State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB 1019: TPT; over the top

PRIME SPONSOR: Senator Allen S, LD 6

BILL STATUS: House Engrossed

 

Overview

Excludes over-the-top (OTT) audio or video programming services from the telecommunications classification and exempts them from municipal taxation. Additionally, it specifies the sourcing of any taxation in the absence of a delivery address.

History

Arizona taxes, under the telecommunications classification, the business of providing intrastate  telecommunications services. (A.R.S. §42-5064) State law, however, does not specifically address the imposition of a tax on over-the-top (OTT) services. Current state law prohibits a city, town or special taxing district from levying a transaction privilege, sales, use or other similar tax on certain activities.               (A.R.S. §42-6004) Although the law does exempt interstate telecommunications services from municipal taxes, it does not address OTT services.

Provisions

1.       Specifies that a purchaser's billing address will be used to source the transaction if there is no delivery address. (Sec. 1)

2.       Specifies that a lessee's billing address will be used to source the transaction if there is no lessee's address. (Sec. 1)

3.       Excludes OTT services from the telecommunications classification. (Sec. 2)

4.       Defines OTT services. (Sec. 2)

5.       Provides that OTT services does not include pay-per-view audio and video programming that is provided at no additional charge. (Sec. 2)

6.       Excludes OTT services from municipal tax. (Sec. 3 and 4)

7.       Makes technical and conforming changes.

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11.   Fifty-fourth Legislature                       SB 1019

12.   First Regular Session                            Version 1: House Engrossed

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