Transaction Privilege Tax Ruling TPR 21-2, Ariz. Dept. of Rev. (11/21); Draft Documents for Public Comment, Ariz. Dept. of Rev. (11/21). The Arizona Department of Revenue has posted for public comment a draft Arizona transaction privilege tax ruling addressing whether providing remotely accessed web hosting and servers is taxable as a rental of tangible personal property under Arizona Revised Statutes § 42‐5071 and Model City Tax Code § ‐450. Among its conclusions, the draft ruling provides that assuming a taxpayer has nexus under Wayfair, a server rental (including dedicated servers, virtual private servers and dedicated virtual or physical servers) generally is considered taxable under the personal property rental classification when:
- The server is intended to be used by an “Arizona located lessee”;
- The lessee is provided exclusive use and control of the server, or server features, for a fixed payment;
- The agreement, if not renewed, terminates at either a specific time (e.g., subscription agreements) or upon a specific event (e.g., termination notice or nonpayment); and
- After termination the lessee no longer has access to the server.
Source Deloitte
Latest Posts in "United States"
- Sitka, Alaska Declares Sales Tax-Free Days for Black Friday Weekend, November 28-29, 2025
- Florida Introduces Extended Sales Tax Holiday for Firearms and Outdoor Gear, September-December 2025
- Rhode Island Implements 7% Sales Tax on Short-Term Parking in Lots and Garages
- Understanding the 1% Transportation Sales Tax Referendum: Key Facts and Implications for Voters
- Supporters and Critics Clash Over Mecklenburg’s Proposed 1% Transit Sales Tax Referendum