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HB2290 - 572R - H Ver
House Engrossed
TPT; sourcing;
business location; receipt
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2290
AN
ACT
amending section 42-5040, Arizona Revised
Statutes; relating to transaction privilege tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 42-5040, Arizona Revised
Statutes, is amended to read:
START_STATUTE
42-5040.
Sourcing of certain transactions involving tangible personal
property; definitions
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
at a business
location of the seller
, regardless of where the order is accepted or
approved. The place of business or residence of the purchaser
or the location of servers used to transmit the INFORMATION necessary
to accept the order to a business location
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. "Business location"
means a physical space that a person can occupy, such as an office or a room in
a house, and in which business is carried on.
1.
2.
"Car
sharing start time" has the same meaning prescribed in section 28-9601.
2.
3.
"Lessee's
address" means the residential address of an individual lessee and the
primary business
location
address of any other lessee.
3.
4.
"Lessor's
business location" means the business
location
address
that appears on the lessor's transaction privilege tax license.
4.
5.
"Shared
vehicle" has the same meaning prescribed in section 28-9601.
5.
6.
"Shared
vehicle owner" has the same meaning prescribed in section 28-9601.
6.
7.
"Shared
vehicle transaction" has the same meaning prescribed in section 28-9601.
END_STATUTE
Sec. 2.
Applicability
This act applies to taxable periods
beginning on or after the first day of the month following the general
effective date.