43-1025

43-1025. Agricultural crops contributed to
charitable organizations; definitions

A. In computing Arizona taxable income a subtraction is allowed for qualified crop
contributions during the taxable year to one or more charitable organizations. It is not
considered to be a double deduction to include both costs of producing the crop and the
subtraction in computing Arizona taxable income.

B. The amount of the subtraction shall not exceed eighty per cent of the wholesale
market price or eighty per cent of the most recent sale price for the contributed crop,
whichever is greater.

C. The contribution qualifies for a subtraction under this section only if all of
the following apply:

1. The crop is harvested by or on behalf of the donee charitable organization.

2. The use of the crop by the donee charitable organization is related to the
purpose or function constituting the basis of the organization's tax-exempt status.

3. The crop is not transferred by the donee charitable organization in exchange for
money, other property or services or for use outside Arizona.

4. The donee charitable organization provides a written statement to the taxpayer
that its use and disposition of the crop will comply with the requirements of this
section.

5. Harvesting or processing the crop in the normal course of the taxpayer's trade
or business would not be economically feasible.

6. The crop would go to waste if it was not contributed to the donee charitable
organization.

D. For purposes of this section:

1. "Most recent sale price" means an amount equal to the price that the taxpayer
would have received for the contributed crop, determined as if the crop had been sold by
that taxpayer on the date of the most recent sale of such a crop and at the same price
per unit as the crop that was sold on that date or at the price determined by an
agricultural market service on the date the crop is contributed.

2. "Qualified crop contribution" means any contribution of a crop or portion of a
crop grown in Arizona by a taxpayer engaged in the trade or business of farming or
processing agriculture crops to a charitable organization located in Arizona that is
exempt from tax under section 43-1201.

3. "Wholesale market price" means the average wholesale market price for the
contributed crop in the nearest regional market during the month in which the
contribution is made, determined without consideration of grade or quality of the crop
and as if the quantity of the contributed crop was marketable.