Transaction_Privilege_Tax_Applicability_for_Lodging.pdf

MailGate SC

Ms. Draper:

There is no deduction under the transient lodging classification for sales to the federal government. Such transactions are subject to tax.

A.R.S. § 42-5061(J) provides a deduction from the tax base under the retail classification for fifty percent of the gross proceeds or gross income from any sale of tangible personal property made directly to the United States Government or its departments or agencies by persons other than a manufacturer, modifier, assembler or repairer. This exemption applies only to retail sales of tangible personal property.

This is a Statement of General Guidance. A Statement of General Guidance does not pertain to a specific identified client. The Statement is designed to provide general advisory guidance that may be useful in complying with the laws administered by the Department. Statements of General Guidance are not binding on the Department. In addition, the advice it contains is solely dependent upon the adequacy and accuracy of the information provided.

Tax Policy

From: DRAPER, TIFFANY E GS-12 USAF AETC 56 CONS/LGCP [mailto:tiffany.draper.1@us.af.mil] Sent: Monday, September 17, 2018 2:00 PM To: AskTaxPolicy Subject: RE: [Non-DoD Source] RE: Arizona Transaction Privilege Tax (TPT) [secure]

Good Afternoon, Thank you for the response. I understand that the transaction privilege tax is applicable to the seller when they offer transient lodging services to the federal government. However, the documentation you provided is somewhat difficult to understand, as I do not have much experience with tax law. I am still confused as to whether a discounted half tax is applicable for transient lodging or whether the discounted half tax is applicable to purchases made with the Government Purchase Card (Government centrally billed account) or a Government Travel Card (Government employee is directly billed).

Please advise.

//SIGNED//

TIFFANY E. DRAPER, GS12, DAFC

Procurement Analyst, 56 CONS/LGCP

Voice: DSN 8967197 / Comm (623) 8567197

From: AskTaxPolicy <secureMailer.ddb34adaf4210481095469c44cde94b45@azdor.gov> On Behalf Of AskTaxPolicy Sent: Friday, September 14, 2018 5:10 PM To: TIRONE, ERNEST S GS11 USAF AETC 56 CONS/QA <ernest.tirone@us.af.mil> Cc: DRAPER, TIFFANY E GS12 USAF AETC 56 CONS/LGCP <tiffany.draper.1@us.af.mil>; MCCARTNEY, CHRISTINE L GS13 USAF AETC 56 CONS/LGCP <christine.mccartney@us.af.mil> Subject: [NonDoD Source] RE: Arizona Transaction Privilege Tax (TPT) [secure]

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From: AskTaxPolicy <AskTaxPolicy@azdor.gov>

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Subject: RE: Arizona Transaction Privilege Tax (TPT) [secure]

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