Arizona Administrative Code
Title 15 - REVENUE
Chapter 5 - Department of Revenue - Transaction Privilege and Use Tax Section
Article 1 - RETAIL CLASSIFICATION
Section R15-5-137 - Warranty or Service Provisions and Tangible Personal Property Used in Conjunction with Warranty or Service Provisions

Universal Citation: AZ Admin Code R 15-5-137

Current through Register Vol. 30, No. 38, September 20, 2024

A. For purposes of this rule, the following definitions apply:

1. "Covered" means included in the warranty or service provision.

2. "Warranty or service provision" means a manufacturer's or vendor's warranty that is sold automatically with tangible personal property and, for no extra charge, applies to any tangible personal property used in the servicing of the provision.

B. An exclusion from gross receipts is not allowed for a warranty or service provision on the sale of tangible personal property if the property cannot be sold without the acceptance of the warranty or service provision.

C. A warranty or service provision is not considered a warranty or service contract under A.R.S. § 42-5061(A).

D. Tangible personal property sold in conjunction with the servicing of a warranty or service provision, but not covered by the provision, is a sale of tangible personal property that is subject to tax under the retail classification unless statutorily exempt.

E. Tangible personal property that is covered under a warranty or service provision and used in the servicing of the provision is not subject to use tax as the transaction privilege tax was paid when the tangible personal property was acquired.

Disclaimer: These regulations may not be the most recent version. Arizona may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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