§ 460. Retail sales: measure of tax; burden of proof; exclusions.

(a)

The tax rate shall be at an amount equal to one and seven and one-half tenths percent (1.75%) of the gross income from the business activity upon every person engaging or continuing in the business of selling tangible personal property at retail.

(b)

The burden of proving that a sale of tangible personal property is not a taxable retail sale shall be upon the person who made the sale.

(c)

Exclusions. For the purposes of this chapter, sales of tangible personal property shall not include:

(1)

Sales of stocks, bonds, options, or other similar materials.

(2)

Sales of lottery tickets or shares pursuant to Article I, Chapter 5, Title 5, Arizona Revised Statutes.

(3)

Sales of platinum, bullion, or monetized bullion, except minted or manufactured coins transferred or acquired primarily for their numismatic value as prescribed by regulation.

(4)

Gross income derived from the transfer of tangible personal property which is specifically included as the gross income of a business activity upon which another Section of this article imposes a tax, shall be considered gross income of that business activity, and are not includable as gross income subject to the tax imposed by this section.

(5)

Sales by professional or personal service occupations where such sales are inconsequential elements of the service provided.

(d)

(Reserved)

(e)

When this City and another Arizona City or town with an equivalent excise tax could claim nexus for taxing a retail sale, the City or town where the permanent business location of the seller at which the order was received shall be deemed to have precedence, and for the purposes of this chapter such City or town has sole and exclusive right to such tax.

(f)

The appropriate tax liability for any retail sale where the order is received at a permanent business location of the seller located in this City or in an Arizona City or town that levies an equivalent excise tax shall be at the tax rate of the City or town of such seller's location.

(g)

Retail sales of prepaid calling cards or prepaid authorization numbers for telecommunications services, including sales of reauthorization of a prepaid card or authorization number are subject to tax under this section.

(Ord. No. 2272, § 13, 11-27-89; Ord. No. 2789, § 15, 6-5-95; Ord. No. 2967, § 6, 11-18-96; Ord. No. 3260, § 1, 10-19-99; Ord. No. 3569, § 15, 5-26-04; Ord. No. 4374, § 15, 11-26-18, eff. 2-1-19)

Editor's note

Ord. No. 3569, § 21(11), adopted May 26, 2004, provided that with respect to retail sales, Section 460, Appendix C, the increased tax rate shall apply to gross income from all contracts to deliver tangible personal property to a purchaser on or after July 1, 2004.