42-5010

42-5010. Rates; distribution base

(Caution: 1998 Prop. 105 may apply)

A. The tax imposed by this article is levied and shall be collected at the
following rates:

1. Five per cent of the tax base as computed for the business of every person
engaging or continuing in this state in the following business classifications described
in article 2 of this chapter:

(a) Transporting classification.

(b) Utilities classification.

(d) Pipeline classification.

(e) Private car line classification.

(f) Publication classification.

(g) Job printing classification.

(h) Prime contracting classification.

(i) Owner builder sales classification.

(j) Amusement classification.

(k) Restaurant classification.

(l) Personal property rental classification.

(m) Retail classification.

2. Five and one-half per cent of the tax base as computed for the business of every
person engaging or continuing in this state in the transient lodging classification
described in section 42-5070.

3. Three and one-eighth per cent of the tax base as computed for the business of
every person engaging or continuing in this state in the mining classification described
in section 42-5072.

4. Zero per cent of the tax base as computed for the business of every person
engaging or continuing in this state in the commercial lease classification described in
section 42-5069.

B. Twenty per cent of the tax revenues collected at the rate prescribed by
subsection A, paragraph 1 of this section from persons on account of engaging in business
under the business classifications listed in subsection A, paragraph 1, subdivisions (a)
through (i) of this section is designated as distribution base for purposes of section
42-5029.

C. Forty per cent of the tax revenues collected at the rate prescribed by
subsection A, paragraph 1 of this section from persons on account of engaging in business
under the business classifications listed in subsection A, paragraph 1, subdivisions (j)
through (m) of this section is designated as distribution base for purposes of section
42-5029.

D. Thirty-two per cent of the tax revenues collected from persons on account of
engaging in business under the business classification listed in subsection A, paragraph
3 of this section is designated as distribution base for purposes of section 42-5029.

E. Fifty-three and one-third per cent of the tax revenues collected from persons on
account of engaging in business under the business classification listed in subsection A,
paragraph 4 of this section is designated as distribution base for purposes of section
42-5029.

F. Fifty per cent of the tax revenues collected from persons on account of engaging
in business under the business classification listed in subsection A, paragraph 2 of this
section is designated as distribution base for purposes of section 42-5029.

G. In addition to the rates prescribed by subsection A of this section, if approved
by the qualified electors voting at a statewide general election, an additional rate
increment is imposed and shall be collected through June 30, 2021. The taxpayer shall pay
taxes pursuant to this subsection at the same time and in the same manner as under
subsection A of this section. The department shall separately account for the revenues
collected with respect to the rates imposed pursuant to this subsection and the state
treasurer shall distribute all of those revenues in the manner prescribed by section
42-5029, subsection E. The rates imposed pursuant to this subsection shall not be
considered local revenues for purposes of article IX, section 21, Constitution of
Arizona. The additional tax rate increment is levied at the rate of six-tenths of one per
cent of the tax base of every person engaging or continuing in this state in a business
classification listed in subsection A, paragraph 1 of this section.

H. Any increase in the rate of tax that is imposed by this chapter and that is
enacted by the legislature or by a vote of the people does not apply with respect to
contracts entered into by prime contractors or pursuant to written bids made by prime
contractors on or before the effective date of the legislation or the date of the
election enacting the increase. To qualify for the exemption under this subsection, the
prime contractor must maintain sufficient documentation, in a manner and form prescribed
by the department, to verify the date of the contract or written bid.

I. For taxpayers taxable under this chapter other than prime contractors taxable
pursuant to section 42-5075:

1. Any increase in the rate of tax that is levied by this article or article 2 of
this chapter enacted by the legislature or by a vote of the people does not apply for a
period of one hundred twenty days from the date of the tax rate increase to the gross
proceeds of sales or gross income from the business of the taxpayer with respect to
written contracts entered into before the effective date of the tax rate increase unless
the taxpayer has entered into a contract that contains a provision that entitles the
taxpayer to recover from the purchaser the amount of the additional tax levied.

2. The provisions of this subsection apply without regard to the accounting method
used by the taxpayer to report the taxes imposed under article 2 of this chapter.

3. The provisions of this subsection shall not be considered in determining the
rate of tax imposed under chapter 6, article 3 of this title.