment of the tax shown to be due. The return and tax are delinquent if not postmarked on or before the twenty-fifth day of the month when due or if not received by the department on or before the business day preceding the last business day of that month for those taxpayers electing to file by mail, or are delinquent if not received by the department on the business day preceding the last business day of the month when due for those taxpayers electing to file in person.

B. The department may, for any taxpayer whose estimated annual liability for taxes imposed by this article is between five hundred and one thousand two hundred fifty dollars, authorize such taxpayer to pay such taxes on a quarterly basis. The department may, for any taxpayer whose estimated annual liability for taxes imposed by this article is five hundred dollars or less, authorize such taxpayer to pay such taxes on an annual basis.

C. For good cause shown the department may extend the time for making a return and paying the tax, but the time for filing the return shall not be extended beyond the first day of the third month next succeeding the regular due date of the return. END_STATUTE

Sec. 3. Title 42, chapter 5, article 4, Arizona Revised Statutes, is amended by adding section 42-5170, to read:

START_STATUTE42-5170. Use tax declaration; businesses; department tables

A. Notwithstanding Section 42-5162, If a person operates a business that has annual gross receipts of less than five hundred thousand dollars and stores, uses or consumes tangible personal property subject to tax under this article for a business purpose and the tax was not collected by a registered retailer, the person shall declare an annual amount of tax due under this article on the person's income tax form pursuant to section 43-321.

B. The amount required to be declared under subsection A of this section shall be an amount prescribed by tables adopted by the department. A person who declares an annual amount based on the tables prescribed by the department is not subject to audit for use tax liability under this article.END_STATUTE

Sec. 4. Section 43-321, Arizona Revised Statutes, is amended to read:

START_STATUTE43-321. Information required in returns

Each return required to be filed under this title shall contain the following:

1. It shall contain or be verified by a declaration that it is made under penalties of perjury. The declaration shall be written or in a form prescribed by the department pursuant to section 42‑1105, subsection B.

2. A specific statement of the items of the taxpayer's gross income and the adjustments, deductions and credits allowed by this title.

3. A specific statement of the taxpayer's use tax liability pursuant to section 42‑5169 or 42-5170.

4. Such other information as the department may by rule prescribe for the purpose of carrying out the provisions of this title. END_STATUTE