Taxpayer may now be authorized to report their use tax based on a percentage, rather than on actual purchases. The Arizona Director of Taxation may allow the Taxpayer to use a percentage-based reporting method, instead of having to use actual purchases to determine the amount of Arizona use tax due.
In order to do this, the Taxpayer must:
The Director of Taxation has several options available when determining the standards that the Taxpayer must use to calculate the use tax. Transactions may be categorized:
For Taxpayer electing to pay use taxes directly to the Arizona Department of Revenue, the effective date for purchases based on a percentage-based reporting method will be on or after June 30, 2005. For all other Taxpayer, the Legislation will be effective for taxable purchases beginning on or after June 30, 2007.
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